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."