Implementation of the Ijon System for Livestock Trade in the Traditional Sasak Community of Lombok (Study in Gelanggang Village, Sakra Timur District, East Lombok

Abstract

The purpose of this research is to determine the implementation of ijon (pawn-purchase) trading within the Sasak indigenous community of Lombok and to analyze the legal protection regarding such practices. The research method employed is a normative-empirical approach, utilizing several methods: the statute approach, case approach, and conceptual approach. The results of this study indicate that: First, the ijon system in Lombok is a traditional pledging system involving the exchange of assets for a promise of future payment at a higher value. This system emerged as an alternative for people with limited access to formal financial institutions. Beyond meeting urgent financial needs, ijon also possesses a business dimension where the lender profits from the price difference. Second, the practice of the ijon system strongly contradicts universally applicable legal principles. Despite being a customary practice among the Sasak people in Gelanggang Village, East Lombok, transactions using the ijon system are legally declared invalid and have the potential to disadvantage one of the parties involved. This is because the system does not meet the requirements for a valid agreement.