Laporan Penelitian_PRIVATE PAWNSHOP REGISTRATION AS EFFORTS TO DEVELOP SMALL AND MEDIUM ENTERPRISES IN INDONESIA

Abstract

This study aims to reveal the facts of the development of private pawnshop business in Indonesia and provide an analysis of the pawnshop business model as an effort to develop small and medium industries. At first, the main purpose of holding a pawnshop was to help small and medium-sized communities. At present, the pawn has experienced rapid development, not only reaching the middle to lower class, but also having become a necessity for the whole community. Pawn is also directed at providing capital in business development, especially small and medium enterprises. The mortgage business includes pawns managed by pawnshops and private pawns. In the past, private pawns had no regulation and supervision, so there were frequent irregularities in the principles of pawning and an imbalance in legal relations. This has the potential to cause losses for the parties. Since the Regulation of the Financial Services Authority concerning the Mortgage Business, private mortgages have been regulated. One of them is the obligation to do business registration and permission. The research method used is a mixed method that combines qualitative and quantitative research. The research approach uses legal pluralism which integrates normative, sociological and philosophical research. Data testing uses triangulation techniques. The results of the study show that registration of private pawnshops is still not widely carried out. This resulted in difficulties in supervision. This lack of registration is due to various factors, including the provision of minimum capital that cannot be met by micro, small and medium enterprises, whereas in practice many private mortgage businesses are included in these criteria. This has the potential for the emergence of constraints in the development of small and medium enterprises, the number of illegal private mortgages that have the potential to cause irregularities and imbalances. In addition, it will be difficult for the government to supervise the implementation of private pawnshops.