Middle class deals with crisis fallout<\/p>\n
The boom days of economic development this decade supported a
\ngrowing middle class boasting fat paychecks and ample disposable
\nincome. Conspicuous consumption was their byword for living
\nbefore the sobering realities of the economic crisis hit home.
\nBut have they really changed their habits? The Jakarta Post team
\nof reporters -- Reiner Simanjuntak, Christiani S. Tumelap,
\nAloysius Unditu, Ivy Susanti, P.J. Leo, Imannudin and T. Sima
\nGunawan -- talks to those in the know.<\/p>\n
JAKARTA (JP): Life is like a roller coaster ride, we are told.
\nIt has its ups and downs. Sometimes we are happy and fortunate,
\nwhile other times we experience sadness and bad luck. And now,
\nwith the country in economic turmoil, most of us are apparently
\ndistressed.<\/p>\n
To survive the monetary crisis, many have had to take bold
\ncost-cutting measures, including smaller budgets for daily
\nexpenses such as food, drink and entertainment.<\/p>\n
Utomo, a 40-year-old entrepreneur, has sold one of his cars
\nand slashed other expenses, including limiting the use of his
\ncellular phone.<\/p>\n
Silvy, a young executive who earns Rp 2 million a month, is
\nconsidering selling her cellular phone.<\/p>\n
Owning a cellular phone, or hand phone as it is popularly
\ncalled here, has become a status symbol among yuppies. Last year,
\nthe number of cellular phone users grew 100 percent. But many of
\nthem apparently were not prepared to face the bill since using a
\ncellular phone is more expensive than talking on an ordinary one.<\/p>\n
In February, unpaid customer bills throughout the country
\ntotaled Rp 200 billion (US$26.66 million).<\/p>\n
Silvy admitted that she had yet to pay last month's bill,
\nwhich totaled Rp 300,000.<\/p>\n
\"I still have other things to pay, including my Rp 550,000
\nmonthly installment on my second-hand Kijang van.\"<\/p>\n
She said she would not have any problems parting with the
\ncellular phone since she was from a modest Central Javanese
\nfamily. \"I might even sell my car as well if they increase the
\ninstallment. That's fine, I used to take public transportation.\"<\/p>\n
Ferry Humanto, an executive at Bank Bira, does not have to
\nsell his car or cellular phone. A hard worker, he used to play
\nhard, too. But not anymore.<\/p>\n
\"I don't go out as often as I used to since prices of most
\nthings, including food, have increased drastically,\" he grumbled.<\/p>\n
Prices have skyrocketed following the 70 percent plunge of the
\nrupiah's value against the U.S. dollar since last July. In the
\nfirst quarter of 1998, the inflation rate soared to 25.13
\npercent, with month-on-month inflation rising 5.49 percent in
\nMarch, according to the Central Bureau of Statistics.<\/p>\n
Posh outlets<\/p>\n
The price of a meal at a fast-food restaurant, consisting of a
\nhamburger and a coke, has increased 100 percent and now costs as
\nmuch as Rp 8,000.<\/p>\n
Aqua bottled water, which costs Rp 1,000 per bottle at the
\nsupermarket, is sold for Rp 18,000 in posh food outlets. In one
\ncafe on Jl. M. Thamrin, the price of a sandwich -- one of the
\ncheapest items -- has increased from Rp 15,000 to Rp 35,000. A
\nportion of sukiyaki at a Japanese restaurant in a five-star hotel
\nwas Rp 50,000 before the crisis. Now, it is Rp 120,000.<\/p>\n
It's no wonder that local yuppies now have to think twice
\nbefore eating out at lavish restaurants or drinking at bars and
\ncafes.<\/p>\n
Interior designer Kirwan Harsono, owner of PT Kirassko Toma
\nMandiri, said he used to dine out almost every night.<\/p>\n
\"Now I prefer to eat at home. I ask my wife to cook,\" the 35-
\nyear-old father of two said. \"Well, in a way, this crisis brings
\nme closer to my family.\"<\/p>\n
He also has to carefully consider shopping prices. \"I like
\nHugo and Armani, and I still wear them instead of local brands.
\nSince prices are soaring, I'll have to shop less often.\"<\/p>\n
Hugo Boss brand's local manager, F.X. Khrisna Moran, said he
\nused to sell one or two suits a day, with each costing Rp 5
\nmillion to Rp 10 million. \"Now it's probably only one a month.\"<\/p>\n
Williarty Aliwarga of Prada said that local yuppies now came
\nto her store just to window shop.<\/p>\n
Shopping malls, department stores and supermarkets are still
\ncrowded. It's no secret that shopping has become a lifestyle for
\nyuppies, as well as many other people. But whether they buy
\nthings or just look, that is another story.<\/p>\n
Business is terribly slow. Kirwan, whose major clients are
\nhotels and apartments, has laid off half of his office staff. He
\nhas also had to let go of 125 of the 200 workers in his workshop.<\/p>\n
The government has said that as of the end of February, the
\nnumber of workers dismissed by companies troubled by the monetary
\ncrisis totaled more than 1.5 million.<\/p>\n
Unemployment will decline only after the crisis recedes. But
\nthat will take some time. The Asian Development Bank has
\npredicted that Indonesia's economy, the most serious casualty of
\nAsia's financial crisis, would not recover until 2001.<\/p>\n
The government, aware of the debacle, predicts a minus 4
\npercent growth during the 1998\/1999 fiscal year -- a drastic drop
\nfrom the average of between 6 percent and 7 percent annual growth
\nover the past decade.<\/p>\n
People are suffering from the severe impacts of the crisis.
\nCrime and suicide rates are on the rise. In Surabaya, an engineer
\nwho was caught stealing a gold necklace said he did it because he
\nlost his job. More than 45 people in Jakarta have taken their own
\nlives this year for various reasons, including increased economic
\nburdens, while mental hospitals are crowded with new patients.<\/p>\n
Clearly, the crisis has stressed out people. For yuppies,
\nrelaxing at cafes is still a favorite way to relieve their
\nstress.<\/p>\n
This, however, does not mean that the city's 3,200 night spots
\ndo not feel the crisis' pinch.<\/p>\n
\"We still have a lot of visitors, but with less buying power,\"
\nPaulus Panggabean, general manager of Fashion Cafe, said.<\/p>\n
Dropped<\/p>\n
In News Cafe, the average spending per person per visit has
\ndropped 50 percent, according to Shanti Shamdasani, the marketing
\nmanager. She said visitors tended to come just for a drink and
\nlisten to the music. \"They have their dinner at the office or
\nhome to save money.\"<\/p>\n
Both Panggabean and Shanti, however, believed that Jakarta's
\nnight spots would still be in high demand since people needed
\nentertainment to relieve their stress.<\/p>\n
Paulus Wirutomo, a sociologist at the University of Indonesia,
\nagreed. He was not surprised to find that pubs and cafes have
\nbeen crowded during the monetary crisis because such places were
\nmore than food and beverage outlets.<\/p>\n
\"They seek communication with others. They like being around
\nother people. They like meeting people,\" he said.<\/p>\n
So far, the crisis has not made people change their lifestyles
\nas much as one would expect, he said. \"If people can still have
\nfun at pubs, they have no sense of crisis.\"<\/p>\n
On the other hand, said Paulus, showing up at night spots
\ncould show others that one was still in good financial shape.<\/p>",
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