Regulatory AlertsOJK Regulation No. 39 of 2024 on Pawnshops
The Indonesian Financial Services Authority (OJK) issued Regulation No. 39 of 2024 to establish a comprehensive legal framework for the pawnshop industry, aligning it with the Financial Sector Development and Strengthening Law. The regulation mandates minimum paid-up capital based on operational scope, requires at least one appraiser per branch, and sets a minimum 51% loan-to-goods ratio for traditional pawn activities. It also introduces provisions for converting to Sharia-compliant operations, establishes minimum equity and health standards, and repeals the previous 2016 regulation effective December 27, 2024.
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