State firm tries to set the standard in gold
State firm tries to set the standard in gold
JAKARTA (JP): The state-owned Perum Pegadaian pawnshop company
has diversified by opening gold shops called Galeri 24.
Four of the company's 580 branches in Indonesia have gold
shops. They are Senen in Central Jakarta, Kebayoran Baru in South
Jakarta, Blimbing in Malang, East Java and Medan in North
Sumatra, which opened in December 1995.
According to Perum Pegadaian managing director Sjamsir Kadir,
starting the gold shops in 1991 furthered the company's
commitment to clients in need of honest jewelry trading.
"The carat measurement in other gold shops is not
standardized. Gold sold as 24 carats by one shop is valued at 23
or even 18 carats at other shops. Clients are forced to resell
the gold to the shop they bought it at if they want to get a good
price," Sjamsir told The Jakarta Post.
Errina Star, 34, an employee at the Pekanbaru pawnshop in
Riau, said pawnshop assessors often catch abuse from clients who
think the estimate of the value of their gold is too low.
"They think we intentionally make lower appraisals in order to
give smaller credit. But pawnshops only offer 80 percent of the
total value of the gold," said Errina.
"Besides, our assessors' carat count is indeed below the
figure mentioned in their receipts," she added.
"Apparently jewelers take advantage of their clients'
ignorance by giving incorrect carat measurements," said Errina.
Soeparto said that Perum Pegadaian, which earned a profit of
Rp 14.7 billion (US$6.3 million) in 1991, has long been concerned
about the lack of a standard carat measurement at jewelry shops
in Indonesia.
"We discovered this from our experience in assessing our
clients' gold," he said.
Perum Pegadaian opened its gold shops to standardize gold
sales. Gold sold at Galeri 24 has a standard carat measurement to
allow the owners to sell it anywhere. The shops also offer
assessor services.
"The Sabang branch of Galeri 24 in Aceh sells the same quality
gold as the Merauke branch in Irian Jaya or other places. Clients
will not be compelled to sell their gold where they bought it,"
said Soeparto.
The maximum assessment rate is Rp 4,500 or 5 percent of the
price of the article, said Soeparto.
The service is in demand.
"Clients who feel they have been cheated quickly sell the gold
back to the shop where they bought it. They then go to another,
more reliable shop," said Errina.
Clients can also ask Galeri 24 to assess their gold.
"Clients can ask their jeweler to test the gold at Galeri 24
before purchasing it," said Soeparto.
The service might not be popular with jewelers, but Perum
Pegadaian wants the Ministry of Industry and Trade to allow it to
officially set the gold jewelry standard.
-- Imran Rusli