From business legitimacy to risk management fragmentation of regulations on gold bar trading at Pegadaian

Abstract

Background: Gold bar trading by PT Pegadaian has grown rapidly in line with Pegadaian's transformation from a pawn-based financing institution to a gold-based financial service provider. However, this development has not been fully accommodated by an integrated regulatory and governance framework, giving potential risks of legal uncertainty and violation of consumer protection. Methods: This study uses a normative legal research method with a statutory, conceptual, and analytical approach through a literature review. Findings: The results show that although POJK No. 39/2024 and POJK No. 22/2023 have provided business legitimacy and a basis for consumer protection, the regulation of gold bullion trading is still sectoral and tends to emphasize administrative compliance rather than substantive investment risk control. Conclusion: It is concluded that Pegadaian's gold bullion trading is in a governance grey area due to regulatory fragmentation and weak risk management integration. Novelty/Originality of this article: The novelty of this research lies in the formulation of the concept of integrated risk and consumer governance as a direction for strengthening the regulation and governance of gold bullion trading at PT Pegadaian.