Ibrahim Adam

As a state-owned enterprise, Pegadaian has a long history which began in the 18th century when Vereenigde Oost Indische Companies (VOC), established Bank Van Leening, a credit institution extending on pawning system. Then the Dutch government issued Staadsblad no 131 dated 12th March 1901 that principally govern that establishment of pawnshop was monopolized and only government runs such business. In accordance with this law, the first state pawn shop was established in Sukabumi (West Java) on 1st April 1901.Thus, each 1st April is the anniversary of Pegadaian. Now, Pegadaian has transformed as a business entity which not only gives loans based on pawn but also other profitable business Until the end of 2008 there are more than 2027 Pegadaian branches spread across the Indonesian archipelago. The logo of Pegadaian the scales of justice. Pegadaian's motto is 'overcoming problems without problems'​. Many branches now offer an Islamic Sharia service where the administration fee is charged and a complex tariff formula used to avoid charges of usury. This service was introduced in 2003 and so far has attracted 760,000 customers. As a state-owned enterprise besides acting as business entity, Pegadaian also has an obligation to support government program in the effort to increase mid to low class society welfare through main activity of pawning credit distribution. Both activities make Pegadaian a unique business entity. Conventional model of Pegadaian has operated since 1901. The first branch office in Sukabumi, west Java. Until the December 2008 there is more than 1.901 branches. Progress information about Pawn Business of Pegadaian until December 2008 : Brancess : 2027 (included sharia brancess) Financing : US $ 3.3 billion Pledges : 23,792,727 unit Customer : 16,516,611 people