Mashrooming Internet cafes facing tight competition

Mashrooming Internet cafes facing tight competition

By Tri Hafiningsih

JAKARTA (JP): For 15-year old Wulan, chatting with someone
through the internet is "her kind of thing," besides going to
movies, listening to her favorite music, or discussing the latest
gossip with her peers.

But the same hobby at home would cost more than she could
afford. "I once had to pay over Rp 1 million for a month's phone
bill," complained Wulan's mother. So, her mother Henny told her
to go to a warnet (Internet kiosk) instead, and pay with her own
pocket money.

That would not be difficult for Wulan. Warnet are mushrooming
all over the city, including in her neighborhood in Tebet, South
Jakarta. At least five new warnet have opened in the area in the
last three months. While the rate for using the Internet in a
shopping mall could be as high as Rp 12,000 per hour, Wulan just
pays Rp 5,000. She gets a student discount if she uses the
computer for over two hours.

"I often pay less as I share it with my classmates and
friends," she said, adding that beside chatting, she could scan
through the latest Disney movies, fashion trends, or gossip about
world celebrities.

Warnet have become an important commodity in the daily lives
of many, especially young people. You can access the latest
information on anything you can think of. From the computers
installed in these tiny shops, you can just click a few times to
get information on the latest movies, tips to buy an affordable,
used car, jobs on the market, or the latest calculation of the
world population. Sending or receiving e-mails are other "usual"
things you can do.

For Mita and Arief, high school and university students
respectively, warnet are good sources of information as they do
not have Internet at home. Mita goes to warnet to look for
information on various subjects for her schoolwork.

"I don't have to read too many books, when I need more
information on 'Satellite Images,'" said Mita, recalling her
latest schoolwork using Internet-based information. While for a
student majoring in Literature like Arief, browsing the internet
is a fun way of learning literature. "I often do it for hours,"
he said.

The demand is high, so the warnet business seems to be
enjoying prosperous times right now. But the competition is
tough. Mushrooming warnet owners have to think of something new
to attract customers.

The newly-opened Lafanet provides computer rental for a lower
rate, besides the usual Internet facilities. Those who want to
type long letters or write essays can use this service. Unlike
some other warnet which charge the general public more than
students, Lafanet sets the price of Rp 5,000 per hour for both
the general public as well as students.

Another warnet, Casablanca-Net, opens early and closes at
midnight.

Various methods are used to attract Internet fans as well as
newcomers to the warnet. Some of the kiosks have started to slash
their rates to do so. Some of the kiosks on the outskirts of
Depok, where many schools and universities are located, offer
services for only Rp 4,000 per hour.

Siberinet owner Hastiyudo Wibowo expressed concern over such
unfeasible price cuts for the service saying that it would only
damage the future of the business.

"They should instead provide better services or diversify the
services to achieve better positioning in the business," he said.

New options for Internet fans in warnet are available and it
is changing fast.

E-mail clients, web-site designs or VoIP are some of the
options which could be offered by warnet, Hastiyudo said. "If we
can't keep up, we'll be left behind," he said.

He said the new services would also open up warnet to a wider
range of users, not just students or the younger generation who
are their main customers now. "We can cater to a broader general
public from all levels if we have what they need, like housewives
or other professionals, for instance," Hastiyudo said.

Another warnet owner said that there are still great
opportunities in the business. "There are still too many people
who simply know nothing about the Internet," said Santo, who owns
an Internet kiosk in Ambassador shopping mall in South Jakarta.

He believes despite the mushrooming of newly opened kiosks all
across Jakarta, the market for new warnet users is still
promising.

He said the situation is more or less the same as when people
started to use cellular phones. "People have been familiar with
mobile phone technology for around five years, yet the business
is still booming," he said.

Cases of price slashing of warnet services, are also one of
the issues discussed in the AWARI (Indonesian Internet Kiosk
Association) meetings recently. The organization was established
just over three months ago with a mission to provide easy and
cheap access of information to all levels of the society through
warnet, as well as to overcome problems faced by members,
relating to government permits and regulations in the business.

But so far, there is no consensus on a feasible, minimum
charge for Internet users in warnet.

The chairman of the association Rudi Rusdiah said there should
be a better solution than a "price war".