From traditional to digital: Managing public trust through innovative gold pawn regulation and governance

Abstract

Background: Technological changes and the demand for digital-based financial services have driven the gold pawn industry in Indonesia to undertake innovative governance and regulatory transformations to address the public's need for safe, fast, and transparent access to financing. Methods: This study uses a normative legal research approach that analyzes the synchronization of regulations, corporate governance principles, and harmonization of legal norms related to the digital gold pawn business by applying legal document analysis. Findings: The study results show that the implementation of digitalization expands the reach of services and improves operational efficiency. However, regulatory synchronization, data security, transaction validity, and consumer protection remain key challenges that require continuous policy adaptation. Conclusion: Strengthening adaptive governance and responsive regulatory updates are key to maintaining public trust in digital gold pawn services. Collaboration between regulators, industry players, and public education is crucial to support financial inclusion and protect public interests. Novelty/Originality of this article: This study offers a comprehensive analysis of the harmonization of regulations for the gold pawn business in the digital era, highlighting the need for legal protection and technology-based governance strategies, and emphasizing the relevance of digital literacy for the sustainability of the pawn industry in Indonesia.