SEA: Indonesia : Perum Pegadaian

Pegadaian Personality

The Personality of Pegadaian is pictured in its mission and corporate culture. Since its foundation, Pegadaian has a mission.

1. To assist the government program in improving people’s welfare, particularly middle and low class people by providing the best financial solution through distribution of loans to micro and small-scale business.

2. To provide benefits for stakeholders and to consistently perform good corporate governance.

3. To engage in other business in the context of optimization of resources.

With a credo “Mengatasi Masalah Tanpa Masalah” (To Overcome Problems without Problems) Pegadaian implements a corporate culture called “Si Intan” as the acronym of word: Inovatif, Nilai Moral Tinggi, Terampil, Adi Layanan, and Nuansa Citra.

In facing the future which is full of challenges, all the management and staff of Pegadaian commits to realize the company’s vision is determined as followed: By the year 2012, Pegadaian shall become the “Champion” in micro and small financing based on pawn and fiduciary system for middle and low class society.

Pegadaian in Brief

The establishment of Bank Van Leening on August 20, 1746 marked the beginning of the history of pawn business in Indonesia, for this financial institution, which was founded by the VOC in the Dutch Colonization Era, had served loan under the basis of mortgage.

As the British took over the colonization of our country (1811-1816) they disbanded the bank and facilitated people who wanted to run this business provided that they had a license from the local government.

When the Dutch returned in command of the colony, they released staatsblad (stbl) No. 131 dated on March 12, 1901 regulating pawnshops as a state monopoly. On April 1, 1901 they founded the first state-owned pawnshop in Sukabumi, which later on celebrated as the Anniversary of Pegadaian.

Since the Independence Day of Indonesia, under the management of the government of Indonesia, Pegadaian has changed its status several times. Having been a State Company or Perusahaan Negara (PN) since January 1961, it altered its status to be a Service Company or Perusahaan Jawatan (PERJAN) based on Government Regulation (PP) No. 7/1669. Later through PP No. 10/1990 which has been renewed with PP No. 102/2000 the government changed its status to be a State Owned Company or Perusahaan Umum (PERUM) up to now.

Pegadaian has come to its centenary of age now. The lower and middle class society has gained all the utility of Pegadaian. Although it is obliged to carry the mission to serve the lowest class society, Pegadaian is still able to give significant contribution in the form of tax and profit shares to the government.

Excellent Services

“Pelanggan Nomor Wahid” or shortened as PELANGGAN NOW, is a program designed to meet the customer’s demand of excellent services.

Pelanggan NOW is a program in response and facing competition challenge of the pawn industry now and in the future.

Company Outlet

Pegadaian operates in all regions of Indonesia, from Sabang in the West to Merauke in the East, from Tahuna in the North and Sumba in the South.

Services

Safekeeping service

Safekeeping service is services rendered to the people desiring to entrust their valuable properties mainly those leaving their home for a long period, for instance pilgrimage and travel out of the city or students on vacation.

Valuation services

Valuation service is services rendered to the people desiring to find out the real value of properties like gold, diamonds, precious stones, etc.

Property

To optimize the use of non-productive assets, the company constructs buildings for rent both on self-funding and through corporation with third party under Build Operate and Transfer (BOT) and Operation Coorporation Agreement (KSO) system.

Auction service

Pegadaian’s subsidiary PT. Balai Lelang Artha Grasia deals with auction services to hold a public sale in accordance with the prevailing rules and legislations.

KUCICA (Money order in instant, quick and save way)

Service provided for community which to remitted or take consignment of money through Pegadaian. This service is provided by Pegadaian in corporation with Western Union.

Building Rental

Pegadaian also provides buildings for rent that is Langen Palikrama Building, Serba Guna Building, Harco Pasar Baru and Kenari Baru Building.

Langen Palikrama Building and Serba Guna Building are used for many purposes such as wedding parties, wedding ceremonies, meetings, reunion meetings, seminars, conferences, graduations, exhibitions, anniversaries, fashion shows, halal bihalal, and other meeting events.

Capacities of Langen Palikrama Building can reach 1200 persons, while the capacity of the Serba Guna Building can reach 300 persons. Harco Pasar Baru and Kenari Baru Building is rentable for shop activities.

Credit Services

Kredit Cepat Aman (KCA)
KCA or Safe Fast Credit is a loan based on pawn rules with a safe, easy and quick procedure. Collateral as guarantee covers gold jewelleries/precious stones, vehicle (car/motorcycle), electronic, fabric and other home appliances.

The credit plafond starts from Rp. 20.000 up to Rp. 200.000.000 with a maximum service fee of 1.45% per 15 days and a maximum credit term of 4 months. However, it could be extended by instalment methods or by repeating the pawn credit and could be paid at any time with proportional interest calculation at credit items.

