Causing Public Unrest, OJK Shuts Down 27 Illegal Pawnshops
Jakarta, CNBC Indonesia – The existence of illegal pawnshops remains a challenge for the industry as they cause public distress. The Financial Services Authority (OJK), through the PASTI task force, continues to take action against unlicensed business activities in the sector.
Agusman, Executive Head of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Service Institutions at OJK, said that throughout this year the authority has halted dozens of illegal pawnshop companies that have unsettled the public.
“From January to 31 August 2026, the business activities of 27 illegal pawnshop entities have been halted. Coordinated efforts to tackle illegal pawnshops will continue to be carried out through the PASTI task force,” he said in an official statement on Tuesday (15/9/2026).
Agusman revealed that the eradication of the illegal pawnshop industry continues in accordance with Article 247 of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, as amended by Law Number 4 of 2026 (P2SK Law), and POJK Number 14 of 2024 on the Task Force for Handling Unlicensed Business Activities in the Financial Sector.
On the other hand, under the pawnshop roadmap, OJK is also encouraging sharia pawnshop companies, which remain few in number. Currently, there are four full-fledged sharia pawnshop companies and one Sharia Business Unit.
“The opportunity to add sharia pawnshop operators remains wide open, in line with Indonesia’s large Muslim population and the high demand from the public and MSMEs for pawnshop financing services, including sharia pawnshops,” he said.
Agusman added that public education about the pawnshop industry continues. According to the 2026 SNLIK, the pawnshop literacy index stands at 52.82%, while inclusion is 7.99%. The gap between these figures stems from limitations in available product innovation.
“The gap between pawnshop literacy and inclusion needs to remain a point of attention,” he stressed.
However, according to him, a higher literacy level is not necessarily attributable solely to limited product innovation, as the decision to use financing is also influenced by people’s needs and risk profiles.
OJK, together with the industry and associations, continues to strengthen the development of products and services in line with the 2025-2030 Pawnshop Roadmap. Through POJK Number 39 of 2024 on Pawnshops, as amended by POJK Number 29 of 2025, pawnshop companies may conduct other business activities after obtaining OJK approval, as one of the efforts to encourage product development in the pawnshop industry.