Using This Approach, Pegadaian and SMBC Indonesia Strengthen ESG Principles

PT Pegadaian (Pegadaian) together with PT Bank SMBC Indonesia Tbk (SMBC Indonesia) is strengthening its commitment to integrating Environmental, Social, and Governance (ESG) principles into its business strategy 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 that is 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 2026. As concrete evidence, Pegadaian together with SMBC Indonesia has completed the refinement of the financing framework from the Social Financing Framework 2024 to the Sustainable Financing Framework 2026 with a more comprehensive scope. Furthermore, this collaboration not only covers social aspects but also green (environmental) and orange (gender equality, social inclusion, including women’s empowerment) aspects. Director of Finance and Strategic Planning of PT Pegadaian, Ferdian Timur Satyagraha, stated that this collaboration is a strategic step for Pegadaian in strengthening its role as an inclusive financial institution that is also oriented towards sustainability. “The refinement of the Sustainable Financing Framework 2026 becomes an important milestone in integrating sustainability principles into business strategy in a more comprehensive and measurable manner. We appreciate the support and close collaboration from SMBC Indonesia in the development process of this framework,” he said in his statement, quoted on Monday (11/5/2026). On the other hand, Head of Wholesale, Commercial & Transaction Banking at SMBC Indonesia, Nathan Christanto, added that through the refinement of Pegadaian’s Sustainable Financing Framework 2026, they hope it serves as evidence of 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 is in line with our commitment to continue supporting Astacita and President of the Republic of Indonesia Prabowo Subianto’s development agenda, particularly in expanding sustainable financial access and strengthening the national financial industry ecosystem,” he explained. Thus, 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 focuses on women’s empowerment and gender inclusivity. In its preparation process, Pegadaian’s Sustainable Financing Framework 2026 has also obtained a Second Party Opinion (SPO) from an independent party, Environmental Resource Management, which states the alignment of Pegadaian’s Sustainable Financing Framework 2026 with these principles and covers the use of funds that meet strong criteria in terms of relevance and impact generated. In the future, both 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.