OJK Simplifies Pawnbroking Business Licensing Requirements, Industry Reacts Positively

New Regulatory Framework

The Financial Services Authority (OJK) has issued POJK No. 29/2025, amending previous regulations (POJK No. 39/2024) regarding pawnbroking businesses ¹

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Source 2

https://keuangan.kontan.co.id/news/ojk-sederhanakan-persyaratan-izin-usaha-gadai-budi-gadai-sambut-baik

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Source 3

https://keuangan.kontan.co.id/news/ojk-sederhanakan-persyaratan-izin-usaha-untuk-bisnis-gadai-ini-kata-ppgi

. The new regulation simplifies the licensing requirements for existing pawnbroking operators at both individual and corporate levels.

Key Provisions of the New Regulation

1. Initial Capital Requirement: Existing pawnbroking businesses operating at the regency/city level that haven't obtained an OJK license are now required to have initial capital of Rp500 million to obtain a license ¹
   Source 1

   https://keuangan.kontan.co.id/news/ojk-sederhanakan-persyaratan-izin-usaha-bisnis-gadai-ini-respons-gadai-valuemax
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2. Implementation Period: The simplified licensing requirements are effective from 1 December 2025 to 12 January 2026 ²
   Source 2

   https://keuangan.kontan.co.id/news/ojk-sederhanakan-persyaratan-izin-usaha-gadai-budi-gadai-sambut-baik
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3. Industry Impact: The regulation aims to formalize the pawnbroking industry by bringing unlicensed operators into the regulatory framework.

Industry Response

PT Gadai ValueMax Indonesia

PT Gadai ValueMax Indonesia, a prominent player in the industry, has positively received the new regulation. The company views this as a beneficial development for the industry as it provides legal certainty for consumers transacting with pawnbroking companies ¹

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PT Budi Gadai Indonesia

PT Budi Gadai Indonesia, a private pawnbroking company based in North Sumatra, also welcomes the OJK's decision. They see this as a positive regulatory development that will help legitimize the industry ²

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Indonesian Pawnbroking Companies Association (PPGI)

The PPGI, representing various pawnbroking companies, has responded positively to the new regulation. While acknowledging the relatively short implementation period, PPGI Secretary Holilur Rohman stated that this shouldn't pose significant challenges for existing operators ³

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Analysis and Implications

The OJK's decision to simplify licensing requirements while setting a clear capital requirement represents a balanced regulatory approach. This move is expected to:

1. Formalize the pawnbroking industry by bringing previously unlicensed operators into the regulatory fold
2. Enhance consumer protection through increased regulatory oversight
3. Improve industry standards through clearer operational guidelines