Private pawn shops helping students raise cash<\/p>\n
Slamet Susanto, The Jakarta Post, Yogyakarta<\/p>\n
The white painted house on Jl. Pangeran Mangkubumi in Yogyakarta
\nis filled to bursting with people, mostly students. A piece of
\ncardboard placed at the door reads: "Cell phones, computers and
\nvouchers are not accepted".<\/p>\n
As the door opens, there is a whiteboard reading: "Customers
\nmust show original identity card and leave a copy". There is
\nanother sign: "Items are not redeemable 10 days after the cut-off
\ndate".<\/p>\n
Welcome to the UD Sukardja, a private pawn shop owned by Siti
\nKhotijah Sukarja, 57, and mother of four.<\/p>\n
Every afternoon before Idul Fitri, or Lebaran, her house-cum-
\npawn shop is always crowded by people who need instant cash for
\ntheir holiday.<\/p>\n
"This is a legal business with a permit. Usually closer to
\nLebaran, customers, particularly students, come in a steady
\nstream," Khotijah told The Jakarta Post.<\/p>\n
She said starting this year, she decided to accept only
\nmotorcycles with a Yogyakarta license plate, televisions and
\nother electronic goods as collateral.<\/p>\n
The pawnbroker refused to accept cell phones and computers
\nbecause their prices fluctuated severely.<\/p>\n
"When an item is brought here, it may cost Rp 1 million, but
\nfour months later, it may cost only Rp 400,000. If one borrows Rp
\n500,000 but doesn't redeem the item, my business will suffer,"
\nshe explained.<\/p>\n
Pawning your belongings is easy at Khotijah's. You need only
\nto show your original ID card and leave a copy with the shop.<\/p>\n
Customers should redeem their belongings within four months at
\nthe most, and this time frame cannot be extended. After you
\nredeem your belongings and bring them home, though, you may pawn
\nthem again the next day.<\/p>\n
There is an interest of 10 percent to redeem pawned items. If
\nthe customer redeems the item a month before the four months is
\nup, the interest is six percent; if the item is redeemed two
\nweeks before the set period, the interest is eight percent.<\/p>\n
If the customer doesn't redeem the item 10 days after the cut-
\noff period, the collateral will be sold.<\/p>\n
Khotijah said she didn't accept gold jewelry because most of
\nthose sold on the market are made of 18 karat gold.<\/p>\n
She said she ran the business to help students who are in dire
\nneed of cash to pay for their tuition, especially those whose
\nparents are not in Yogyakarta.<\/p>\n
"If they can't pay their tuition, they might have to postpone
\ntheir studies for one semester. They will suffer. So, my
\nintention is to help such students."<\/p>\n
Khotijah, however, declined to reveal her turnover. "I never
\ncount the money. I don't even remember exactly when I started my
\nbusiness. But it is surely more than 25 years ago," she said.<\/p>\n
Khotijah is not the only one who runs a pawn shop in
\nYogyakarta.<\/p>\n
Bambang Triyanto, 29, started his shop last year on Jl.
\nBrontokusuman Mg III No. 913 after a friend, who was studying at
\na private university, borrowed some money from him to celebrate
\nIdul Fitri in his hometown, Jambi, Sumatra. In return, he lent
\nBambang his motorcycle.<\/p>\n
This inspired Bambang and several friends to start up a pawn
\nshop and, at the same time, help students who needed instant
\ncash.<\/p>\n
"But we only accept motorcycles (as collateral)," he said.<\/p>\n
Along with his friend Bajuli, he raised Rp 7 million, which he
\nlent to anyone in need. Bambang said he did not charge any
\ninterest.<\/p>\n
"If we ask for interest, we will look like rentenir (loan
\nshark)."<\/p>\n
Bambang used the collateral property to earn some extra money.
\nTo this end, he asked his customers to sign a release saying they
\nwould not mind if the vehicle is used as an ojek (motorcycle
\ntaxi) or is rented.<\/p>\n
"But we will be responsible for any damage or losses. If
\nsomething breaks, we will fix it. If the motorcycle is lost, we
\nwill replace it."<\/p>\n
When asked about his gross income last year, he said, "I don't
\nremember how many motorcycles were brought here. But the gross
\nincome was Rp 20 million. This year, we have provided as much as
\nRp 25 million cash."<\/p>\n
He said people "pawned" their motorcycles not only because
\nthey needed money, but also because of reasons of security,
\nespecially if they have to leave their bike behind when they take
\noff on long holidays.<\/p>\n
Yayat Sudrajat, 26, a student from Ciamis, West Java, said he
\npawned his motorcycle because he needed some ready cash.<\/p>\n
"If I leave my motorcycle at my boarding house, it might be
\nstolen. It's better to leave it at a pawn shop," he said.<\/p>\n
He said he pawned his Suzuki Shogun motorcycle for Rp 400,000
\nto buy a ticket to his hometown for Idul Fitri. He was not
\ntempted to borrow more than this, as he feared he could not
\nredeem it on time.<\/p>\n
Spokeswoman of the Yogyakarta provincial pawn office Ninoek
\nSriyanti concurred that many people borrowed less than the actual
\nvalue of the pawned item. Many students, for example, borrowed
\nonly Rp 400,000 to Rp 700,000, even though the motorcycles they
\nleft as collateral cost millions of rupiah each.<\/p>\n
"They need to feel secure when they return to their hometown.
\nInstead of leaving the motorcycle at their boarding houses and
\nrisking it being damaged or stolen, they prefer to take it to a
\npawn shop," she said.<\/p>\n
Ninoek said private pawn shops did not affect the business of
\nstate pawn shops.<\/p>\n
"We are still providing a huge amount of credit, reaching Rp
\n35 billion or Rp 1.3 billion a day in any given month. A week
\nbefore Idul Fitri, it may reach Rp 1.75 billion a day."<\/p>\n
She warned, however, that customers should be wary about being
\ncheated by private pawnbrokers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/private-pawn-shops-helping-students-raise-cash-1447893297",
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"sponsor": "Okusi Associates",
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