Govt. considers IPO for pawnbroker

The government is considering turning the country's state-owned pawnbroker into a limited company ahead of a possible partial privatization, the Financial Times reported Monday (11/2/08).

Some 23 million Indonesians used Pegadaian last year to take out Rp23,300 billion ($2.5 billion) in loans ranging from Rp20,000 to billions of rupiah.

The company reported pre-tax profits of Rp610 billion in 2007, up 22% on 2006, which in turn was up 52% on 2005. In 2006 Pegadaian had assets of about Rp6,000 billion.

"Pegadaian certainly has great potential so we're keen to restructure it,” said state-owned enterprises minister Sofyan Djalil.

Last year Pegadaian began working with US financial services company Western Union to provide an additional outlet for Indonesian workers overseas to send money home.