Jakarta retailers pinched by latest round of riot rumors

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)