Tuesday, 11 December 2012

ASBISINDO URGE BI TO EASE REGULATIONS ON GOLD PAWNING


The Association of Indonesia Syariah Banks urged Bank Indonesia to ease regulations of gold pawning as restrictions applied by BI caused portofolio of gold pawning to drop drastically to only Rp 250 million at the highest.

Chairman of Asbisindo Yuslam Fauzi said that BI s regulation had made pawn business to loose steam which was previously being aggressively enhanced by banks “: In the past gold pawn was in full swing, but now it’s losing steam” he said in Jakarta on Monday [17/9].

Portofolio of gold pawn at the value blow Rp 250 million was admittedly showing increase whilst in portofolio gold at the value above Rp 250 million was showing significant downturn. “The high ones plunge drastically, it can come to billions of Rupiah. The small ones are not so notable” Yuslam remarked.

Furthermore Yuslam said that he was taking several measures or create the right business prospect whereby to uplift portofolio of gold pawn. According to Yuslam, supposedly regulations did not restrict but did not reduce risk management so inter-bank competition can go on. For that matter Yuslam said, BU would review the rules released. “Gold pawning is still in the process of trial and error, trying to find the right format” we concluded.

Business News - September 21, 2012  

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