Insight

Pegadaian Sees Higher Loan Demand

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Algo Research Team


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Key Summary:


  • Outstanding loans +24% YoY in July
  • An indication of economic slowdown
  • Gold price or liquidity driven?

The Indonesian pawn shop industry saw a significant loan growth in the past 2 years after stagnating for much of 2021-2022. Typically, it is an alternative for low-middle income household to borrow money, where Pegadaian reportedly had around 24 million customers as per 2023.


Sector wide performance: Pegadaian loans saw sharp growth since mid 2023 and accelerated further in 2024, whereby loan outstanding stood at IDR 79.9 trillion in July 2024, up +24% YoY. 


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