Pawnbroking no longer a humble business<\/p>\n
By Imran Rusli<\/p>\n
JAKARTA (JP): Pawnshops, once the solution for people in need
\nof cash, have gained stature over the years. No longer are these
\nlending establishments frequented by the poor alone. Jakarta's
\npawnshops are now attracting affluent people, if not the super
\nrich.<\/p>\n
Kisprijono, who runs of the East Jakarta branch of the state-
\nowned Perum Pegadaian pawnshop in Jatinegara, told The Jakarta
\nPost that his shop once took in a Mercedes Benz valued at Rp 50
\nmillion (US$21,673).<\/p>\n
"Nowadays people mainly pawn their diamonds, even five-carat
\nones," he said.<\/p>\n
Pawnshops are the busiest at Idul Fitri, the culmination of
\nRamadhan.<\/p>\n
Soeparto, the spokesman for Perum Pegadaian, claimed that
\nturnover increases 30 percent with the approach of Idul Fitri
\nbecause people need cash.<\/p>\n
"Psychological demands are pressing. People may still wear a
\nsmile when they aren't able to send their children to school, but
\nthey will be deeply embarrassed if they cannot celebrate the
\nholiday properly," he told the Post.<\/p>\n
Both Kisprijono and Arie Putra Benjamin, who runs the
\nKebayoran branch of Perum Pegadaian, confirmed this increase in
\nbusiness. Turnover rises from an average of Rp 1.04 billion to Rp
\n1.6 billion a month. At the moment, they have a turnover of 10 to
\n15 percent of their stock.<\/p>\n
"But, it is increasing," said Kisprijono.<\/p>\n
Some affluent customers pawn their valuables to keep them safe
\nwhile they are away on holidays. The less fortunate, on the other
\nhand, try to buy back their jewelry to wear on the big day.<\/p>\n
"When the holiday is over they will return the valuables to
\nthe pawnshop," Kisprijono said.<\/p>\n
People also pawn their belongings to utilize the money more
\nefficiently and effectively, explained Arie Putra Benjamin.<\/p>\n
Said Arie Putra Benjamin: "The credit provides them with
\nseveral advantages all at once. First, their savings will stay
\nintact. Second, their property is safe. Third, the money is put
\nto good use when they take a trip to their hometowns. And last,
\nand best, repurchases are payable in installments at extendible
\ntime limits against an interest rate of 1.25 percent every 15
\ndays."<\/p>\n
Three weeks before Idul Fitri, the government pawnshops in
\nJatinegara in East Jakarta, Senen and Tanah Abang in Central
\nJakarta, and Pasar Minggu in South Jakarta are assaulted by
\ncustomers and brokers. The shops are a mixed bag of suppressed
\nemotion. People stand clutching precious objects or valuable
\ndocuments to be mortgaged.<\/p>\n
Confusion, stress and impatience can be read on customers'
\nfaces. Although some people are relaxed enough to engage in
\nconversation, the majority of the crowd watches the wall clock,
\nfearing the arrival of noon and a further delay.<\/p>\n
"We have served more than a thousand people since early
\nmorning," said Hamid, a security guard at the shop in Tanah
\nAbang.<\/p>\n
Pawnbroker Misrah, 60, admitted that Idul Fitri is usually
\nlucky for her.<\/p>\n
"Many customers get discouraged when they see the pushing and
\ngoings on at the counters. That's where I come in. I charge 10 to
\n20 percent for my service," said Misrah, an adroit broker who has
\nworked in the Tanah Abang pawnshop for 20 years.<\/p>\n
The Senen shop is the most packed, with customers spilling
\ninto the yard. With a seating capacity of 20, finding a seat is
\nimpossible.<\/p>\n
In Jatinegara, where antique cloth is the specialty, customers
\nare preyed on by buyers, like Sutinah, who usually go for the
\nless affluent.<\/p>\n
"I like to talk them into a straight sale instead of going
\nthrough all the trouble of pawning," said 57-year-old Sutinah.<\/p>\n
Five years ago Sutinah bought reams of batik cloth and jewelry
\nfrom people short of cash.<\/p>\n
"I pawned the lot for credit," said the grandmother who has
\nbeen in the business for at least 15 years.<\/p>\n
"The management, staff and security keep watch. They don't
\nwant us to operate in here. They say that we are taking advantage
\nof the poor. But, what can I do? This is the only way I know to
\nearn my bread," complained Sutinah.<\/p>\n
Tambunan conducts a similar business at the Senen pawnshop.
