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