Fallout with Australia hits Yogyakarta

Fallout with Australia hits Yogyakarta

By Sri Wahyuni

YOGYAKARTA (JP): The worsening relation between Indonesia and
Australia over the East Timor chaos is not just a problem for
elite politicians or bureaucrats. It has also affected
craftspeople, including those living in the handicraft village of
Kasongan, Bantul, on the outskirts of Yogyakarta.

For the last two months, fears about the future marketing of
handicraft products has been haunting the village of about 340
craftspeople. Many Kasongan products -- mostly earthenware jugs,
animal figurines and pots -- are exported to Australia.

"I haven't received any new orders from Australian buyers
since last month. It worries me a lot," Sareh, 40, one of
Kasongan's craftsmen told The Jakarta Post.

Sareh, owner of two ceramics showrooms and factories, said
that his factory used to export 10 to 12 containers of pottery of
various sizes and kinds a month, worth between Rp 16 million to
Rp 30 million per container. However, for the last two months he
exports only about one half of his normal consignment. Currently,
he has only six containers left to ship until December this year.
"Should the condition persist, I might have to stop production,"
Sareh said.

Despite the uncertain market, Sareh has so far been able to
manage to keep producing ceramics, hoping that time itself will
restore the business. It's not surprising therefore that piles of
products are filling up his two warehouses.

He has 70 workers and has not yet laid off any of them. "I'd
try my best not to do so at the present time."

Now that Australia has closed its doors to Kasongan products,
Sareh is trying to seek other prospective markets in Europe. In
cooperation with local furniture brokers, Sareh is introducing
his products to markets other than Australia. He has also
participated in several exhibitions held in the capital city of
Jakarta in the hope that other buyers will be interested in his
products.

Unlike Sareh, another craftsman, Bejo, 45, has been forced to
lay off 10 of his 100 workers. Bejo exports about 60 percent of
his products to Australia.

"My Australian buyers have told me they would not make any new
order for up to four months, or until the problem between the
governments of both countries is settled," Bejo said.

Previously, Bejo exported up to five containers of pottery a
month to Australia. Now he sells only one container a month. He
said he thanked God that he had also entered the European market,
namely the Swiss and Dutch markets, where he still can sell one
or two containers a month.

Before the ties with Australia deteriorated, Bejo was able to
attain a Rp 60 million turnover per month with a net profit of
about 25 percent .

"I cannot count on the local market. It contributes only about
Rp 3 million a month. See, it cannot even cover the monthly
expenses," Bejo said.

Sareh and Bejo are not the only craftspeople in Kasongan who
are suffering from the current situation. Almost all the
craftspeople there are experiencing the same thing. It's true
that only big producers export the products. However, small
producers mostly receive suborders from the larger producers.
Therefore, when big producers stop producing due to a lack of
orders, it directly affects the small producers.

The usual scenes of loading and unloading activities,
therefore, have been lacking in Kasongan for the last few weeks.
No trailers carrying huge containers are seen coming and leaving
in the narrow street. Previously, every day three to five
trailers transported the huge containers of pottery from the
village.

Chairman of the local industry agency Budi Haryono confirmed
the slump in the export of Kasongan products, saying the decline
was about 60 percent.

Last year, Kasongan exported 109 small containers and 167 big
containers of pottery. A small container measures 20 cubic feet
and the larger one measures 40 cubic feet. As of August 1999,
Kasongan has only exported about 20 small containers of goods.
"We're now looking for the best way to overcome the problem,"
Haryono said.

He said one way to do so was by shipping the containers
through Singapore first and then to the destination country of
Australia. This strategy would be taken to face the possibility
of Australian dock workers refusing to unload the merchandise.
"It works so far, but requires more transportation fees," Haryono
said, adding that buyers were willing to guarantee the extra
expense.

Haryono, however, is pessimistic about the possibility of
looking for prospective markets outside Australia. Past
experience has shown that there is no other market as with as
much potential as the Australian one. Nevertheless, he said his
office would keep exploring prospective markets outside
Australia, especially European ones.

"For the time being, I just hope the dispute between Indonesia
and Australia can be solved soon," Haryono said.