Pawnshops, Is Your Rating Up to Standard? OJK Set to Roll Out New Soundness Assessment Framework, Reports Due Every February

In 2024, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) issued Regulation No. 39 of 2024 on Pawnshops (“Regulation 39/2024”), which, among other provisions, mandates the fulfillment of certain soundness level requirements by both conventional and sharia-based pawnshop companies (collectively referred to as “Pawnshops”) through the achievement of certain composite rankings (peringkat komposit – “PK”).[1] In order to implement this mandate, the OJK is currently completing work on a new Draft Circular (“Draft Circular”) that will ultimately detail procedures for the fulfillment of said soundness levels.