The Rise of Private Pawnshop Business
The private pawnshop business is increasing. The Financial Services Authority (OJK) noted that private pawnshop financing in the first half of 2019 soared 26.6 percent to Rp 304 billion from Rp 240 billion in the same period a year earlier. The increase is in line with the increasing number of private pawnshops licensed by OJK, topping 68 companies in June 2019 from only 14 a year earlier.
However, only 23 companies have reported their performance to OJK, which means the actual private pawnshop financing could be more than Rp 304 billion in the first semester. As quoted by Kontan, OJK's Special Financial Institution Supervision Director Supriyono said private pawn financing is estimated to exceed the Rp 600 billion figure by the end of this year.