OJK Finalizes Regulations on Pawnshop Assessment

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is currently finalizing the Draft Circular on the Assessment of the Soundness Level of Pawnshop Companies and Sharia Pawnshop Companies (“ RSEOJK ”). This regulation serves as a technical implementation of OJK Regulation No. 39 of 2024 on Pawnshops, as amended by Regulation No. 29 of 2025 (collectively referred to as “ POJK 39/2024 ”), and aims to strengthen governance, risk management, and the stability of the pawnshop industry, both conventional and sharia-based.

“This regulation is mandated by Article 196 paragraph (3) and Article 203 paragraph (8) of POJK 39/2024. Among other things, it regulates the procedures for assessing the soundness level (tingkat kesehatan/TKS) of companies on an individual basis, the updating of TKS assessments of a company, action plans, reporting, as well as verification and validation by OJK,” said Agusman, Chief Executive of the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions at OJK, in an interview with Hukumonline.

Based on the RSEOJK possessed by Hukumonline, the OJK will require every pawnshop company to conduct an annual self-assessment of its soundness level by using a risk-based approach. Several key provisions are also emphasized, including the obligation to maintain a minimum equity according to the scope of business operations, minimum equity-to-paid-up capital ratio of 50%, a maximum net non-performing loan ratio of 5%, and a minimum liquidity ratio of 120%.