Socio-Cultural Analysis of Household Asset Pawning Behavior in Indonesia: The Relationship between Values, Economic Cruciality, and Stigma

Abstract

The practice of pawning household assets in Indonesia is a complex socio-economic phenomenon, especially amid rising economic pressures and strong cultural values. This study aims to understand how communities perceive pawning as a survival strategy, how narratives of honor, ownership, and shame influence decision-making, and how social constructions of debt and family values shape attitudes toward pawning. The research employs a qualitative approach with a Grounded Theory framework, using in-depth interviews, participatory observation, and narrative analysis in both urban and rural communities. Data analysis involves open, axial, and selective coding to develop a substantive theory aligned with the socio-cultural context. Findings show that pawning is not merely a short-term financial solution but also a socially meaningful act full of symbolic significance. In urban areas, the stigma attached to debt is stronger, causing many respondents to hide their pawning practices through intermediaries or digital services to protect social image. Conversely, in rural areas, pawning is openly accepted as part of solidarity and mutual cooperation, often involving collective family or neighbor participation. Justifications range from religious reasons (“urgent but still Sharia-compliant”) to narratives of resilience (“just a temporary pause”) that help alleviate shame and maintain family dignity. Ownership of assets such as gold and heirlooms is viewed as a symbol of family identity, preserved through pawning rather than selling. These findings reveal a close relationship between household economic strategies and social-cultural values. The complex interaction of economic pressure, honor, and stigma makes pawning a reflection of Indonesia’s social dynamics and provides a vital basis for culturally sensitive policy and social interventions.