Fri, 02 Jan 2004

Parties boost T-shirt business ahead of 2004 elections

Yuli Tri Suwarni The Jakarta Post Bandung

Workers of the Rovolin T-shirt factory in Sadang Serang, Bandung, have been working long, hard hours for one month now in order to meet large orders from political parties as the 2004 general elections nears.

Similarly, the owner of Rovolin, J. Lumban Gaol, was busy, answering phone calls from his many clients and occasionally receiving party officials at his humble kiosk on Jl. Suci in downtown Bandung.

Gaol's T-shirt kiosk is not the only one on the street that is struggling to meet orders for campaign souvenirs and paraphernalia from political parties.

There are hundreds of other kiosks along Jl. Suci that have accepted orders for T-shirts, caps, jackets, vests and other products from political parties, and as with Rovoli, are running against time to meet them.

As many T-shirt makers line Jl. Suci, it is known among locals as the T-shirt center.

Gaol said the parties had ordered mostly T-shirts and caps from his kiosk, and he received the first order seven months ago.

"At that time, the quantity ordered was still in the hundreds. But now, I have received orders for a total of 4 million caps, 2.5 million T-shirts and 4,000 jackets," he said.

Orders have come in from at least 15 political parties nationwide contesting the 2004 general elections. The largest bulk orders have come from the two largest parties -- the Indonesian Democratic Party of Struggle (PDI Perjuangan) and the Golkar Party.

While most of the orders came in from Jakarta, they also came in from as far away as Sangihe-Talaud in North Sulawesi, Prabumulih in South Sulawesi, Palangkaraya in Central Kalimantan and several cities in East Kalimantan.

Among the Jl. Suci entrepreneurs, Rovolin is known to cater especially to political parties, which order party paraphernalia in large quantities.

Gaol adjusts his prices according to the materials requested and the volume of the order -- the greater the volume, the lower the price.

His workers produce an average of 2,000 T-shirts a day, and if the order is excessively large and made at short notice, he shares the task among neighboring kiosks.

"Pricing and delivery are the two key factors that determine our competitiveness," he said.

As with any business deal, party caretakers do not simply sidle up to the kiosk to place an order -- Gaol and others must participate in a small tender to win the account, submitting price lists and sample products before the tender.

In contrast to Gaol, Nanan Nasution, the owner of nearby Andessta kiosk, said he was not interested taking orders from political parties, because it was too risky for a meager profit. "We can only make a profit of Rp 500 per T-shirt, and that's not including the delivery fee," he said.

Nanan had only accepted orders for around 1,000 T-shirts and 80 jackets from Golkar Party leaders in Bandung and Makassar.

Gaol concurred that the profit he made from party orders was small.

"In fact, I only make a profit of 4 percent of the price, far lower than the profit I make from regular orders, which could reach 15 percent," he said.

As for business risks, he also agreed with Nanan. Gaol has taken orders from political parties since 1992, and he recalled that many political parties had cheated him.

"They didn't pay for what they had ordered, and eventually we sold the T-shirts at the roadside. That's why we're a bit strict now. We require a down payment first, then we'll start to work."

He also said dishonest practices was common among corrupt party officials, who would ask for an extra receipt: "They would retain one, mark up the price of the other blank receipt, and it's this one that they submit to their parties."

Despite the risks and small returns, Gaol continues with his business. "The profit per piece is chickenfeed. But in large quantities, the economy of scale allows us to reap huge profits."