Conveniences abound for urban shoppers
Despite the bleak economic outlook, shoppers are being lured by offers of membership to services promising lots of perks. The Jakarta Post reporters Ahmad Junaidi, Arief Suhardiman, Benget Simbolon, Emmy Fitri, Kornelius Purba and Riyadi, take a look at this development. Related stories on pages 3 and 9.
JAKARTA (JP): In a country where 90 percent of transactions are in cash, people are starting to fall for the gimmicks used to convince people to sign up for what companies claim is a more modern lifestyle.
Since credit cards were introduced in Indonesia eight years ago, cardholders have reached 1.8 million, said Sasongko Sukanto, chairman of the Indonesian Credit Card Association.
Bank Bali executives who developed a charge card concept and "lifestyle" called KualiVa, say membership has reached 750,000 since its launched in 1995.
People with a monthly income of only Rp 500,000 are eligible for Ramayana, Robinson and Matahari department stores charge accounts: Ramayana says it has approved 35,000 applications since the introduction of its card in August last year.
KualiVa gives points with every transaction. Each point is worth Rp 1.
According to KualiVa, efficiency is imperative for the busy worker; look no further because your trusted bank has selected market leaders to look after your every need.
After years of hard work and effective spending, a professional earning, say, Rp 4 million a month may sit back and observe the rewards of saved expenses (due to points earned) -- with the knowledge that a small percent of each transaction goes to charity.
A KualiVa member shopping at Hero supermarket in CitraLand Mall said that, because there was a special counter for member, he only enjoyed not having to queue.
Such accounts are fast becoming the trend of the 21st century, where the people plan expenses on guaranteed quality products and services.
Sociologist Sardjono Jatiman is not convinced that today's offers lead to "more rational" spending.
This is part of the inevitable social change affecting many people, from shopping for need to shopping for shopping's sake, "to which businesspeople are very responsive and creative".
The trouble, he says, is that "we're used to holding money, and can't count expenses when we're just signing a form."
Sardjono says people are only after symbols of modernity, where it is no longer cool to flash cash like a rich farmer.
Card issuers remain optimistic over the vast potential of business here. Lelyanti Kurniawan, sales director of Citibank, said members of Citibank Gold and Master cards have 750,000 members, 50 percent of the market share.
"We expect a growth of about 20 percent per year," she said, pledging to improve services with growing competition. Bad debts are still small, "we can retrieve over 90 percent of debts," Lelyanti said. There are no plans to make membership charge cards like Bali Bank, she added.
"Some say the wealthier the people, the less they need credit cards... but I don't think so. We offer convenience, a worldwide service" and a tolerated card overlimit of up to 50 percent.
One consumer sings her praise for plastic money, as long as one is careful. Esti, not her real name, a 30-year-old employee of a city office says her monthly salary is less than Rp 500,000 (about US$178). She just applied for a credit card which requires a minimum salary of Rp 24 million per year. After filling in the form which she acquired from the office's finance division, she "adjusted" her salary to meet the requirement.
"My colleagues do the same thing," she said.
"Banks won't do anything if they find out we submit a fake salary statement... we'll survive as long as we pay the bills on time, calculate our expenses and shop carefully," she said.
Why go to such extremes? Esti says it is wonderful to have the card in her thin brown wallet and being fawned over by shopkeepers.
"We get different service if we say we're going to pay with our card; shopkeepers are more friendly because they think we are rich," Nina said.