Jakarta. Pegadaian and Bank SMBC Indonesia have strengthened their commitment to integrating Environmental, Social, and Governance (ESG) principles into their business strategies through the development of the Sustainable Financing Framework 2026. The initiative marks part of Pegadaian’s transformation to expand its role as a financial institution that focuses not only on financial performance, but also on creating long-term value for society and the environment.

The collaboration follows the signing of a Memorandum of Understanding (MoU) during the Indonesia-Japan Strategic Partnership Forum in March 2026. As a concrete implementation of the partnership, Pegadaian and SMBC Indonesia have completed the enhancement of the Social Financing Framework 2024 into the more comprehensive Sustainable Financing Framework 2026. The updated framework now covers not only social aspects, but also green (environmental) and orange principles, which include gender equality, social inclusion, and women’s empowerment.

Pegadaian Finance and Strategic Planning Director Ferdian Timur Satyagraha said, “This collaboration marks a strategic step for Pegadaian in strengthening our role as an inclusive financial institution that is also oriented toward sustainability. The enhancement of the Sustainable Financing Framework 2026 is an important milestone in integrating sustainability principles into our business strategy in a more comprehensive and measurable way. We appreciate the support and close collaboration from SMBC Indonesia throughout the development process of this framework.”

SMBC Indonesia Head of Wholesale, Commercial & Transaction Banking Nathan Christanto added, “Through the enhancement of Pegadaian’s Sustainable Financing Framework 2026, we hope this will demonstrate SMBC Indonesia’s support for Pegadaian and the Republic of Indonesia in expanding access to sustainable financing while strengthening positive impacts on society and the environment. This is aligned with our commitment to continue supporting Astacita and the development agenda of President Prabowo Subianto, particularly in expanding sustainable financial access and strengthening the national financial industry ecosystem.”

The collaboration also reinforces SMBC Indonesia’s position as a trusted banking institution with global capabilities and deep local understanding. This is reflected in SMBC Indonesia’s role in refining Pegadaian’s Sustainable Financing Framework 2026, ensuring the financing framework can deliver maximum contribution with measurable global standards for both social and environmental aspects.

The Sustainable Financing Framework 2026 was developed in alignment with internationally recognized sustainability principles and regulations issued by the Financial Services Authority (OJK). These include the Social Bond Principles and Green Bond Principles issued by the International Capital Market Association (ICMA), the Social Loan Principles and Green Loan Principles issued by the Loan Market Association (LMA), as well as the Orange Bond Principles initiated by the Impact Investment Exchange (IIX), which focus on women’s empowerment and gender inclusivity.

During the development process, Pegadaian’s Sustainable Financing Framework 2026 also received a Second Party Opinion (SPO) from independent firm Environmental Resource Management, which confirmed the framework’s alignment with these principles and stated that the use of proceeds meets strong criteria in terms of relevance and measurable impact.

Going forward, Pegadaian and SMBC Indonesia said they remain committed to exploring further collaboration opportunities in sustainable finance, including Orange Loan financing, the development of the gold ecosystem, and broader financial inclusion initiatives for the Indonesian public.