Jakarta. State-owned pawnbroker Pegadaian announced that its gold deposit service was increasingly popular among Indonesians.

As of Jan. 2025, the combined gold deposit balance has reached 118 kilograms. The gold savings balance has also hit 10.33 tons by the end of 2024.

"Our bullion business activities are well-received by the public. Thanks to the hard work of our employees and extraordinary loyalty of our customers, we are able to enter the bullion sector. This makes us the first company in Indonesia to carry out bullion business activities," Pegadaian's marketing and product development director Elvi Rofiqotul Hidayah said. 

Gold deposits, which are available on the Pegadaian Digital app, give people an attractive investment option. The product offers a standardized gold storage ran by Pegadaian based on an agreement between the company and the customer. It offers a safe storage with insurance, flexible deposit terms, and a 1 percent annual return. To use this gold deposit service, customers must have a Pegadaian Gold Savings account. They must also upgrade to a premium account on the Pegadaian Digital App version 6.1.0, and make a minimum transaction of 5 grams.

Earlier this week, Pegadaian also held a kick-off event for its bullion business with its employees from across the country. The company plans on to promote its bullion service through various activities, including Pegadaian Goes to Campus at The Gade Creative Lounge located in a number of Indonesian universities.

“Pegadaian will soon hold a series of events to introduce the Bullion Business and further increase public awareness and understanding, especially among students, about investment and the benefits of bullion services in Indonesia,” Elvi said.

Late last year, the Financial Services Authority (OJK) granted Pegadaian the bullion business permit. This license allows Pegadaian to conduct bullion business activities, including gold deposits, gold working capital loans, corporate gold deposit services, and gold trading. Pegadaian also has a robust infrastructure for bullion services, starting from the storage of pawn collateral of which 90 percent is gold, the largest international-standard gold storage room, as well as a variety of gold products. 

These bullion services are expected to make it easier for people to invest in gold.