JAKARTA (TheInsiderStories) – Indonesian state-owned pawnshop, PT Pegadaian has budgeted Rp500 billion (US$35.46 million) to be invested in financial technology (FinTech) companies this year, the director said Monday (09/30). The company is targeting the digital firm engaged in consumptive and productive services, one of that is peer-to-peer lending to develop its products.
“We are still new, so I don’t dare to immediately run faster. I have to evaluate whether it will be okay because there are also many FinTech companies whose performance not good,” the CEO Kuswiyoto told reporters yesterday.
He went on that the company is currently eyeing three to five FinTech firms. Currently, Pegadaian is still in the process of exploring to be able to invest in digital business, which is targeted to be completed by the end of the year.
In terms of capital, the company has strong cash flows to finance the program in the following years. Recently, the company has issued local bonds worth Rp3.5 trillion with coupon rates in the range of 5.80 to 7.10 percent with tenure of between 370 days to five years.
Pegadaian also issued Shariah Medium Terms Notes (MTN) worth of Rp500 billion with tenure of three years and coupon rate at 7.0 percent. This year, Pegadaian still has an additional plan to issue local bonds around Rp2.5 trillion and Shariah MTN up to Rp2 trillion for business expansion and debt refinancing.
In the first half of this year, the company recorded a profit increase of 11.7 percent to Rp1.53 trillion, from Rp1.37 trillion in the same period year earlier. Kuswiyoto said the company had succeeded in donating Rp1.4 trillion for the country’s foreign exchange.
In line with the profit growth, the pawnshop’s assets also rose 6.25 percent to Rp56.09 trillion over the same period last year of Rp 52.79 trillion. Currently, the company has 12.1 million customers.
To maintain the growth rate, Pegadaian will continue to boost the development of digital applications so the customers will be able to make transactions easier and faster. In the future, the company will continue to be transformed to remain relevant in digital development, Kuswiyoto stated.
He adds the company continues to collaborate with several state-owned enterprises to synergize its business. On Monday the company signed a memorandum of understanding to collaborate with 10 state own companies in marketing and selling products. The cooperation includes the utilization of resources, products, services and network development for services and superior products.
They are PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Telekomunikasi Selular, PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Finarya (LinkAja), PT Sang Hyang Sari, PT Asuransi Jasindo, PT BGR, PT Pupuk Indonesia, Perum Produksi Film Negara, and Perum Bulog.
“Currently, Pegadaian has 8,200 agents, 4,200 outlets, 2,200 sales forces, and 800,000 digital pawnshop users. The pawnshop has channeled Rp34.6 billion for environmental development, which is channeled in the natural disaster sector, education and training, health, public facilities, and religious facilities,” Kuswiyoto ended.
Written by Lexy Nantu, Email: email@example.com