Pawnshops doing brisk business before holiday<\/p>\n
JAKARTA (JP): The total amount of loans to be distributed
\nahead of Idul Fitri by the state-run pawnshops in the capital
\nwill amount to some Rp 30 billion, or some 50 percent higher than
\nlast year's corresponding sum of Rp 20 billion, an executive
\nsaid.<\/p>\n
The amount excludes the total repayment which is expected to
\nreach some Rp 40 billion during this annual peak season, Dedi
\nKusdedi, director of operations of the state-owned Perum
\nPegadaian pawnshop company, said on Wednesday.<\/p>\n
The estimate, he said, was based on the current reality where
\nmany Jakartans have joined the long queues at the city's 30
\npawnshops to mortgage their belongings for fresh money to cover
\nthe Idul Fitri festive season.<\/p>\n
With the prolonged economic crisis still raging and the Idul
\nFitri holidays just two weeks away, Jakartans, he said, were
\nfinding the lure of pawnshops hard to resist.<\/p>\n
\"We're experiencing a weird phenomenon today. Due to the
\ncrisis, many people who cannot afford to pay for goodies they
\nwant to take to their hometowns are pawning their precious
\nbelongings here,\" Dedi said.<\/p>\n
\"On the other hand, the middle- to upper-class Jakartans are
\nrepaying their loans in exchange for the goods they pawned as
\nthey want to wear expensive jewelry and drive expensive cars
\nduring the festive season,\" he added.<\/p>\n
The busy period for the pawnshops during Idul Fitri usually
\nstarts from the early days of the Ramadhan fasting month and
\nlasts one or two weeks after Idul Fitri, which is to mark the end
\nof Ramadhan.<\/p>\n
During the first week of this month alone, the pawnshop
\ncompany had already handed over loans worth Rp 16 billion and
\nreceived Rp 18 billion in reimbursement at its pawnshops in
\nJakarta, Dedi said.<\/p>\n
No problems<\/p>\n
The pawnshops in Jakarta so far have had \"no problems\" with
\nlending out money thanks to the steady inflow of cash. In the
\nmeantime, he said, the Jakarta chapter still has a total of Rp 8
\nbillion in cash ready to serve customers wanting to celebrate the
\nannual Muslim festive season.<\/p>\n
\"However, we are not too sure about the our cash inflow after
\nthe Idul Fitri holidays. We still have no idea how we are going
\nto handle situations then,\" Dedi said.<\/p>\n
According to Chaerul Anam, an executive at the Kebayoran Baru
\npawnshop in South Jakarta, loans approved at his branch since
\nJan. 2 alone totaled at least Rp 750 million.<\/p>\n
\"This is nearly twice the figure for the first week of last
\nmonth. People are pawning their goods like crazy here,\" Chaerul
\nsaid.<\/p>\n
\"I guess people dread the high interest rates on bank loans
\nand they know that they have to go through long and dreary
\nprocedures to get the loans.\"<\/p>\n
The Jatinegara pawnshop in East Jakarta reported that people
\nhave flocked into the office since weeks before Ramadhan to repay
\ntheir loans in exchange for goods pawned.<\/p>\n
\"They have repaid loans worth Rp 289.3 million within the
\nfirst week of this month. Naturally, they want their jewelry back
\nto show off to family friends,\" Dede Kurniawan of the pawnshop
\nsaid laughingly.<\/p>\n
According to him, loans distributed at the branch office since
\nJan. 2 had already reached Rp 292.2 million.<\/p>\n
\"People also need money to run businesses even in this time of
\nhardship. Bank procedures and interest rates are becoming too
\nmuch for the people now,\" Dede explained.<\/p>\n
On a national scale, Dedi Kusdedi estimated that the pawnshop
\ncompany this year would end up with a net income of Rp 20 billion
\nfrom loans that totaled some Rp 300 billion.<\/p>\n
\"We made Rp 17 billion in net income last year from loans
\nworth Rp 240 billion,\" he said. (ylt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pawnshops-doing-brisk-business-before-holiday-1447893297",
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