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View all search resultsOJK to release private pawn business regulation in January
The Financial Services Authority (OJK) (ojk
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The Financial Services Authority (OJK) (ojk.go.id) (OJK) (ojk.go.id)
The Financial Services Authority (OJK) (ojk.go.id)
The Financial Services Authority (OJK) is planning to regulate private pawn businesses to create pawn business practices that are safer for the public.
OJK's executive head for non-banking financial institutions (INKB) Firdaus Djaelani said the OJK would release an official OJK Regulation (POJK) on private pawn shops in January 2016.
"We hope that [the regulation] will be [implemented] in January. Currently, there are so many unofficial pawn shops," said Firdaus on the sidelines of a book launch at this office in Jakarta on Monday.
To protect the public from irresponsible actions of unofficial pawn shops, the OJK will require private pawn shops to register their businesses.
Firdaus said the POJK would regulate how much capital a private pawn shop should prepare and other matters about their locations and experts. He refused to give details about the regulation. "All will be set in the POJK," he added.
Firdaus further said that in the first stage of the implementation, his office would cooperate with stated-own pawn shop PT Pegadaian to guide private agents. "According to Pegadaian data, around 4,000-5,000 private agents should be further regulated," Firdaus said.
Indonesian Life Insurance Association (AAJI) executive director Benny Waworuntu supported OJK breakthroughs. Many Indonesian people would rather use pawnshops services than other financial institutions due to their lack of financial literacy.
"People are more familiar with pawnshops than financing or pension funds and capital markets," he said.
Benny further said the proportion of financial literacy on insurance stood at only 18 percent, while the utility remained low, standing at 12 percent.
On the other hand, the utility of banking was higher than financial literacy, he said.
"Banking financial literacy stands at 22 percent, while utility is 57 percent. It means that most people use banking services only for saving and salary transfers," Benny said. (ebf)
