OJK provides legal certainty for document-based loans in pawnbroking industry

The Financial Services Authority (OJK) has provided legal certainty for the pawnbroking industry to conduct document-based lending activities, said Agusman, Chief Executive of the Financing Institutions, Venture Capital, and Other Financial Institutions Supervisory (PVML) at OJK. The provision allows pawnbroking companies that meet certain requirements to disburse document-based loans. The rule is stipulated in POJK Number 39 of 2024, as amended by POJK Number 29 of 2025. “We can convey that this document-based lending policy aims to provide legal certainty for pawnbroking companies in carrying out such activities through an approval mechanism for other activities in accordance with applicable regulations,” he said during a press conference on the results of the OJK Monthly Board of Commissioners Meeting (RDK) in Jakarta on Tuesday. Agusman stated that the policy is expected to support micro, small, and medium enterprises (MSMEs) and expand access to financing for the public. Furthermore, the regulation also provides room for the growth of the pawnbroking industry while still applying prudential principles, risk management, and good governance. According to Agusman, the document-based lending policy is also part of OJK’s efforts to give pawnbroking companies space to develop financing activities beyond pawn products. OJK recorded that the pawnbroking industry’s financing distribution in June 2026 grew 54.47 percent year-on-year (yoy) to Rp162.26 trillion. Of the total financing, the largest distribution came from pawn products, reaching Rp136.88 trillion or 84.36 percent. “This financing is still dominated by gold pawns, which account for around 95 percent,” Agusman explained.