Prolonged crisis leads to gloomy parcel business

Prolonged crisis leads to gloomy parcel business

JAKARTA (JP): The end of the year is nearing but the usual joy
at the thought of the holidays -- Christmas, New Year's Day, Idul
Fitri and the Lunar New Year -- is hardly felt, because Indonesia
is still suffering the pains of the prolonged economic crisis.

In the past, one could feel the radiant spirit of Christmas
and the New Year by the end of November, as demonstrated by the
many people flocking to shopping malls and department stores to
buy new clothes for their family, or cards and gifts to send to
their friends or loved ones.

This year, due to the weakened rupiah, the large number of
people who have lost their jobs due to company closures, the
scant business opportunities and the soaring prices of goods and
services, many people are being forced to be increasingly
thrifty, spending their money on the basic necessities.

Despite the tight budgets, some people will still remember
their colleagues, friends and family with flowers, cards and
presents, although the number of packages being sent will likely
fall substantially.

"I predict that this year will be no boom, even though most
people usually have the tradition of maintaining their
relationships. But we have still received orders from some of our
dependable clients," said Fahira Fahmi Idris, owner of Galeri
Nabila parcel and florist, on Jl. Haji Samali in South Jakarta.

She said that a nicely decorated package of delicacies could
be sent to express gratitude and appreciation, like a
businessperson thanking the people who have helped to make his
business a success.

"The collapse of companies and the decline in business
activities have not prevented such people from sending gifts.
They still believe that the crisis is only temporary, but
relationships with colleagues are forever," said Fahira, who is
also the daughter of Minister of Manpower Fahmi Idris.

She admitted that her company has lost some potential
customers, including employees of closed banks and companies.

Other clients, she said, have decided to cut the amount of
money they usually spend on parcels.

"Those who used to purchase parcels worth Rp 500,000 (US$67)
now buy gifts valued at between Rp 150,000 and Rp 350,000," she
said, adding that until January the company is also offering a
discount of up to 10 percent for packages worth at least Rp
100,000.

The crisis had also forced the company, which owns 26 outlets
across the capital, to reduce the number of its employees from 80
to 40, she said.

Fahira said that her parcels were priced between Rp 100,000 up
to Rp 2 million.

"We used to make packages valued at up to Rp 5 million. Now we
concentrate only on products costing between Rp 150,000 and Rp
350,000. We are trying to be realistic, because if we produce
costly packages nobody will buy them," she said.

Rawina, manager of Laxmi Kreasi Florist on Jl. Talang Betutu
in Central Jakarta, predicted that her company's orders would
fall by some 30 percent from last year.

"Many of our customers have been forced to close their
businesses due to the mid-May riots, so now they are not placing
orders with us," she said.

She said, however, that the company did not plan to reduce the
prices of their packages, as the prices of delicacies and
decorations were also high.

"We could arrange the contents of a package to suit a
customer's available budget," said Rawina.

She said that the minimum price for a parcel from her company
was Rp 150,000, and the maximum price reaching Rp 1.5 million.
(ivy)