arisan

Arisan is a form of rotating savings and credit association (ROSCA) common in Indonesia and other parts of Southeast Asia. It consists of a fixed group of people who pool a regular contribution of money. The amount contributed by each member each period is pooled and the pot is given to one member at a time—either by rotating order or by lottery. The process repeats until every participant has received the full sum. Some groups use a monthly schedule; others meet weekly.

The arrangement serves two main purposes: encouraging disciplined savings and providing access to a lump-sum of cash for needs such as celebrations, education, or small business investments. Besides financial risk-sharing, arisan also functions as a social network, reinforcing mutual aid and social ties within the community. Participation often involves regular meetings, social activities, and group norms, and spots may be associated with social status.

Because arisan is informal and unregulated, there are risks: default by members, mismanagement of funds, and potential scams. Some variants incorporate more formal elements or operate within established community organizations to reduce risk. Arisan remains deeply embedded in everyday life in many urban neighborhoods and has appeared in media, including a 2001 Indonesian film titled Arisan!, which examines urban social circles and wealth.