Jakarta's gold traders face slow business

JAKARTA (JP): With political and economic stability continuing to plague the country, the gold business in the capital has remained a sluggish one.

The owners of several jewelry stores on Jl. Melawai in South Jakarta told The Jakarta Post on Tuesday and Wednesday people were hesitant to purchase or sell gold because of the political and economic uncertainties.

"People currently are choosing not to buy or sell gold because on the following day the price might fall or jump significantly," Syahrial, who owns Indonesia Jewelry, said on Wednesday, adding that business had been slow since the economic crisis first struck the country in 1997.

Syahrial said that shortly after the onset of the crisis, numerous gold store owners in the capital sold their stock to Singapore. "Traders sold their gold to Singapore because they didn't want to keep their goods in storage for too long (while waiting for more stable gold prices)."

Burrahim, the owner of Rommy gold store, was of the same opinion as Syahrial. "I have three gold stores, including two in Mayestik (in South Jakarta). All three are experiencing slow business."

This slowdown in business also is effecting the gold dealers who operate in front of Perum Pegadaian pawnshop on Jl. Senen Raya in Central Jakarta.

A 72-year-old gold trader stopped two people who were making their way into the pawnshop on Tuesday, asking if they were planning to pawn gold. When they said no, she looked disappointed and returned to her seat near the shop's entrance to continue her wait for customers.

"I haven't had a deal for a week," the woman said. "It's very busy here, but no one has come to my stand."

She refused to give her name, saying she was afraid of embarrassing her son-in-law because she worked as a street gold dealer. "He's a doktorandus (university graduate)."

Other gold traders working along the streets in the area also said they were finding it difficult to locate business. "Most people sold their gold when the (economic) crisis began, now they have nothing to sell," Alay, 34, who has been in the business for 10 years, said, adding that the gold business was now slower than it was prior to 1997.

A 61-year-old vendor said in the past many people purchased and sold gold in the area. "But now, as you can see, there are no customers here," she said, adding that the street dealers only earned Rp 3,000 (33 US cents) for each gram of gold they bought or sold.

There are, however, some gold stores which have avoided this general sluggishness. One of these is Senang Hati on Jl. Palmerah in West Jakarta.

Lusiana, the owner of the store, said she was benefiting from the start of the new school year. "Many people from the middle and lower-classes sell their gold to get cash for their children's school fees and school supplies." (08)