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.