Indonesia a lucrative market for security services

Indonesia a lucrative market for security services

Rudijanto, Contributor, Jakarta

The recent raids by the Indonesian police on terrorist hide-
outs were able to kill one of the most wanted men -- Malaysian-
born Dr. Azahari bin Husin -- but the terrorist threat and other
security concerns in the country are expected to persist next
year.

While Azahari's death will certainly reduce the capability of
the terrorists to launch an attack, many people still fear that
the terror is far from over.

"The security situation in Indonesia now is much the same as
it has been over the past few years in that we are still faced
with many of the same issues, with terrorism remaining a key
threat and concern," says Nick Duder, President Director of PT
Hill Konsultan Indonesia (Hill).

Certainly, one should not expect that with the death of one
top terrorist, the security concerns will disappear overnight.
While followers of radical ideas still pose a deadly threat, the
recent sharp rise in fuel price could be another potential source
of security concerns.

Groups affected by the fuel price hike, such as drivers, urban
dwellers and factory workers could be easily encouraged to engage in
violence and crime. Thus, aside from street rallies, the general
crime rate is also expected to rise.

The recent psychological terror waged through text messages
threatening violence on certain minority groups, including non-
Muslims and Indonesians of Chinese descent, has raised fears of
large scale riots in the country similar to those of 1998, though
such an eventuality is unlikely to occur.

"As a result of the recent fuel increases, which have impacted
on people's livelihoods, we expect to see more public protests
and demonstrations although large scale civil unrest is an
unlikely scenario," adds Duder.

A similar opinion was expressed by S. Rahardja, President
Director of Secom Indopratama (Secom), another security
consultancy firm. Rahardja believes that large scale riots will
not occur.

"I think the people have learned how destructive the 1998
riots were. When people in demonstrations, their goal is to being
about improvements. In addition, this situation will not last
long as there will be wage increases," says Rahardja.

Indonesia is certainly facing a difficult time and is still
struggling to overcome various challenges, including security
threats. However, many security consultants believe that the
government is on the right track.

While the country is working hard to prepare the
infrastructure needed to combat various security threats, a
culture of fear has been developing among some business
communities, and religious and ethnic minorities.

This is the reason that the country has become a rapidly
developing market for security consultancy firms, security
providers and security equipment firms.

As Indonesia is still perceived as a high risk place to do
business and to live, the demand for security consultants and
services is on the rise.

"Our 'Asset Protection and Enterprise Security' services
continue to be in high demand, primarily from MNC's who need to
ensure that they have updated contingency plans for dealing with
various risk scenarios that may impact on their operations," says
Duder.

He adds that these plans have to be rehearsed so that Crisis
Management Training is also a key component. Thus, security
audits and risk assessments, together with protective services,
continue to be in regular demand.

Not only that, Hill's Business Information and Integrity Risk
service is also growing with companies having to institute and
maintain good corporate governance, and address compliance
issues.

"As Indonesia is still considered a high-risk country, fraud
risk mitigation strategies and the need for due diligence on
business partners and new employees is critical, especially for
new companies entering the market," Duder says.

Like Hill, Japan-based Secom has also been expanding its
market. Not only does it have a good grip on the Japanese
corporate segment in Indonesia, Secom has also gained a foothold
among other foreign-based segments, including Middle East-based
corporations.

Since some years ago, Secom tried to cultivate the residential and
shop-house segments by offering alarm equipment that is
continuously monitored by Secoms headquarters in Jakarta.

"These two markets, the residential and shop-house segments,
are not fully developed. We are offering them products, namely
alarms connected to and monitored continuously by our office, at
a very affordable price and monthly fee," says Rahardja.

Secom is proud of its man-machine system, believing that
maximum security can be obtained through a combination of
manpower and sophisticated equipment. That is why aside from
providing security guards for corporations, the company also
provides various sophisticated types of equipment.

A manufacturer of window glass film, 3M has also experienced
a strong demand for its products, namely Scotchshield Ultra
Safety & Security Window Films (Scotchshield), this year. The
window glass film is designed to protect people inside a building
from deadly window fragments in the event of bomb or industrial
explosions.

"The demand for our Scotchshield window glass film has kept
increasing this year and we expect an even bigger demand for it
next year," says Henry Siregar, Division Manager of PT 3 M
Indonesia (3M).

Without a good quality window glass film, glass fragments with
the speed of 30 meters per second can injure people inside a
building near a blast site or even during a powerful earthquake.

3M is the inventor of the window glass film. Its glass window
products have passed various tests by governments and private
agencies in Australia and the UK. In all of those tests, 3M's
products have been able to hold panes of together during the
explosion of various types of bombs, including TNT, pipe bombs
and Molotov bombs.

The company developed window glass in the 1960's as a response
to bomb threats from the Irish Republican Army (IRA). As a result
of ongoing development over 40 years, Scotchshield offers
security to office, hotel and apartment managements who need to
safeguard the safety of their tenants.

Compared to other window glass films available on the market,
3M says that Scotchshield Ultra Safety & Security Window Films
(Scotchshield) have far stronger tear-resistance.

As security concerns are expected to remain the same or even
increase during the first quarter of next year as a result of the
fuel price hikes, players in the business of security consultancy
and services remain optimistic about market prospects next year.

While many consider Indonesia to be a high risk country, these
security providers believe that every cloud has a silver lining.