OJK Shuts Down 278 Illegal Pawnshops, Urges Public Vigilance

The Financial Services Authority (OJK) has closed 278 illegal pawnshops through the Task Force for the Eradication of Illegal Financial Activities (Satgas Pasti). The crackdown on these illegal pawnshops has been ongoing since 2019.

OJK Executive Head of Supervision of Financial Service Provider Conduct, Education, and Consumer Protection, Dicky Kartikoypend, stated that the number of illegal companies continues to increase. “As of June 2026, Satgas Pasti has identified and halted the operations of 278 illegal pawnshops,” he said during a virtual press conference on Tuesday (7/7/2026).

In this enforcement action, OJK also coordinated with relevant institutions such as the police and all regional branch offices. Nevertheless, this business remains difficult to eradicate because it often operates under camouflage.

“At OJK, we are certainly working together with all supervisors and law enforcement. When discussing illegal activities, it is very difficult for us to identify them because, in certain regions, they may appear and then quickly camouflage themselves,” he explained.

According to him, illegal businesses are proliferating everywhere due to the simple and easily accessible nature of pawn services. To obtain financing, customers only need to submit items as collateral, which are then appraised before a loan is issued.

“In essence, pawning is a relatively easy and simple form of financial service. We provide collateral or items that are appraised, and then we can receive funds based on the valuation or appraisal of those items. Because it is so simple, many illegal operations have emerged,” he noted.

Dicky warned that using illegal pawnshops certainly carries negative impacts, as they charge significantly high interest rates accompanied by high risks.

“From the consumer protection perspective, we are very concerned and are continuously striving to stop or eradicate illegal activities, whether it be pawnshops or any other illegal financial services present in society. We are working hard to bring them to an end,” he concluded.