Pawn Industry Reports Balanced Loan Applications and Repayments Ahead of Eid

Jakarta — The Secretary General of the Indonesian Pawn Company Association (PPGI), Holilur Rohman, stated that the trend of loan applications and repayments in the pawn industry remains balanced ahead of Eid 2026.

“Pawn activity ahead of Eid remains balanced between those applying for loans and those repaying loans, in accordance with the characteristics of each region and its community,” Holilur Rohman said when contacted by ANTARA from Jakarta on Monday.

According to him, pawn services remain one of the favoured financial services among the public due to easy access, rapid processing, and service offices scattered across many locations.

He noted that the types of items commonly pledged as collateral include gold and jewellery, mobile phones and laptops.

Regarding the trend in loan applications, Holilur explained that pawn loans are more commonly applied for by people living in major cities.

“Those applying for loans are typically those in major cities,” he added.

Earlier, Agusman, the Head of the Executive Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Service Institutions (PVML) at the Financial Services Authority (OJK), stated that financing disbursement in the pawn industry surged 60.05 per cent year-on-year to reach Rp143.14 trillion in January 2026.

He noted that the funding was dominated by pawn-based financing products totalling Rp115.98 trillion.

He projected that the value of financing disbursement is likely to increase ahead of Eid al-Fitr 1447 Hijriah.

“The Ramadan period leading to Eid becomes a momentum for increased financing disbursement, as public demand increases alongside additional seasonal working capital for small and medium enterprises,” said Agusman.

Historically, financing disbursement in the pawn industry has shown positive growth over the past two years. Disbursement by pawn companies in March 2024 grew by 1.78 per cent month-on-month, and rose 1.66 per cent month-on-month in March 2025.

Agusman estimates that the pawn industry will continue to grow positively despite intense competition from various digital financing products, such as online loans and Buy Now Pay Later (BNPL) services, because it remains capable of offering accessible collateral-based financing alternatives to the public.