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)