Only companies with good reputation can survive

Sudibyo M. Wiradji, The Jakarta Post, Jakarta

Despite a decline in the number of expatriates living in Indonesia, most big moving companies with years of experience and good reputations have been able to survive the tough times.

"There are always expatriates coming and going and those companies which offer high quality services will continue to receive orders," says Douglas G. Slusher of Worldwide Movers/PT Gelombang Fajar.

For such companies, the orders are still flowing in, particularly from expatriates working at foreign embassies and oil and mining companies, as well as from students at international schools.

The chaos following the riots of May 1998 was a "blessing in disguise" for most moving companies in town. Between 1998 and 2000 when many expatriates left the country for security reasons, most moving companies enjoyed a brisk business.

Now several years later, however, most moving companies are facing tough times due to the continued decline in the number of expatriates.

Companies with a good reputation usually have regular customers. For these companies, business continues to come their way.

In the months of May, June and July, moving companies usually receive orders from students at international schools leaving Indonesia to return home for college.

Another peak season is November and December, when expatriate families leave the country for a long holiday.

"Demand for inbound moving services starts to increase in January, July and August, with the start of the school year at international schools," Slusher said.

Moving companies vary in the services they offer, but in general they provide a range of services both locally and overseas, including door-to-door or door-to-port moving of household goods, general cargo and storage.

Most expat families prefer using moving services when it comes to household goods delivery because moving companies also include packing, transporting, handling, loading and unloading.

Established in 1979, Worldwide Movers also provides moving services for fine art and antiques, trade show displays and exhibitions. Its relocation department also provides services that include a corporate and transfer preview program, documentation management, complete real estate services, school visits and assistance with selection and enrollment, a departure program, city orientation and settling-in packages, and business and social adaptation assistance.

Dozens of companies are engaged in the moving business. Worldwide Movers/PT Gelombang Fajar, PT Citra Airline & Storage, Move Well (PT IFM Graha Sarana), PT Crown Relocations, Santafe (PT Global Santa Indonusa), PT Pacific Removindo and PT Prima Star Movers are among the top 10 companies in the sector.

Unlike in other businesses, the rates offered by moving companies generally remain stable despite the tight competition.

"This is because most of the clients, especially multinational companies, make quality and service their main consideration," says Worldwide Movers' Slusher.

Worldwide Movers has three warehouses: in Jakarta, Balikpapan and Surabaya. The Jakarta warehouse facility has a bonded warehouse. All of the warehouses have 24-hour security.

Like other moving companies, Move Well does not rely solely on price to attract customers, realizing that clients, particularly multinational companies, make good service their top priority.

"In our company's experience, individual expat families are not directly involved in moving matters because their companies provide a moving allowances and take care of the details. So we a make a deal with a representative of their company," said Well Move operational director Djoefri Hartugi.

The company, which opened seven years ago, does everything in its power to provide the best service possible. To ensure safe land deliveries, Djoefri said, the company employs capable and trustworthy crews with years of experience in the industry.

"Because we pay great attention to all aspects, including arrangements, packing and transporting, we have never received a complaint from our clients," he said.

Djoefri said that outbound moves were more lucrative for the company than local ones. "The revenue generated from the outbound moving service is much bigger than that received from local moves because it involves the cost for freight."

In addition to inbound and outbound moving services, the company also provides office relocation and document management and storing services.

With expatriates as their main customers, moving companies seem to be inseparable from the flow of expatriates.

Those involved in the sector said that if the country's economy continues to improve and the country attracts more foreign investment, then more expatriates will move here. That would be good news for the moving industry.

"With some early signs of economic recovery, including a stable rupiah and more expatriates returning, the moving business has good prospects," said Djoefri from Well Move.