Jakarta (ANTARA) - The Financial Services Authority (Ovaritas Jasa\nKeuangan, OJK) has stated that it is continuing its assessment and\nin-depth study regarding the maximum interest rate limits, or mu\u2019nah\ntariffs, for the pawnshop industry.<\/p>\n
\u201cThe study is being conducted carefully to ensure that the resulting\npolicy is precisely targeted to strengthen consumer protection while\nconsidering the business sustainability of the pawnshop industry,\u201d said\nAgusman, the Executive Head of Supervision of Financing Institutions,\nVenture Capital Companies, Microfinance Institutions, and Other\nFinancial Service Institutions (PVML) at OJK, in a written response in\nJakarta on Monday.<\/p>\n
Regarding the impact of the BI-Rate on the pawnshop industry, Agusman\nexplained that a cumulative increase in the BI-Rate of 100 basis points\n(bps) has the potential to affect the pawnshop industry, particularly\nfor companies that rely on funding from banks under floating interest\nrate schemes.<\/p>\n
In this regard, pawnshop companies are encouraged to prepare more\nefficient funding strategies and strengthen risk management and\nprudential principles.<\/p>\n
\u201cThe increase in the BI-Rate is not expected to directly affect the\ninterest rates charged to customers,\u201d said Agusman.<\/p>\n
For context, the distribution of financing in the pawnshop industry\nin July 2026 grew by 50.73 per cent year-on-year to Rp160.78 trillion,\nwith the largest portion of financing provided in the form of pawn\nproducts amounting to Rp136.39 trillion, or 84.83 per cent of total\nfinancing.<\/p>\n
Regarding the still-low level of inclusion, Agusman noted that the\ngap between literacy and inclusion in the pawnshop sector requires\ncontinuous attention. This is because the pawnshop literacy index was\nrecorded at 52.82 per cent, whereas inclusion stood at only 7.99 per\ncent, according to the 2026 SNLIK.<\/p>\n
According to Agusman, higher literacy levels are not necessarily\nhindered by a lack of product innovation, as the decision to use\nfinancing is also influenced by the needs and risk profiles of the\npublic.<\/p>\n
\u201cOJK, together with the industry and associations, continues to\nstrengthen product and service development in accordance with the\n2025-2030 Pawnshop Roadmap,\u201d he said.<\/p>\n
Under OJK Regulation (POJK) Number 39 of 2024 concerning Pawnshops,\nas amended by POJK Number 29 of 2025, pawnshop companies may conduct\nother business activities after obtaining OJK approval, as part of an\neffort to encourage product development within the industry.<\/p>\n
In terms of consumer protection, OJK, through the PASTI Task Force,\nhas halted the business activities of 27 illegal pawnshop entities\nbetween January and 31 August 2026.<\/p>\n
This step is in accordance with Article 247 of Law Number 4 of 2023\nregarding the Development and Strengthening of the Financial Sector, as\namended by Law Number 4 of 2026 (UU P2SK), and POJK Number 14 of 2024\nconcerning the Task Force for Handling Unlicensed Business Activities in\nthe Financial Sector.<\/p>\n
\u201cCoordinated steps to handle illegal pawnshops will continue to be\ncarried out through the PASTI Task Force,\u201d said Agusman.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-continues-to-study-maximum-interest-rate-limits-for-pawnshop-industry-1789397938", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }