Jakarta retailers pinched by latest round of riot rumors

JAKARTA (JP): Retailers in Jakarta suffered more than an 80 percent drop in sales last week as rumors of impending riots multiplied ahead of the Nahdlatul Ulama (NU) mass prayer gathering and the House of Representative's plenary session to decide on the issuance of a second memorandum of censure against President Abdurrahman Wahid.

Indonesian Retail Merchants Association (Aprindo) executive director Kustarjono Prodjolalito said on Monday that supermarkets were estimated to have suffered a 75 percent drop in sales, while department stores suffered the most with a 90 percent drop compared to the week before.

Rumors of massive riots beset the capital over the weekend when about 300,000 of Abdurrahman's supporters from across Java entered Jakarta to attend the mass prayer organized by Muslim organization Nahdlatul Ulama on Sunday.

Although NU leaders had asked them to immediately return to their home towns, many remained in the capital.

At least 6,000 of those who refused to go home staged a rally on Monday, but refrained from entering the House of Representatives complex. They, however, warned that there might be a riot if the President were ousted.

More than 50 percent of retailers in the Glodok electronics market, Mangga Dua garment wholesalers and Tanah Abang textile merchandisers decided to open for a half day on Saturday and close shop on Sunday and Monday due to fears of possible chaos.

Kustarjono said that the drop in supermarket sales could be offset by higher sales before the weekend as people were likely to stock up on food.

"For supermarkets it's not all that bad. People still have to eat and I presume that they stocked up on food before Sunday," Kustarjono told The Jakarta Post.

He said the situation was different for department stores specializing in clothing.

"People go to department stores especially to buy clothes, maybe because of style, color, etc," Kustarjono said, adding that with the rumors of unrest circulating, people were less likely to even go window shopping.

Retail prices had also risen by an average of 15 percent on the wings of panic-buying and the shortage of some stock, such as infant milk formulas, on store shelves, Kustarjono said.

The Director-general of Domestic Trade of the Ministry of Industry and Trade, Teddy Setiadi, said the increase in prices were a psychological factor which would decrease as soon as the fear of riots subsided.

Kustarjono said that, while sales during the first three months of the year had increased by 6 percent compared to last year, April would not offer very cheery results, and the next few months would largely depend on the economic and political situation.

Total sales of Aprindo's 280 retailers between January and March this year reached Rp 6.9 trillion (about $584.7 million), up from Rp 6.52 trillion during the same period last year.

In April, however, the value dropped slightly to about Rp 1.95 trillion (about $165.25 million), compared to Rp 2.05 trillion in April last year, he said. (tnt)