\nThe gold trader admits that most of her customers are initially
\npawnshop customers.<\/p>\n
"I usually buy up jewelry at half the price," she said without
\nremorse.<\/p>\n
Origin<\/p>\n
Pawnshops were first introduced by the Dutch, the first shop
\nbeing established in Sukabumi, West Java on April 1, 1901. The
\npawning business originated in Lombardi, Italy.<\/p>\n
The Minangkabau people in West Sumatra, however, were familiar
\nwith the idea long before the Dutch introduced it here. The
\nMinangkabau would mortgage their rice fields or coconut
\nplantations, but because clan property cannot be sold, the land
\ncan't be confiscated even after the payback date expires.<\/p>\n
According to Erwin Msi, the secretary of the anthropology
\ndepartment at Andalas University in Padang, West Sumatra, "The
\nlender is entitled to the yields until the debt is settled."<\/p>\n
"The mortgage can last for a very long period without yielding
\nany interest. It is enough to adjust the assessment rate to the
\nprice of gold or top quality rice," the 33 year old said.<\/p>\n
The Sukabumi shop soon became an important pillar in the life
\nof the poor. Cloth, gold ornaments and typewriters were all often
\nmortgaged, revealed Sjamsir Kadir, the managing director of Perum
\nPegadaian.<\/p>\n
"Typewriters are generally mortgaged by students who are short
\nof cash," he told the Post at his home in Slipi, West Jakarta.<\/p>\n
He said people consider pawning their belongings better than
\nselling or begging, and far better than borrowing and falling
\ninto the snares of a loan shark.<\/p>\n
"Pawning allows them to buy back all their goods," says
\nSjamsir, who is a graduate of the University of Oregon in
\nAmerica.<\/p>\n
Soeparto, Perum Pegadaian's public relations manager, insists
\npawnshops are safe.<\/p>\n
"Collateral and pawnshops across Indonesia are insured by PT
\nAsuransi Jasa Indonesia, the bona fide government insurance
\ncompany," said Soeparto.<\/p>\n
Perum Pegadaian has had to make claims several times, like
\nwhen the storeroom of the Salemba branch in Jakarta was broken
\ninto in January 1992, and when the Masaran branch in Sragen,
\nCentral Java was robbed in October 1995.<\/p>\n
"The indemnity amounted to 125 percent of the assessed value,"
\nsaid Soeparto.<\/p>\n
Pawnshops continue to be popular because loans are issued
\nwithout a waiting period.<\/p>\n
Meli, a housewife with three children, who lives in Jagakarsa,
\nSouth Jakarta told the Post, "It doesn't take 10 minutes to get
\ncash. Terms are also easy. We can mortgage our belongings in all
\nthe pawnshops of Indonesia, just like the prevailing banking
\nsystem."<\/p>\n
A photocopy of the pawner's ID card and the authorization
\ndocument is all it takes to buy back the goods, which helps
\npeople not known locally to use the system. A lost receipt is
\nreportedly no problem either.<\/p>\n
"Just report it to the police and the head of the pawnshop.
\nThey will issue a new receipt in no time without much fuss,"
\nclaimed Meli, who had to go through the experience once.<\/p>\n
The easy cash attracts a mix of customers to pawnshops,
\nincluding small traders.<\/p>\n
Ujang, a young rag trader in Pasar Ular in North Jakarta,
\nsaid, "I prefer going to a pawn shop than having to go from one
\nbank employee to another, and so on, for a loan." He was once
\nable to borrow as much as Rp 5 million from a pawnshop.<\/p>\n
Padmi, a widow and foodstall owner living in Kwitang in
\nCentral Jakarta, sees pawnshops as her life support.<\/p>\n
"I get cash easily, even though I'm only pawning my mother's
\nbatik," she said.<\/p>\n
The simplicity of the system naturally attracts crooks.<\/p>\n
One incident was reported last August when a man attempted to
\nmortgage stolen goods in a pawnshop in Pekanbaru, Riau.<\/p>\n
According to pawnshop employee Errina Star, "The man left when
\nasked for his ID card. He was still lucky in a way, because the
\npolice only inquired about the stolen goods a few days after his
\nvisit," she said.<\/p>\n
Although pawn shops making money from the rich, they will
\nnever defer from their objective of providing the poor access to
\nquick cash, Soeparto said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pawnbroking-no-longer-a-humble-business-1447893297",
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