As Indonesia welcomed the New Year, PT Pegadaian received a special gift—an approval from the Financial Services Authority (OJK) to operate a bullion business. This approval, formalized in the letter S-325/PL.02/2024, allows Pegadaian to expand its services to include gold deposits, gold-backed loans, corporate gold custody services, and gold trading.

Damar Latri Setiawan, CEO of Pegadaian, expressed his enthusiasm for this new venture, marking the achievement as a milestone for the company after a two-year wait. Pegadaian is now the first company in Indonesia to receive this bullion business license.

“For 123 years, Pegadaian has continuously improved and provided various pawn and non-pawn products. We still see the majority of our business being in gold pawning, and this new development will support our growth,” Damar said.

The new venture aligns with recent comments by Indonesia’s Minister of State-Owned Enterprises, Erick Thohir, regarding the establishment of a Bullion Bank in Indonesia. Thohir expressed hopes for BUMN companies to collaborate in creating such an institution, which would promote the mass adoption of gold investment.

He emphasized that with a Bullion Bank, more people would be familiar with gold savings, and Pegadaian, with its existing gold investment services, could play a vital role in this development.

Supporting Pegadaian’s efforts, Deputy Minister of BUMN Kartika Wirjoatmodjo, or Tiko, praised Pegadaian’s readiness for this transformation into a bullion services provider. Based on recent studies, Pegadaian’s infrastructure—especially its gold storage facilities and extensive gold product offerings—positions it as a leader in this sector.

With over 90% of its pawning transactions backed by gold, Pegadaian already manages 92 tons of gold collateral, alongside 10.3 tons in gold savings accounts. Its subsidiary, Galeri 24, contributes to its success in growing this ecosystem.

The company’s entry into bullion services reflects its strategic focus on providing accessible, secure, and diverse gold investment options for the Indonesian public.

SOURCE: PRESSREALEASEKONTAN | PHOTO: PEGADAIAN