Increasing the risk of fraud

Oct 13, 2025 by talynt.org 90 views

Internal Control System for Credit Distribution at PT. Pegadaian (Persero) Regional Office I Medan: Risk and Increase Efficiency

Introduction

Credit is a vital banking service that not only banks offer but also non-bank financial institutions such as savings and loan cooperatives, factoring companies, and pawnshops. Credit plays a significant role in helping individuals and businesses who need funds, both for investment and working capital. However, to benefit from the credit business, companies need to run their credit operations well in order to minimize risk and loss. This encourages the need for a structured and effective internal credit control system.

The Importance of Credit Control System

The credit control system is crucial because if ignored, the credit business has the potential to suffer losses and even bankruptcy. The increasing competition between companies also forces the company to have an adequate credit control system to overcome the difficulties in managing the funds distributed to customers. This system includes preparation activities to determine the feasibility of a credit granting. A good credit control system can help companies to identify potential risks and take necessary measures to mitigate them.

PT. Pegadaian (Persero) and Credit Distribution

PT. Pegadaian (Persero) is a non-bank financial institution that provides credit facilities with guarantees. The company is officially licensed to carry out financing activities in the form of distribution of funds to the public based on the pawn law as stated in the Civil Code Article 1150. PT. Pegadaian (Persero) has a significant role in providing credit facilities to the public, especially in rural areas where access to banking services is limited.

The Need for Internal Control System

However, based on research by Mulyadi (2010: 164), one of the supporting factors for the implementation of a good internal control system is the separation of functional responsibilities in the organizational structure. Unfortunately, at PT. Pegadaian (Persero), there are concurrent positions, especially in the cashier who are also part of the administration/administrative. In fact, according to the branch office operational guidelines, these two roles should be carried out by different people because they have different tasks.

Deeper Analysis

Dual position at PT. Pegadaian (Persero) has the potential to cause various risks, including:

Increasing the risk of fraud: There is the potential for abuse of authority and manipulation of data by the cashier who concurrently as administration.
Data inaccuracies: Errors in data input or document processing due to dual positions can result in errors in credit assessment.
The slow process of lending process: Duplicate positions can slow down the process of lending because the cashier must do two tasks at once.
Lack of transparency: Duplicate positions can reduce transparency in the credit distribution process.

Solutions and Recommendations

To overcome the problem of double position and increase the effectiveness of the credit control system, PT. Pegadaian (Persero) can take several steps:

Separating positions: Strictly separating between cashier and administrative/administrative positions.
Increasing competence: Providing training and development for employees who hold key positions in the credit distribution process.
Application of Information Systems: Implement an integrated and automatic information system for the credit distribution process, so as to minimize data errors and increase efficiency.
Increasing Internal Supervision: Improving the Internal Supervision Function to ensure Compliance with applicable procedures and regulations.

Conclusion

The credit control system is a key factor in the success of the credit business at PT. Pegadaian (Persero). Duplicate positions that occur in the company need to be immediately overcome to minimize risk and increase efficiency. By separateing positions, increasing employee competencies, implementing integrated information systems, and increasing internal supervision, PT. Pegadaian (Persero) can build a more effective credit control system and minimize losses.

Recommendations for Future Research

Future research can focus on the following areas:

Implementation of internal control system: A case study on the implementation of internal control system at PT. Pegadaian (Persero) Regional Office I Medan.
Effectiveness of internal control system: An analysis of the effectiveness of internal control system in minimizing risk and increasing efficiency.
Best practices in credit control system: A review of best practices in credit control system in other non-bank financial institutions.

Limitations of the Study

This study has several limitations, including:

Limited scope: The study only focuses on PT. Pegadaian (Persero) Regional Office I Medan.
Data collection: The study relies on secondary data and may not capture all the relevant information.
Generalizability: The findings of the study may not be generalizable to other non-bank financial institutions.

Future Directions

Future research can build on the findings of this study and explore the following areas:

Implementation of internal control system: A case study on the implementation of internal control system at other non-bank financial institutions.
Effectiveness of internal control system: An analysis of the effectiveness of internal control system in minimizing risk and increasing efficiency.
Best practices in credit control system: A review of best practices in credit control system in other non-bank financial institutions.
Frequently Asked Questions (FAQs) about Internal Control System for Credit Distribution at PT. Pegadaian (Persero) Regional Office I Medan

Q: What is an internal control system?

A: An internal control system is a set of policies, procedures, and controls that are designed to ensure the accuracy, completeness, and reliability of financial information and to prevent errors, irregularities, and fraud.

Q: Why is an internal control system important for credit distribution at PT. Pegadaian (Persero)?

A: An internal control system is important for credit distribution at PT. Pegadaian (Persero) because it helps to ensure that credit is distributed in a fair and transparent manner, and that the risk of fraud and errors is minimized.

Q: What are the risks associated with dual positions at PT. Pegadaian (Persero)?

A: The risks associated with dual positions at PT. Pegadaian (Persero) include the potential for abuse of authority and manipulation of data, data inaccuracies, slow process of lending, and lack of transparency.

Q: How can PT. Pegadaian (Persero) overcome the problem of dual positions?

A: PT. Pegadaian (Persero) can overcome the problem of dual positions by separating positions, increasing employee competencies, implementing integrated information systems, and increasing internal supervision.

Q: What are the benefits of implementing an internal control system at PT. Pegadaian (Persero)?

A: The benefits of implementing an internal control system at PT. Pegadaian (Persero) include minimizing risk and increasing efficiency, improving transparency and accountability, and ensuring compliance with applicable procedures and regulations.

Q: How can PT. Pegadaian (Persero) ensure that its internal control system is effective?

A: PT. Pegadaian (Persero) can ensure that its internal control system is effective by regularly reviewing and updating its policies and procedures, providing training and development for employees, and conducting regular audits and assessments.

Q: What are the best practices in credit control system that PT. Pegadaian (Persero) can adopt?

A: The best practices in credit control system that PT. Pegadaian (Persero) can adopt include implementing a risk-based approach to credit assessment, using advanced technology to automate credit processing, and establishing clear and transparent credit policies and procedures.

Q: How can PT. Pegadaian (Persero) measure the effectiveness of its internal control system?

A: PT. Pegadaian (Persero) can measure the effectiveness of its internal control system by tracking key performance indicators (KPIs) such as credit approval rates, loan default rates, and customer satisfaction ratings.

Q: What are the challenges that PT. Pegadaian (Persero) may face in implementing an internal control system?

A: The challenges that PT. Pegadaian (Persero) may face in implementing an internal control system include resistance to change from employees, lack of resources and funding, and difficulty in implementing new technology and systems.

Q: How can PT. Pegadaian (Persero) overcome the challenges of implementing an internal control system?

A: PT. Pegadaian (Persero) can overcome the challenges of implementing an internal control system by providing training and development for employees, allocating sufficient resources and funding, and seeking external expertise and support.

Q: What are the future directions for research on internal control system at PT. Pegadaian (Persero)?

A: The future directions for research on internal control system at PT. Pegadaian (Persero) include exploring the implementation of internal control system at other non-bank financial institutions, analyzing the effectiveness of internal control system in minimizing risk and increasing efficiency, and reviewing best practices in credit control system.