Indonesia's Pawnbroking Industry Outlook for 2026

Strong Growth Momentum

The Indonesian pawnbroking industry is poised for positive growth in 2026, building on the strong financing disbursement trend observed in 2025. As of October 2025, total financing disbursed by pawnbroking companies surged 38.89% year-on-year to Rp120.45 trillion ¹

, demonstrating robust demand for short-term credit facilities. This growth momentum is expected to continue into 2026, supported by various factors including potential interest rate reductions and regulatory developments.

Regulatory Landscape

The Financial Services Authority (OJK) has introduced new regulations through POJK No. 29/2025, which came into effect on December 1, 2025 ²

. This regulation simplifies the licensing requirements for pawnbroking businesses, potentially opening the market to new entrants and increasing competition. Key changes include:

• Minimum initial capital requirement of Rp500 million for license applicants
• Simplified permitting process for existing operators
• Enhanced regulatory framework for industry operations

Industry Response and Strategies

Major players in the industry are proactively preparing for the changing landscape:

1. PT Pegadaian: Expects improved financial margins in 2026 if interest rates continue to decline, as their cost of funds is likely to decrease ⁴
   Source 4

   https://keuangan.kontan.co.id/news/pemangkasan-suku-bunga-buka-peluang-perbaikan-kinerja-pergadaian-pada-2026
   .
2. PT Budi Gadai Indonesia: Targets 20% business growth in 2026 through branch expansion and focusing on stable-demand segments ³
   Source 3

   https://keuangan.kontan.co.id/news/budi-gadai-indonesia-targetkan-pertumbuhan-bisnis-20-pada-2026
   .
3. ValueMax: Preparing strategic responses to the new competitive landscape following the regulatory changes ²
   Source 2

   https://keuangan.kontan.co.id/news/pojk-baru-buka-persaingan-gadai-valuemax-siapkan-strategi-hadapi-2026
   .

Challenges and Opportunities

While the industry faces challenges such as low human resource creativity, limited capital for expansion and digitalization, and low consumer literacy about pawnbroking services ¹

, there are significant opportunities for growth through:

• Digital service development
• Product diversification
• Collaboration with MSMEs
• Regulatory support for digitalization and consumer protection

Conclusion

The Indonesian pawnbroking industry is at a critical juncture, balancing between growth opportunities and regulatory challenges. As the industry navigates through these changes, companies that successfully adapt through digital innovation, strategic expansion, and regulatory compliance are likely to emerge stronger in 2026.