Pegadaian aims for 18% increase in revenue

JAKARTA. State-owned pawn shop PT Pegadaian is aiming to increase its revenue by 18.6% to Rp 8.3 trillion (US$658.2 million) this year from Rp 7 trillion last year, driven by a forecast growing number of customers.

Pegadaian president director Suwhono said on Monday that he estimated Pegadaian’s customers would hit 43 million this year, a 15% increase from its number of customers last year.

“We are upbeat that by carrying out lucky-draw programs four times this year, we will have more customers,” he said, adding that his firm previously carried out the program only twice a year.

With higher revenue, Pegadaian also aimed to see a 9.37% increase in its net profits to Rp 1.75 trillion this year from Rp 1.6 trillion last year, he went on.

Suwhono said that his firm would also develop a multi-payment service to help diversify the company’s revenue sources.

The multi-payment service, which enables the public to pay electricity, water and phone bills through Pegadaian, currently accounts for a small portion of the firm’s total revenue.

The pawn business makes up between 80% and 90% of the firm’s total revenue. However, pawn transactions dropped by Rp 100 billion or 3% during Christmas and Idul Fitri holidays last year compared to the same periods in 2013.