PT Pegadaian (Persero) aims to be the most valuable finance company in Indonesia and also to become Indonesia’s first choice agent of financial inclusion. The road map in achieving those company goals comes with challenges such as changes in organization culture and capabilities, changes in regulations, emergence of innovative and new business models and opportunities, and the digitalization wave.

Pegadaian has enjoyed a monopolistic market since its establishment in 1901. In 2016, the Financial Service Authority (OJK) issued regulations opening the pawn broking business to the public. Pegadaian has to compete in a free market against private pawnbrokers. Pawn broking business itself is a sunset business as the growth of new customers is declining.

Pegadaian also faced challenges from banks and other financial institutions that give very competitive rates for their lending. The use of technology, both by existing financial companies or new Fintech entities, makes speed of credit disbursement very competitive and Pegadaian is also very prone to disruptions.

With such challenges, transformation is deemed necessary and inevitable for the business to perform. There are five dimensions of Pegadaian’s transformation that are translated into company’s initiative strategy; Grow core business, Grab new opportunities, Groom talent, Gen-Z technology and Great culture. While the business runs as usual in the headquarters, Pegadaian has its own Transformation Office for acceleration towards becoming an agile organization. It adapts start up way of work where it provides flexible working time, open space co-working place, project based Objective Key Results (OKR) as performance measurement tools, and also more customized development plan where it encourages learning, sharing and networking with other digital financial companies.

Pegadaian has adjusted the title of its job positions in the organization into a more standardized corporate title. This is one of the efforts taken in order to gain a better view at how Pegadaian’s employee benefits compare to the market in general and specifically amongst other financial companies. This will also support the company’s talent management pipeline as Pegadaian starts to include Professional Hire and Management Development Program in order to narrow the gap towards transformation. Apart from salaries, Pegadaian offers allowances for annual leave and religious holidays. It also offers annual bonus subject to company’s performance. It also provides medical and pension coverage for employees. Pegadaian has begun efforts to make its remuneration towards the standards of financial companies.

The main focus of employee engagement in Pegadaian is building a strong internal communication channel. It has an internal app that supports interaction exchange between employees such as news sharing, lite survey recognition, as well as chatting. The app is called The Gade Share and Learn or also known as Gashela. Gashela is also a learning platform as it easily distributes company- related news and events. Everyone in the company can conveniently access it from their smartphones and feel that they are part of the community. Apart from Gashela, Pegadaian annually conducts awards such as Pegadaian Innovation Awards, Pegadaian Excellence Awards, and Pegadaian Sales Awards where it institutionalizes acknowledgement to the employees. Pegadaian also has a company “Employee Gets Customer” initiative where it places employees as brand ambassadors for the company. The purpose of this initiative is not solely to increase business performance but also to instill a sense of belonging to the employees so that they can start educating their family and friends about the company they work for.

In order to adapt to changes in the business, the transformation in Pegadaian is not only in the way it does the business but also targeting the employee mindset and culture. It needs culture that fits, adds value, and supports the company’s business performance in order to achieve its vision. Late last year, Pegadaian launched a set of company values called G-Values. It incorporates 5 values with the description as follows:

  • Integrity: Honesty, objectivity, and consistency in what we think, say, and do.
  • Professional: Aspiration to self-equip with the competencies needed to perform role effectively & efficiently.
  • Mutual Trust: Encouraging transparency, mutual respect, and spirit of collaboration.
  • Customer Focus: Providing the best service for customers both internal and external and putting customer expectations first.
  • Social Value: Giving added value to the community in every action taken.