TEMPO.CO, Jakarta - The Financial Services Authority (OJK) head Tongam L Tobing reminded electronic up to gold stores to not providing pawn service as it required a license from the authority.

“Handphone (cellular phone) stores are no longer allowed to offer pawn service, as well as gold stores,” said Tongam at his office, Jakarta, Thursday, Oct. 31. He added that entrepreneurs willing to open the service must possess a license and propose a registration in the agency.

According to Tongam, his agency was determined to organize the pawn industry in a bid to prevent consumers from falling to victims and being harmed.

Official pawnshops, he added, were also required to hire pawn estimators and uphold transparency on interest rates. “They must also have clear working hours and a legal entity, either a corporation or cooperation.”

Tongam said the provisions on pawn business were stipulated in OJK Regulation which had been released in 2016. However, the policy was not valid immediately due to the licensing period until July 2019.

“[Stores] that have not been registered [for pawn license] after the period are considered illegal,” Tongam said, adding that unregistered business would be terminated and closed.

As of date, a total of 70 private pawnshops - other than PT Pegadaian - had been registered in OJK. The data on legal business was accessible in the authority’s official website.

CAESAR AKBAR