The company’s rapid growth has created demand for outside capital. A deal with Japanese bank SMBC is already in place, and now the firm is seeking additional partnerships. “We would welcome similar investment from U.S. and other investors,” says Setiawan. “Global partners who bring complementary capabilities in financial security or digital infrastructure would find a natural fit here.”

Around 90 percent of Pegadaian's collateral is gold, and the company is building a full ecosystem around the metal. In 2025, it became the only institution in Indonesia formally designated as a gold bank, offering savings and deposits, working capital loans, trading and custody under one roof. A subsidiary manages the full supply chain, from raw material through to minting and purification.  

That reflects the company’s wider network. Since 2021, Pegadaian has operated within the Ultra Micro holding alongside state lender BRI and microfinance institution PNM. The arrangement gives Pegadaian access to BRI’s branches and balance sheet, while BRI and PNM customers gain access to Pegadaian's products. “Our network is the foundation,” says Setiawan. “MSMEs choose Pegadaian because access is fast, requirements are minimal and financing is affordable.”

In this interview, Setiawan discusses Pegadaian’s digital transformation, support for medium and small business and plans for international expansion. 

Q: How is digital transformation shaping how Indonesians access Pegadaian's services?

Latri Setiawan, president director: We have adopted the latest technology across all our systems to make it easier for communities to engage with our products. Our application, SAPA, is designed specifically to connect citizens to the full range of Pegadaian programs. The digital transformation that began in 2017 has been a direct driver of growth—more customers can now access our services conveniently, and our human resources are fully aligned with this shift in service and marketing.  

In 2025, Pegadaian recorded exceptional performance, with growth exceeding 42 percent. That growth was supported by three factors: rising gold prices, which naturally increased our loan volumes; the accessibility created by digital transformation, which drew in a significantly higher number of customers; and the readiness of our people to execute in this new environment.  

Q: Are there opportunities for global partners to work with Pegadaian?  

LS: Pegadaian is growing rapidly, and with that pace of growth comes a need for liquidity. Our internal funding has been maximized, and bank borrowing is subject to legal lending limits. We are therefore open to foreign capital. We already have a collaboration with a Japanese bank, SMBC, and we would welcome similar investment from U.S. and other global investors—whether in the form of capital or technology, particularly in security infrastructure.  

Our technology base is strong and scalable. The platform and systems we have built are ready for expansion, and global partners who bring complementary capabilities in financial security or digital infrastructure would find a natural fit here.  

Q: What role does Pegadaian play in supporting MSMEs and Indonesia's economic inclusion goals?   

LS: Pegadaian offers loans starting from as little as IDR 50,000 with no upper limit, but our average loan is around IDR 5 million—precisely aligned with the needs of micro, small and medium enterprises. MSMEs choose Pegadaian because access is fast, requirements are minimal and financing is affordable. A customer simply brings their collateral and funds can be released in a very short time. That speed and simplicity are impossible to replicate in traditional credit systems that require extensive documentation.

Indonesia is also blessed with a large, self-sustaining domestic market. MSMEs produce goods and the Indonesian population buys them, creating a highly resilient economic circulation. Any product or service designed for mass participation in this market performs well. We are a net positive in this ecosystem—we convert need into demand and grow the market while serving people.  

Q: Pegadaian has expanded into Timor-Leste—are there further international ambitions?  

LS: A government-linked pawnshop of this kind is unique to Indonesia; overseas, pawnshops are typically private. Our international expansion follows BRI's global footprint, and Timor-Leste was a natural first step given BRI's presence there. Our technology platform is ready for this kind of expansion. Going forward, we could extend to wherever BRI operates—Hong Kong, Singapore and beyond—either as a co-located service within BRI branches or as a standalone entity where conditions allow.  

Q: Why should global investors consider Indonesia?   

LS: Indonesia has the fourth largest population in the world—a large and growing domestic market where any product or service aimed at the masses performs well. The country's economic fundamentals are strong, underpinned by an economy that works from the population, for the population. Research by JETRO suggests investing in Indonesia can deliver profitability of around 60 percent. GDP growth has been sustained at roughly 5 percent for seven consecutive years.  

The combination of a young, expanding population, rising financial inclusion, strong digital infrastructure investment and a government committed to structural reform creates a compelling environment for long-term investment. For Pegadaian specifically, the opportunity is to serve a market where financial inclusion remains underpenetrated—converting communities that have historically relied on informal credit into customers of a modern, gold-backed financial ecosystem.