Jakarta. State-run pawnshop Pegadaian recorded Rp 5.85 trillion ($355.9  million) in profit throughout 2024, up by 33.7 percent from Rp 4.38 trillion ($266.4 million) recorded the previous year.

Pegadaian’s assets also grew by 24.2 percent from Rp 82.59 trillion ($5 billion) in 2023 to Rp 102.62 trillion ($6.2 billion) the following year. Its outstanding loan stood at Rp 85.38 trillion ($5.2 billion), up by 26.3 percent from Rp 67.57 trillion ($4.1 billion) last year. Pegadaian’s non-performing loans (NPL) also dropped from 0.85 percent in 2023 to 0.63 percent the following year.

These figures caused Pegadaian’s return on asset (ROA) to reach 6.21 percent as well as 17.23 percent in return on equity (ROE). Pegadaian also reported higher efficiency in its operations, as indicated by 63.75 percent in operational efficiency ratio throughout 2024. This is the lowest operational efficiency ratio that the company has ever gotten in several years.

According to Pegadaian’s president director Damar Latri Setiawan, this year marks the company’s 124th anniversary.  The company also vows to continue expanding its gold ecosystem as gold investment is rising in popularity.

“We are committed to continue transforming and providing the best products and services for Indonesians, especially with our bullion services. Hopefully, it will make it easier for people to invest with Pegadaian,” Damar said.

In late 2024, Pegadaian became the first Indonesian company to snag a bullion service license from the Financial Services Authority (OJK). The bullion service permit includes 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.