Indonesia's Pawnbroking Industry Surges to Rp111.68 Trillion in Financing

Gold-Driven Growth in Pawnbroking Loans

As of September 2025, Indonesia's pawnbroking industry has witnessed significant growth, with total loan disbursements reaching Rp93 trillion, representing 83.28% of the industry's total financing. The Otoritas Jasa Keuangan (OJK), Indonesia's financial regulator, reported that this figure marks a substantial 35.41% year-on-year increase in pawnbroking loans. The surge is primarily attributed to the rising price of gold, which has encouraged individuals to pawn their gold assets to secure loans.

Industry Performance and Regulatory Oversight

The overall financing in the pawnbroking industry stood at Rp111.68 trillion as of September 2025, reflecting a robust 30.92% year-on-year growth. Agusman, Head of Executive Supervisor for Financing Institutions at OJK, highlighted that despite the rapid growth, the industry's credit risk remains manageable. The regulator is focusing on enhancing its digital surveillance capabilities through the development of standardized digital reporting systems. This initiative is part of the OJK's Roadmap for the Pawnbroking Industry 2025-2030, aimed at strengthening risk-based supervision.

Regulatory Focus on Service Innovation and Risk Management

The OJK is steering the industry towards improving service efficiency and innovation rather than engaging in interest rate competition. Agusman emphasized that customers prioritize speed and convenience in obtaining financing over interest rates. To address potential risks, the OJK is strengthening its oversight of potential misuse of collateral assets while ensuring that pawnbroking companies adhere to good governance and consumer protection principles. The regulator is working closely with industry players to develop robust systems for managing collateral assets.