Pawnshops, Is Your Rating Up to Standard? OJK Set to Roll Out New Soundness Assessment Framework, Reports Due Every February

In 2024, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) issued Regulation No. 39 of 2024 on Pawnshops (“ Regulation 39/2024 ”), which, among other provisions, mandates the fulfillment of certain soundness level requirements by both conventional and sharia-based pawnshop companies (collectively referred to as “ Pawnshops ”) through the achievement of certain composite rankings (peringkat komposit– “ PK ”). [1] In order to implement this mandate, the OJK is currently completing work on a new Draft Circular (“ Draft Circular ”) that will ultimately detail procedures for the fulfillment of said soundness levels.