Ronna Nirmala – As food prices continued to climb on the eve of Ramadan on Friday, state-owned pawnshops across the nation began to experience the seasonal surge of customers looking to unload items for a much-needed buck or two in anticipation of an expensive holy month ahead.

Zulkifli, a staff member at a pawnshop in Kebayoran, South Jakarta, said that the queue of people in front of his shop had formed even before it opened its doors at 10 a.m. and had remained constant throughout the day. He said most were pawning gold, but others were even pledging their beloved motorcycles.

People, he said, chose to deposit their wares in the pawnshops, known as pegadaian in Indonesian, because of the convenience and ease, with payments for jewelry taking about 15 minutes and for other items, including motorcycles, about an hour. Zulkifli said people were also using the loan facility, with pegadaians charging interest rates of 0.75 percent to 1.3 percent over 15-day periods for loans, depending on the amount. All loans were for at most four months.

With the price of some staple foods increasing by as much as 20 percent, Ramadan, a time of fasting and feasting with loved ones, is an expensive prospect for many struggling below or on the poverty line. But for some, it is a time to spend money and flaunt wealth, with many wanting to put their best foot forward when they return to their hometowns or villages for Idul Fitri celebrations marking the end of Ramadan.

M. Nur Chatib, a spokesman for PD Pasar Jaya, said the fasting month usually brought a 5 percent to 10 percent increase in the number of their buyers.

Nizam Yunus, an economics lecturer from the University of Indonesia, said it was called "consumption behavior" in economics and that "every community has its own particular characteristics."

"People prepare for special events each year, whether it be Ramadan, Idul Fitri, Christmas, New Year and even for the new academic year. They will do anything to make that moment as impressive as possible."

Nizam said the increased demand meant that prices rose, "but the surprise is that people don't care... because the event only happens once a year and it's the special event that people don't want to miss just because they don't have enough money."

A spokesman for PT Pegadaian, Irianto, said that in the past, people borrowed money from brokers or sold their possessions, but now they could just go to a pegadaian, where they could unload unnecessary items and buy them back in two to four months, if needed.