Medan folk begin to flood pawnshops<\/p>\n
Apriadi Gunawan, The Jakarta Post\/Medan<\/p>\n
Dirman, a father of four, rode his bicycle to the main branch of
\nthe state pawnshop on Jl. Pegadaian in Medan, the capital of
\nNorth Sumatra. Even though the weather was unbearably hot, and
\nDirman was fasting, he looked determined to take care of his
\nbusiness.<\/p>\n
He parked his bicycle next to the pawnshop and began his
\nventure. He handed 3.5 grams of his wife's jewelry to an employee
\nin the pawnshop and in return he received Rp 500,000 (US$53).<\/p>\n
\"Not bad. With this money I will be able to buy cookies and
\nclothes for my children,\" said Dirman, 54, a resident of
\nSelayang, Medan.<\/p>\n
Dirman had to pawn his wife's jewelry to pay for the coming
\nIdul Fitri holiday. He is a construction worker but has not had a
\njob for about a month, so money is running low.<\/p>\n
Dirman is among the thousands of Medan residents trying to
\nraise money at a pawnshop ahead of Idul Fitri.<\/p>\n
The most commonly pawned item is gold jewelry, and the average
\namount of money obtained is between Rp 500,000 and Rp 1,500,000.
\nThe interest rate of no more than 5 percent of the amount
\nborrowed will be a burden, but most people prefer not to think
\nabout it.<\/p>\n
Some people pawn their motorcycles for more than Rp 2 million,
\nwith an interest rate of above 5 percent.<\/p>\n
Sumardi, a resident of Marelam, had two motorcycles at home
\nand pawned one of them for Rp 2.5 million.<\/p>\n
\"We needed the money to go home to Bekasi for Idul Fitri this
\nyear,\" said Sumardi, who planned to leave a week prior to the
\nholiday with his wife and two children.<\/p>\n
A spokesman for the state-owned Pawn Company in the North
\nSumatra\/Aceh region, Bastian Sinaga, said on Friday there had
\nbeen an increase in the number of people visiting pawnshops over
\nthe past week.<\/p>\n
He said the majority of the people were coming to pawn their
\nbelongings, but some had come to redeem their possessions.<\/p>\n
Bastian said the pawnshops were a necessary source of money
\nfor residents.<\/p>\n
\"We will disburse as much money is needed by residents,\" he
\nsaid.<\/p>\n
There are 49 branches of the state-owned pawnshop in North
\nSumatra and Aceh.<\/p>\n
Generally, business at the pawnshops is estimated to rise by
\nbetween 10 percent and 15 percent ahead of the Idul Fitri and
\nChristmas holidays every year, Bastian said.<\/p>\n
Bastian said about 90 percent of customers pawned jewelry,
\nwhile 10 percent pawned motorcycles, cars and electronic goods.<\/p>\n
He said the turnover in North Sumatra as of September was
\n68.07 percent of the targeted amount of Rp 453.7 billion. He
\nadded that he was optimistic the target would be reached in
\nDecember.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/medan-folk-begin-to-flood-pawnshops-1447893297",
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"sponsor": "Okusi Associates",
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