Publishing industry fight for survival

The devastating economic crisis, combined with hefty taxation and a lack of interest in reading, continues to batter the publishing industry. In conjunction with National Book Month, which falls every May, The Jakarta Post's Rita A. Widiadana, Ida Indawati Khouw, Maria Endah Hulupi and contributor I. Christianto examine the dilemmas that the industry is facing.

JAKARTA (JP): Sunday is the best time for Budiarto and his family to shop for their favorite books at a nearby bookstore.

On this Sunday, they visited Gramedia Bookstore at Pondok Indah Mall in South Jakarta, which is near their home.

"I have always encouraged my two children to read good books. Going to a bookstore is part of our reward for their behavior during the week," says Budiarto, an oil company executive.

Budiarto's children, Dira, 8, and Denny, 10, are allowed to select children's books, comics or stationary items.

"Visiting a bookstore is a kind of 'intellectual' picnic for our family, an inexpensive activity that enriches our minds and broadens our perspectives," he added.

But in Indonesia, book lovers like Budiarto are a minority.

If you visit the homes of many affluent families, you may see elegant furniture, paintings by famous artists and a garage full of luxury cars, while not a single book, let alone a family library, is in sight.

For the poor majority, books are not on their list of priorities. Their main concern is feeding their hungry children.

Jakob Oetama, chairman of the Kompas-Gramedia group and treasurer of the Obor Foundation, admitted in a book seminar recently that Indonesians have been paying very little attention to development of the publishing industry.

"A book is a vital tool for educating people, to create a well-informed, cultured and democratic society," he said.

But the government and related parties have not yet given their full support to enhancing the publishing industry.

Poverty and a lack of interest in reading are not the only reasons why the publishing industry has continuously been struggling.

In fact ever since the New Order period, the future of the publishing industry has never been bright.

Alfons Taryadi writes in Buku dalam Indonesia Baru that there are several specific problems faced by the national publishing industry including lack of capital, ineffective distribution systems, low reading levels, low spending power, unstable paper prices and hefty taxation.

"Although book publication in Indonesia has existed since the l9th century, its development has been extremely slow and insignificant," Taryadi reveals.

Gloomy outlook

He cited, as an example, that the number of new books published in Indonesia averaged between 3,000 and 4,000 titles a year, with around 3,000 copies of each title produced, a level which is inadequate to cater to the needs of Indonesia's population of 203 million people.

There are 600 publishing houses in Indonesia and 3,223 bookstores, only 5 percent of which have a modern management system.

Data from the World Bank and UNESCO Statistical Year Book reveals that the reading level of Indonesian people is still very low.

The number of literate Indonesians is approximately 84 percent of the total population, or around 184.8 million people.

"That doesn't necessarily mean that all the literate people like reading," Taryadi explains.

Sociologist Ignas Kleden once said, "It is very strange that one title of 3,000 copies should be on display for years in bookstores."

The World Bank data reveals that Indonesia spends less than US$1 per person on books a year, or, per capita, purchases one book for five people.

The emergence of private television stations like RCTI, Indosiar, SCTV, TPI, ANteve and now Metro TV has also contributed to the number of entertainment alternatives available. The transmission of TV programs reaches around 74 percent of the population, further distracting people from reading books and other printed media.

Survey Research Indonesia (SRI) reveals that Indonesians are crazy about watching TV programs. Rather than reading a book, they choose to watch sinetron (local TV drama) or telenovela Latin soap operas.

SRI's data shows that most Indonesians watch TV programs for 3.5 hours per day. So, how can the national publishing industry flourish in the face of such obstacles?

Setyadharma Ali, one of the executives of the Indonesian Publishers Association (Ikapi), said that "publishing a book is now a painful job".

Even before the crisis, the publishing business was less profitable compared to the banking, property or manufacturing sectors, he said.

At present, the condition is worsening with the skyrocketing paper prices, increasing production costs and, most of all, the people's declining spending power.

A large number of publishing houses have had to take drastic action -- to cease operations or to change their core business.

With inflation having doubled the prices of goods since 1998, the soaring paper prices and the cost of printing negatives and plates increasing by more than 500 percent, it is extremely difficult for publishers to survive.

Since l999, only 10 percent of Ikapi's 600 members have been able to continue operating. Around 40 percent distributed old stock or republished best-selling books, 20 percent temporarily closed down, while the remaining 30 percent have changed the nature of their business. During the crisis, the publication of books dropped by around 30 percent and the sale of books fell by 40 percent.

"We want to sell quality books, but we really can't afford to procure them from distributors as the prices are extraordinary," said Nurdin, the owner of a book shop in Jatinegara.

Teuku Muhammad Hasan, an executive of Maruzen bookstore, said the company had established a cooperation agreement with distributors.

"We invite them to display their books in our stores. We used to buy books from them but, since the crisis, these terms of business seem to be more affordable," he said.

If the crisis is over, his company will start buying books from the distributors again.

He said the sales of how-to books and self-improvement books like Chicken Soup for the Soul by Jack Canfield and Mark Victor Hansen, and The Celestine Prophecy by James Redfield had been good. Indonesian novels like Dewi "Dee" Lestari's Supernova or Ayu Utami's Shaman are also selling. Children's books, such as the Harry Potter series, and cooking books have been the most lucrative items.

"In this time of crisis, many visitors come here just to read a book, and we are glad we can still provide them with an educational and inspiring activity," Teuku said.

If the crisis continues, Setyadharma is worried that Ikapi members will become really desperate.

"What if we come to the point where we don't want to produce books? Let the government and the people imagine if there were no books in the market," Setyadharma said.

The problems have become endemic and no solution is in sight. Will they be echoed in the next book month?