The Trajectory of PT. Pegadaian (Persero) as the Indonesian State-Owned Enterprise in Industrial Revolution 4.0

Abstract

Ever since 1901, PT Pegadaian (Persero), a state-owned company, has become the leading pawn company in Indonesia until 2016. The rapid development of information technology that impact all business sectors, the slow response from government regarding regulation of business, and the strong traditional organizational culture that hinder company to adapt to changes  are believed to be the key factors that end the monopoly era of PT Pegadaian (Persero). Transformation is the However, for many legacy and state-owned companies in Indonesia, culture change is the biggest challenge of digital transformation. The purpose of this study is to gain an understanding of the impact of digital transformation on changes in company cultures based on the 4R (reframe, restructure, revitalitation, and renewal) theories. To investigate this, a qualitative research is performed. The methods used are in-depth interviews with relevant divisions (Innovation Squad, Change Management, and Corporate Culture), field observations, and literature studies. The collected data is then analyzed with content analysis approach. There are some identified impacts on transforming process of PT Pegadaian (Persero) from traditional to digital company. The impacts are on the changes in the company's vision, organisational structures and business models.