Pawnshop gives Lampung people holiday cheer

Pawnshop gives Lampung people holiday cheer

Oyos Saroso H.N., The Jakarta Post, Bandarlampung

Carrying a simple handbag and wearing only flip flops on her
feet, a woman enters state run pawnshop PT Pegadaian in
Bandarlampung, Lampung. A man follows, carrying a television set,
neatly wrapped in a red tablecloth.

Pawnshop staff examined the 21-inch television that Maryani,
50, purchased just last year for Rp 1.2 million (US$120).

"If it's Rp 700,000, let the television go," said Maryani's
husband, Supadyo.

With Idul Fitri celebrations coming up, prices are on the rise
following the government's decision to raise fuel prices by an
average of 126.6 percent. Many people are thus finding relief at
state-owned pawnshops, where they can pawn their belongings in
return for cash. If in a given time they cannot repay the advance
given to them, then their goods will be sold.

Like other people at this time of the year, Maryani and
Supadyo, who work as casual day laborers in Tugu Market,
Bandarlampung, have few options in raising the money required to
ensure that their family can properly celebrate Idul Fitri, which
this year falls on Nov. 3.

At this time of the year, it's not only the poor who become
pawnshop clients. There are also those who pawn their cars for
quick cash.

Antoni, 37, a resident of Sukarame in Bandarlampung, confessed
that he pawned his car at the pawnshop.

"Pawnshops now are much more creative. People can pawn their
goods without having to leave them in the pawnshop office.
Although I pawned my car, I can still drive it around," he said.

He said the requirements were easy; one only had to show their
vehicle documents and then the pawnshop employees would survey
the vehicle.

Head of Pegadaian's Kedaton branch, Khaironi, said his office
had experienced a 70 percent increase in transactions, with many
people trading in their goods to meet needs for Idul Fitri, as
well as for working capital.

In Kedaton, the pawnshop currently channels up to Rp 112
million in loans per day, while on regular days, it only issues
between Rp 60 million and Rp 70 million.

Most of the pawned goods are jewelry and electronic equipment,
he said.

Khaironi predicted the number of transactions would continue
to increase seven days before Idul Fitri, but a week before the
celebration, people, especially those who had pawned jewelry,
would usually pay back their loan because they want to wear the
jewelry during special occasions.

He estimated the pawnshop would distribute up to Rp 3 billion
in loans this October, an increase on the Rp 1.9 billion during
regular months.

"I'm sure this year's target to channel around Rp 24 billion
in loans can be met," Khaironi said, adding that the company had
channeled over Rp 18 billion in loans as of September this year.