Some Jakartans now know where to look for quality second-hand products: In pawnshops.

Andre Saputra, an employee of a video production house in Tanah Abang, Central Jakarta, said that he always checked out the electronic products up for auction at pawnshops. Andre, a resident of Cikarang, Bekasi, said that no special skills were needed to assess a product'€™s quality.

 '€œMany people cannot pay the collateral on items by the maturity date. Those items are usually in good condition because they have been examined by the pawnshops,'€ Andre told The Jakarta Post recently.

He is a frequent customer at the pawnshops, where he picked up his PlayStation 2 and camcorder.

While only state-owned pawnshop PT Pegadaian is allowed to operate under the law, independent (albeit illegal) pawnshops are a common sight in Jakarta.

One such wildcat operation is Pusat Gadai, located near the intersection of Jl. Hayam Wuruk and
Jl. Mangga Besar in West Jakarta. The pawnshop, which operates under a gigantic sign, only accepts electronic products such as mobile phones, laptops and Apple products.

Unlike Pegadaian, which allows borrowers a four month extendable loan period, Pusat Gadai gives its customers just a month to redeem their property by repaying the collateral plus 10 percent interest.

Customers can pay an additional 5 percent in the first seven days after the one month period. However, on the eighth day after the loan comes due, the item pawned will be offered for sale.

'€œWe always check the condition of all pawned items. Mobile phones should come complete with charger, but mobile phones from Chinese brands should come in the original box,'€ Muna, a Pusat Gadai employee, said.

Meanwhile, hunting for electronic goods or gold jewelry in Pegadaian pawnshops requires a knowledge of the schedules and characteristics of individual branches.

Syahrudin, the head of the warehouse at Pegadaian pawnshop in Petamburan, Tanah Abang, said that branches typically scheduled auctions twice a month, on the 7th and 22nd.

'€œThe schedule for gold jewelry auctions sometimes changes depending on the price of gold in the market. The date can be delayed if the price of gold declines sharply,'€ he told the Post.

Pegadaian branches in Tanah Abang and in Jatinegara, East Jakarta, are popular for electronics and gold jewelry. Syahrudin said that his pawn shop could sell 150 pieces of jewelry and around five electronic items in a single auction.

Irdam, an employee at the Pegadaian pawnshop at Kenari Baru market in Salemba, Central Jakarta, said that they used to display many LCD televisions for sale in the waiting room.

However, nowadays, they only had gold jewelry for auction.

 '€œWe have one regular customer who usually drops Rp 150 million [US$15,444] every month to buy gold jewelry,'€Irdam said.

Pegadaian pawnshops will send notification letters to owners before selling their pawned property. If the product is sold at a price higher than the loan and interest, the customer can pocket the margin.

Financial advisor Safir Senduk said that customers should not rely on the appraisal of pawnshops when purchasing second-hand products, although he said Pegadaian pawnshops were relatively safe since they were under the government'€™s supervision.

 '€œIf you want to buy a gold bar, buy it in a safe place, such as PT Antam, gold shops selling gold bars with an Antam certificate, sharia banks, PT Pegadaian or traders of commodity futures,'€ Safir said.

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