OJK continues to study maximum interest rate limits for pawnshop industry
Jakarta (ANTARA) - The Financial Services Authority (Ovaritas Jasa Keuangan, OJK) has stated that it is continuing its assessment and in-depth study regarding the maximum interest rate limits, or mu’nah tariffs, for the pawnshop industry.
“The study is being conducted carefully to ensure that the resulting policy is precisely targeted to strengthen consumer protection while considering the business sustainability of the pawnshop industry,” said Agusman, the Executive Head of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML) at OJK, in a written response in Jakarta on Monday.
Regarding the impact of the BI-Rate on the pawnshop industry, Agusman explained that a cumulative increase in the BI-Rate of 100 basis points (bps) has the potential to affect the pawnshop industry, particularly for companies that rely on funding from banks under floating interest rate schemes.
In this regard, pawnshop companies are encouraged to prepare more efficient funding strategies and strengthen risk management and prudential principles.
“The increase in the BI-Rate is not expected to directly affect the interest rates charged to customers,” said Agusman.
For context, the distribution of financing in the pawnshop industry in July 2026 grew by 50.73 per cent year-on-year to Rp160.78 trillion, with the largest portion of financing provided in the form of pawn products amounting to Rp136.39 trillion, or 84.83 per cent of total financing.
Regarding the still-low level of inclusion, Agusman noted that the gap between literacy and inclusion in the pawnshop sector requires continuous attention. This is because the pawnshop literacy index was recorded at 52.82 per cent, whereas inclusion stood at only 7.99 per cent, according to the 2026 SNLIK.
According to Agusman, higher literacy levels are not necessarily hindered by a lack of product innovation, as the decision to use financing is also influenced by the needs and risk profiles of the public.
“OJK, together with the industry and associations, continues to strengthen product and service development in accordance with the 2025-2030 Pawnshop Roadmap,” he said.
Under OJK Regulation (POJK) Number 39 of 2024 concerning Pawnshops, as amended by POJK Number 29 of 2025, pawnshop companies may conduct other business activities after obtaining OJK approval, as part of an effort to encourage product development within the industry.
In terms of consumer protection, OJK, through the PASTI Task Force, has halted the business activities of 27 illegal pawnshop entities between January and 31 August 2026.
This step is in accordance with Article 247 of Law Number 4 of 2023 regarding the Development and Strengthening of the Financial Sector, as amended by Law Number 4 of 2026 (UU P2SK), and POJK Number 14 of 2024 concerning the Task Force for Handling Unlicensed Business Activities in the Financial Sector.
“Coordinated steps to handle illegal pawnshops will continue to be carried out through the PASTI Task Force,” said Agusman.