Editor’s Note
- Economic Uncertainty: Why Is Mortgaging a Primary Solution for Indonesians?
- Mortgaging Remains Relevant Across Generations
- Pawnbrokers Prevent People from Falling into Illegal Lending Traps
- Loans at Pegadaian Starting from 50,000 Rupiah
- Pawn Gold Without Losing Your Assets
- Digitalization Increases Financial Inclusion for the Younger Generation
Economic Uncertainty: Why Is Mortgaging a Primary Solution for Indonesians?
Amidst the uncertain global economy, people need financial instruments that are not only safe but also offer immediate solutions without complicated procedures.
For over 124 years, Pegadaian’s mortgage services have been present not only as a financing service but also as a liquidity buffer that keeps the economy running for households and SMEs across the country.
Mortgaging Remains Relevant Across Generations
One of the main reasons why mortgages remain relevant across generations is their practicality. In the financial world, time is often the most crucial factor.
Consider, for example, a stockbroker who needs extra capital for tomorrow’s stocks, or a parent suddenly faced with high education costs and no time to wait for a loan application that can take days.
This is the experience of Pia (33), a tea shop owner and mother of one, who is currently busy searching for the best school for her child in Medan.
The increasing demands of life and rising education costs didn’t immediately cause Pia to panic, as she has been actively investing in gold since 2015.
“Since 2015, I started buying gold bars whenever I had some extra money, and gradually started saving gold with Pegadaian. I continued this habit until I got married and had children. If I need emergency cash, I can pawn my gold and repay it when I have the money. This way, I can meet my needs without losing my investment,” says Pia.
Pia also admitted that she never imagined the investment she had slowly built up would be worth as much as it is now.
“I really didn’t expect the gold price to rise so much. Besides saving for our children’s school fees, my husband and I are also considering opening our own shop using the gold we have as collateral,” Pia added.
Pawnshops prevent people from falling into the trap of illegal loans
At Pegadaian, people can hand over valuables like gold, jewelry, or electronics and receive money within minutes.
This speed prevents people from falling into the trap of illegal loans or loan sharks, who can strangle them with high interest rates.
Loans at Pegadaian start at 50,000 rupiah
When we spoke with him, Yohanis Wulang, head of the Medan region for PT Pegadaian, explained how Pegadaian supports the local economy.
“Pawn lending is definitely a flagship product, with the hope of boosting the local economy. When people need cash, they can immediately pawn their assets, such as gold, household appliances, and electronics, and repay them later without losing their assets. Pegadaian’s pawn services start with loans of 50,000 Indonesian rupiah, as a form of social service and an inclusive service that reaches all groups. The money can be used for daily necessities and even as start-up capital for SMEs,” says Yohanis.
The micro, small, and medium-sized enterprise (SME) sector is the backbone of the Indonesian economy. However, a classic obstacle for these businesses is access to working capital. This is where Pegadaian plays a strategic role. Many businesses use pawn schemes as “revolving capital.”
Pegadaian even regularly organizes the Gadai Peduli program, a 0% or interest-free pawn service, with loans ranging from IDR 50,000 to IDR 2.5 million. This is an expression of care and commitment to supporting the local economy, especially those in need.
Pawning Gold Without Losing Your Assets
Gold is chosen for its stable value and the safe haven it offers. By pawning gold, entrepreneurs obtain working capital without losing their investment assets.
Once the company generates a profit, the gold is repurchased. This cycle creates sustainable financial independence, where assets are not sold but can continue to generate productive capital.
Pegadaian continues to innovate even in the digital age. Through the Tring! app, the pawning process, previously synonymous with long lines at branches, is now accessible from your smartphone. Innovations like Gold Savings Pawn allow customers to pawn their digital gold balance instantly, without leaving their home.
“More and more people are realizing that gold is a safe, stable, and liquid investment. This is evident in the public’s enthusiasm for buying gold, not only physically but also in the form of gold savings accounts. At Pegadaian, people can easily and quickly save, pledge, and deposit their gold balance via the Tring! app, wherever and whenever they want. People of all backgrounds and ages now find it easier to transact and invest with Pegadaian,” said Mr. Yohanis.
Digitalization increases financial inclusion for the younger generation
Digitalization increases financial inclusion for the younger generation and the general public by ensuring that all segments of the population have equal opportunities for fair and transparent financing.
Pawning is also an effective tool for financial literacy. Customers learn about asset valuation and risk management. Thanks to transparent leasing fees and clear terms, customers are held accountable for managing their loans.
Through various products and services, Pegadaian continues to serve as a loyal friend to the community and a bridge to a more prosperous Indonesia, with the goal of making Indonesia GOLD. ***obs
