Bali's car rental firms on the brink of bankruptcy<\/p>\n
DENPASAR, Bali (JP): The car rental sector on the tourist
\nisland of Bali is facing hardship because of a drop in tourist
\narrivals and the country's critical economic, social and
\npolitical conditions.<\/p>\n
A young businessman in Bali, Putu Sutarta, 35, said, \"I should
\nhave closed my business a long time ago.\"<\/p>\n
Putu said that business has plummeted since the economic
\ncrisis hit the country in the middle of l997.<\/p>\n
\"If I analogize it with boxers, we are like a loser who has to
\nimmediately leave the ring,\" he said.<\/p>\n
In the past two months, only 20 percent of his fleet of 50
\ncars has been rented. The rental fee for a Suzuki Jimny jeep is
\nset at Rp 70,000 (US$10) a day. \"I calculate the daily losses at
\nabout Rp 1 million or Rp 31 million a month,\" Putu added.<\/p>\n
Not to mention the possible loss from luxury cars like Honda
\nCivics and other sedans, which range from Rp 300,000 to Rp
\n350,000 a day.<\/p>\n
\"My company has various kinds of vehicles, from jeeps to
\nMercedes, so it is obvious that I face a great loss,\" he said.<\/p>\n
Businesspeople also pay for monthly maintenance, which can
\ncost at least Rp 150,000 per car, excluding annual insurance
\nfees, which can reach 3 percent of a car's price.<\/p>\n
He said that a businessperson who wants to establish a car
\nrental company must invest billions of rupiah to purchase cars
\nand other necessary expenses.<\/p>\n
Bali's car rental business had its glory days in the early
\nl980s, when the island experienced a tourist boom.<\/p>\n
But now, the decreasing number of tourist arrivals has badly
\naffected the car rental business.<\/p>\n
An employee of CV Bali Orient, a car rental firm, said, \"We
\nhave received only a small number of customers, compared to
\nDecember last year.\"<\/p>\n
To build a healthy business, each company should rent at least
\n75 percent of its cars each month.<\/p>\n
\"But, it is very difficult to achieve such a target at this
\ntime of year,\" he said.<\/p>\n
Currently, there are about 86 car rental companies in Bali
\noperating more than 1,100 cars and hundreds of bicycles and
\nmotorbikes.<\/p>\n
Dwi Yani, a tourism observer, said that the paradise island of
\nBali has been hit not only by economic but also by social and
\npolitical conditions in Indonesia.<\/p>\n
Starting from Aceh, Maluku, Irian Jaya and East Timor, to the
\nriot recently in Bali, the problems in these areas have badly
\nchanged the image of Indonesia as a safe tourist destination.<\/p>\n
\"At first, many visitors were not influenced by the news of
\nriots and commotion of other islands outside Bali. But when Bali
\nwas ransacked and burned by followers of a certain party, Bali's
\nface was bruised,\" he said.<\/p>\n
A large number of airline companies, hotels and travel agents
\nhave received bulk cancellations from potential clients.<\/p>\n
\"The most recent incident was the Kerobokan incident, in which
\nhundreds of convicts ran away from the Kerobokan prison, located
\njust five kilometers from the island's most popular tourist spot,
\nKuta,\" Dwi said.<\/p>\n
Currently, many travel agents in European countries, the
\nUnited States and Japan have decided to send their clients to
\nalternative destinations in Thailand, Fiji and other exotic
\nplaces in the Pacific.<\/p>\n
\"Usually, in the second week of December, both domestic and
\nforeign tourists are already flocking the island,\" Dwi said.<\/p>\n
Today, many hotels in Bali are only able to fill 40 percent
\nfrom their occupancy rates.<\/p>\n
In addition to the economic downturn, Bali's car rental
\ncompanies are facing other problems, like car theft.<\/p>\n
It is no secret among businesses that these crimes are
\norganized by a syndicate which sets rental cars as its main
\ntarget.<\/p>\n
Data from Bali's police department shows a steady increase in
\nthe number of car thefts. In September, police recorded 54
\nthefts. The number increased to 68 in October and 70 in November.
\nIn the first week of December, they have already recorded 35.<\/p>\n
An owner of a car rental firm said, \"Once, a man with his
\n'family' hired a car from my company saying they were taking a
\nvacation in Bali, but the car never came back.\"<\/p>\n
He said he lost three cars and a number of motorbikes this
\nyear. The crimes were generally committed by local people.<\/p>\n
\"All entries to Bali including ferry ports are tightly guarded
\nby the police and immigration officers but the thefts still
\nhappen,\" he said.<\/p>\n
Lt. Col. Y. Suyatmo, head of information section of Bali's
\npolice, admitted it was difficult to deal with car thefts.<\/p>\n
\"We can only solve 15 percent of the reported thefts,\" said
\nSuyatmo.<\/p>\n
Many owners of rental car firms in Bali are pessimistic about
\nthe future of their businesses. But, with the coming of the year
\n2000, there might be a hope for them, as the country's economy
\nand political condition are predicted to recover soon. (I Wayan
\nJuniarta)<\/p>",
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