TEMPO.CO, Jakarta - The Financial Services Authority (OJK) warned the public to be cautious in pawning their belongings, especially at private online pawn shops due to a lack of legal framework. "There is a huge risk [in online pawn shops]," said Anto Prabowo, OJK’s Director for Educational Policy Development and Consumer Protection on Thursday September 3, 2015.
Anto said that Government Regulation No. 103/2000 only acknowledges PT Pegadaian, a state-owned pawn company, as the only legal pawn shop.
The notion to regulate private-owned pawn shops has been discussed for some time, it has even included in the National Legislation Program (Prolegnas) in 2010.
Private pawn shop is considered to be a rapidly growing business, especially with the exposure of online media. Pinjam.co.id is the first few online pawn shops that provided online pawn services in Indonesia.