Arisan
Encyclopedia
Arisan is an Indonesia
n social gathering in which a group of friends and relatives meet monthly for a private lottery
similar to a betting pool
. Each member of the group deposits a fixed amount of money into a pot, then a name is drawn and that winner takes home the cash. After having won, the winner's name is removed from the pot until each member has won and then the cycle is complete. This is called a fixed lottery because it is fair to all participants in that each member wins an equal amount over the course of a complete cycle.
The primary purpose of Arisan is to enable members to purchase something beyond their affordability, such as a new car, kitchen appliance, or wedding gift. It enables participants to purchase items faster than they would otherwise be able to accumulate the savings without involving bank loans or credit.
Arisan is popular across all Indonesian social groups. They are particularly popular among housewives and upper class women who enjoy the social aspect. Some Arisan groups in Jakarta have grown into an exhibit of wealth featuring a "Who's Who" of high society.
Arisan has a long history but became increasingly popularity in the 1970s. In the 1980s and 1990s, this type of banking became formally recognized under the new term Microfinance
which represents this type of private monetary exchange. Specifically, Arisan is an example of "rotating credit associations".
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n social gathering in which a group of friends and relatives meet monthly for a private lottery
Lottery
A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...
similar to a betting pool
Betting pool
A betting pool, sports lottery, sweep or office pool if done at work, is a form of gambling, specifically a variant of parimutuel betting influenced by lotteries, where gamblers pay a fixed price into a pool , and then make a selection on some outcome, usually related to sport...
. Each member of the group deposits a fixed amount of money into a pot, then a name is drawn and that winner takes home the cash. After having won, the winner's name is removed from the pot until each member has won and then the cycle is complete. This is called a fixed lottery because it is fair to all participants in that each member wins an equal amount over the course of a complete cycle.
The primary purpose of Arisan is to enable members to purchase something beyond their affordability, such as a new car, kitchen appliance, or wedding gift. It enables participants to purchase items faster than they would otherwise be able to accumulate the savings without involving bank loans or credit.
Arisan is popular across all Indonesian social groups. They are particularly popular among housewives and upper class women who enjoy the social aspect. Some Arisan groups in Jakarta have grown into an exhibit of wealth featuring a "Who's Who" of high society.
Arisan has a long history but became increasingly popularity in the 1970s. In the 1980s and 1990s, this type of banking became formally recognized under the new term Microfinance
Microfinance
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....
which represents this type of private monetary exchange. Specifically, Arisan is an example of "rotating credit associations".