Gadai Syariah (RAHN)
Rahn is a pawn service product based on the sharia principle referring to a modern administration system.

The credit plafond is similar with Safe Fast Credit (KCA), however the difference is on the interest calculation method. Administration fees in sharia-based pawn are paid in advance. When starting a new credit/extended credit, the minimum fee is Rp. 1.000 and maximum Rp. 60.000 for the maximum loan of Rp. 200.000.000.

The charge for ljaroh fee is Rp. 80 per days credit period for every multiple of Rp. 10.000 from the appraisal of collateral.

Ar Rahn Credit for Micro Business (ARRUM)
To fulfil the market necessity on Sharia basis business credit, Ar Rahn credit for micro entrepreneur (Arrum) launched a credit scheme which is equal to Kreasi.

Mulia
Mulia is a gold sale scheme offered by Pegadaian for the public through cash or instalment for a certain period. Mulia is a Sharia product launched in 2008 and during its first year, this product received good response from customers and until now, it was sold about 40 kg of gold.

Kredit Angsuran Sistem Fidusia (KREASI)
Kreasi of Fiduciary-base credit is an extended loan to micro-small-sized business (for business development) with fiduciary security scheme and instalment repayment basis with a credit term of 12 up to 36 months.

The credit procedure is submitted by the Motor Vehicle Owner Book (BPKB) as collateral with the interest fee of 0.9% per month, flat.

Kreasi is a modified old product, formerly known as Pegadaian Business Feasibility Credit.

Kredit Angsuran Sistem Gadai (KRASIDA)
Krasida or Pawn System Installment Credit is a loan extended to micro-small-sized business (for business development on pawn basis). The repayment is made on instalment basis with the credit term of between 12 to 36 months and the customer will get interest discount if the credit is paid all at once. The interest rate is 0.9%, flat.

Household Enterpreneur Credit (Krista)
Since June 2006, Pegadaian has been launching Krista for female entrepreneurs, which was joined together as an association. Credit plafond is a minimum of Rp. 100.000 and a maximum of Rp. 10.000.000 with a credit term of 12 months. The interest rate is 1% per month, flat.

Swadaya Housing Credit (Kremada)
Kremada was launched in December 2006 and is aimed for the low production society to build or repair their houses. For building a new house the maximum credit given is Rp. 10.000.000, while repairing of houses is given a maximum credit of Rp. 5.000.000. On this credit, customers will impose a prepaid 9% administration fee and no interest rate. Financing of this product is in cooperation with the Ministry of Public Housing (Menpera).

Kredit Tunda Jual Gabah (KTJG)
Kredit Tunda Jual Gabah or Suspended Credit of unhulled paddy is extended to farmers with dried milled unhulled paddy as collateral. The credit service is aimed at supporting farmers for post-harvest to avoid price fluctuation pressure at harvesting period and the pricing set by brokers.

Pawn Mortgage (Investa)
Pawn mortgage is extended loan to community with the guarantee in form of stock with the pawn system.

Partnership & Community Devleopment Program

1. Partnership Program provides working capital loan with low interest rate and grant to increase managerial capacity, production and marketing of products from small-sized business and cooperative nearby Pegadaian’s locations, in accordance with the maximum amount set in Ministerial Decree of BUMN No. Kep-236/MBU/2003 dated June 17, 2003.
2. Community Development Program amongst other things is distributing relief for house of worship construction, public facility, environmental facility and infrastructure, health facility for the people living around Pegadaian locations and relief of natural disaster’s victims occurred in some regions.

Corporate Social responsibility (CSR)

CSR refers to all relations between the corporate and all of stakeholders, including customers, employees, communities, owners, government, suppliers and even competitors. CSR is a concept where Pegadaian voluntarily gives contribution for a better community and environment.

Human Resources

Number of employees

Number of employees of Perum Pegadaian as of December 31, 2008 are 9.695 persons, covering 5.884 permanent employees and 3.811 outsourcing employees working at the head office, regional offices and branch offices. Relative to the number of employees as per December 31, 2007 of 7.478 persons, the quantity is increased for 2.217 persons (29,65%), from newly recruited employee (D.1, D3 and S.1) to fulfil the employment demand in relation to the opening of new branches, launching of new products and replacement of resigned employees.

Human Resources Development

In the framework of increasing human resources quality and motivation as well as supporting professionalism, during 2008 the company has issued costs of Rp 12.124 million for numbers of internal and external education programs either for carrier education, profession education, skilled or various courses, training, tutorial, seminar, workshop and management and technical training as per the demand of the company.