Pegadaian and SMBC Indonesia Collaborate on Developing the 2026 Sustainable Financing Framework
PT Pegadaian (Pegadaian) and PT Bank SMBC Indonesia Tbk (SMBC Indonesia) are strengthening their commitment to integrating Environmental, Social, and Governance (ESG) principles into business strategies through the development of the Sustainable Financing Framework 2026. This step is part of Pegadaian’s transformation to expand its role as a financial institution not only focused on financial performance but also on creating long-term value for society and the environment.
This collaboration is a continuation of the signing of a Memorandum of Understanding (MoU) as part of the Indonesia-Japan Strategic Partnership Forum in March 2024. As a concrete implementation, Pegadaian and SMBC Indonesia have completed the refinement of the financing framework from the Social Financing Framework 2024 to the Sustainable Financing Framework 2026 with a more comprehensive scope. Thus, it not only covers social aspects but also green (environmental) and orange (gender equality, social inclusion, including women’s empowerment) aspects.
Pegadaian’s Director of Finance and Strategic Planning, Ferdian Timur Satyagraha, stated that this collaboration is a strategic step for Pegadaian in strengthening its role as an inclusive financial institution oriented towards sustainability. According to him, the refinement of the Sustainable Financing Framework 2026 is an important milestone in integrating sustainability principles into business strategies in a more comprehensive and measurable manner.
“We appreciate the support and close collaboration from SMBC Indonesia in the development of this framework,” said Ferdian.
Head of Wholesale, Commercial & Transaction Banking at SMBC Indonesia, Nathan Christanto, explained that through the refinement of Pegadaian’s Sustainable Financing Framework 2026, they hope to demonstrate SMBC Indonesia’s support for Pegadaian and the Republic of Indonesia in expanding access to sustainable financing while strengthening positive impacts on society and the environment. “This aligns with our commitment to continue supporting Astacita and President Prabowo Subianto’s development agenda, particularly in expanding sustainable financial access and strengthening the national financial industry ecosystem,” he said.
This collaboration also strengthens SMBC Indonesia’s position as a trusted banking institution with global capabilities and deep local understanding. This is reflected in SMBC Indonesia’s role in the refinement process of Pegadaian’s Sustainable Financing Framework 2026, ensuring that the financing framework can provide maximum contribution with measurable global standards for social and environmental aspects.
The Sustainable Financing Framework 2026 was developed in alignment with international sustainability principles and OJK regulations, including the Social and Green Bonds Principles issued by the International Capital Market Association (ICMA), the Social and Green Loan Principles issued by the Loan Market Association (LMA), and the Orange Bonds Principles initiated by the Impact Investment Exchange (IIX), which focus on women’s empowerment and gender inclusivity.
In its preparation process, Pegadaian’s Sustainable Financing Framework 2026 has also received a Second Party Opinion (SPO) from an independent party, Environmental Resource Management, which states that Pegadaian’s Sustainable Financing Framework 2026 aligns with those principles and covers fund uses that meet strong criteria in terms of relevance and impact generated.
Moving forward, Pegadaian and SMBC Indonesia remain committed to exploring various further collaboration opportunities in the field of sustainable finance, including Orange Loan financing, as well as developments in the gold ecosystem and more inclusive finance for the wider Indonesian society.