Students pawn gear for peace of mind

Students pawn gear for peace of mind

The Jakarta Post, Yogyakarta

If you thought pawnshops were only good for quick cash then think
again. Over the last two weeks, hundreds of university students
in Yogyakarta have been leaving their belongings in the custody
of state-run PT Pegadaian pawnshops for the Idul Fitri holiday.

Some students came alone, while others arrived in groups, or
even rented pickup trucks to transport their belongings.

Lempuyangan pawnshop was busy all week with students wanting
to pawn a variety of things, from televisions to refrigerators to
motorcycles.

Yayat, a 27-year-old university student said he had pawned his
motorcycle to ensure it was safe while he was in his hometown,
Ciamis in West Java.

"I'd rather pawn it than have it stolen from my boarding
house. At least this way I can have peace of mind," he said.

He pawned the motorcycle for Rp 750,000 (US$75), which he will
spend on transportation home.

"I'll get my motorcycle back later," Yayat said.

Another student, Anjar, 22, did the same thing. The native of
Banjarnegara in Central Java pawned her computer before leaving
for "home".

"I pawned my computer for security reasons, as well as to get
enough money for my trip," Anjar said.

Lempuyangan pawnshop has seen total daily transactions rise
from Rp 140 million to Rp 190 million.

"Our turnover has increased by around 25 percent ahead of Idul
Fitri," said Sri Mulyadi, an employee of Lempuyangan pawnshop on
Tuesday.

The university students, he said, had contributed to the
increase.

"Since two weeks ago we've been inundated by customers, 70
percent of whom are university students," he said, adding that
the students mostly pawned electronic goods, such as computers
and televisions.

The pawnshop, he added, applied an interest rate of 3.2
percent.

"The period of the loan be extended after four months if the
customer cannot afford to retrieve their belongings. They can pay
the interest to extend it," Sri said.

At another pawnshop in Bantul the turnover has jumped by 100
percent, but mostly because people are getting their things back
in time for the holiday.

On a regular day, the office recorded Rp 30 million in
transactions from people collecting their belongings, but in the
last week, the amount has jumped to Rp 70 million daily.

"In Bantul, people take back their things, like televisions
and motorcycles, so they can use them for the celebration," the
pawnshop's manager, Susanta, told The Jakarta Post on Tuesday.

"But, after Idul Fitri, they will pawn their things again."