Sat, 08 Oct 2005

Brass industry facing collapse after bombings

Indra Harsaputra, The Jakarta Post/Mojokerto

Sumarni, 46, a brass handicrafts artisan in Bejijong village, Trowulan, Mojokerto, is at a loss to know what to do now that the distributor from Bali has temporarily halted buying the brass statues now lining up in her house. She says that last Saturday's blasts and the recent fuel price hikes were behind the falloff in orders. "I'm confused about what I'm going to do with the merchandise. I have to pay the production costs and workers' wages," she told The Jakarta Post.

She then recalled the bomb attacks on Bali in 2002, when production was totally paralyzed. She had to close her business for two months and her 45 employees were laid off. After reopening, her business slowly started recovering, albeit slowly. Despite a 50 percent drop in turnover from Rp 40 million (US$4,000) before the bomb scare to Rp 20 million now, she was still able to produce and sell the handicrafts. The business had fully recovered a year later.

However, her relief was short-lived. With her business starting to thrive again this year, the government increased fuel prices on Oct. 1, dealing another blow to the brass handicrafts industry in Trowulan, the former center of the Majapahit empire. The increase in fuel prices has resulted in the price of brass increasing from Rp 18,000 per kilogram to Rp 24,000 per kg.

The increase in metal prices resulted in the distributors from Bali temporarily halting their orders until price adjustments were made to take account of the fuel price hikes.

As a result, Sumarni has been forced to lay off eight of her 45 employees, while the other workers have had to take holidays while awaiting for new orders from Bali.

"Before the bomb attacks, the demand had dropped due to the increase in metal prices. These were just the culmination of a series of problems arising from the fuel price hikes," said Sumarni.

The brass handicrafts industry in Trowulan is the main source of income for local people, besides carving stone sculptures.

There are at least 40 craftsmen working in the trade, while many more people are employed as menial laborers earning between Rp 10,000 and Rp 17,000 per day.

Sumarni is still very fortunate compared to the other people in Trowulan who rely totally on the handicrafts trade.

During the downturn, Sumarni can still earn money by selling basic necessities, such as rice, coffee and sugar, as well as from the telecommunications kiosk she runs. However, for craftsman like Sunardi, 40, whose business had yet to recover from the previous bombings in 2002, the increases in fuel prices and the recent bombings will almost certainly force him out of business.

He said the fuel price hikes had triggered a rise in the cost of materials, and had resulted in the distributors postponing making purchases.

The fuel price hikes and the bombings in Bali had had a negative impact on his earnings, which had dropped by nearly 70 percent from his previous average monthly earnings of about Rp 30 million.

"Bali is where all the families' earnings come from. It's inconceivable to think that the bombers, who are Indonesian citizens, could destroy the livelihoods of their fellow citizens," he said.