Indonesian Political, Business & Finance News

Ramadhan good, bad for businesses

| Source: JP

Ramadhan good, bad for businesses

Joko E.H. Anwar, Contributor, Jakarta

Emilia, 32, seemed to be in a hurry on Thursday afternoon. She
dropped by her next-door neighbor's house in an underprivileged
area in Kota, Central Jakarta, on her way to meet a business
partner.

"I have to meet this man who promised me a space to open a
cigarette kiosk," Emilia told The Jakarta Post.

A single mother, she wanted to make sure that somebody would
look after her five-year old daughter while she was away. Emilia
only gave a faint smile when asked about the father.

Asking her neighbor to look after her daughter has been part
of her daily routine for the past two years, ever since she
started work as a waitress at a well-known night spots in town.
She usually dropped her daughter off in the late afternoon and
picked her up again the next morning.

That Thursday, the second day of Ramadhan, however, was
slightly different. She would not go to her usual workplace
since, as a result of the gubernatorial decree No. 108/2001, most
entertainment spots must close their businesses during the Muslim
fasting month. Violators of the decree may lose their business
licenses.

Jakarta administration issued the decree after being pressured
by several hard-line Muslim groups, which have a history of
committing a series of violent and destructive attacks on night
spots, especially during Ramadhan.

The decree affects nightclubs, discotheques, bars, saunas,
massage parlors, arcades and health spas. Other businesses, such
as cafes, may only operate from 8.30 p.m. to 12.30 a.m. and are
required to "adjust" their services to accommodate restrictions
of the Muslim holy month. This may therefore mean no alcohol and
no live music.

Of course, not all of these businesses follow the rules and
there are some who ignore the decree entirely, running their
businesses as usual.

Still, thousands of workers employed at night spots and
entertainment centers that have followed the decree, have had to
find other ways to make money during Ramadhan.

"I know it's a bit late for me to start a new business now.
Many of my friends started theirs a long time ago," Emilia said.

She added that many of her colleagues had opened warteg (food
stalls) serving fried catfish, pecel lele.

"They have opened side businesses not only because of
Ramadhan, but for insurance also, as some hard-line groups often
attack places like our workplace," Emilia said.

While several entertainment businesses, including Emilia's
employer, keep paying their workers, the closing of the
businesses seriously hurt the employees as they make a living by
supplementing their income with tips from patrons.

Emilia, who has been working at the discotheque for almost two
years, only receives Rp 500,000 (US$54.4) a month from her
employer. However, she can earn about Rp 3-4 million from tips.

No business means no tips. For Emilia, this also means she
will not have enough money to cover monthly expenses, including
rent for a 2.5 x 4 meter room for which she pays Rp 300,000 a
month.

"I can no longer send money to my parents in Bekasi, either,"
she said, admitting that she has lost a lot of pride as a result.

Survival for those who lose their jobs during the fasting
month also takes other forms, and many employees of night spots
who rent rooms in the Kota area choose to go back to their home
villages when Ramadhan arrives.

"They say living costs are much cheaper back home and they
don't have to pay rent, since they can stay with their families,"
said Anto, 50, one of many residents in the Kota area who lease
rooms to employees of nearby night spots.

Yadi Rosadi, 23, a waiter at the same discotheque with Emilia,
has chosen to stay at home all day so as to spend as little money
as possible.

"I still have my savings at the company," Yadi said,
explaining that the company strongly urged its employees to save
a portion of their monthly salaries with the company accountant
specifically for Ramadhan.

"We have to save at least Rp 50,000 at the company. Some of us
never take home our monthly pay and withdraw it only during
Ramadhan, because we can live off tips," Yadi said.

As some people say, there is a silver lining behind every
cloud. While Ramadhan causes many night spot employees to lose
their source of income for the month, it also provides
opportunities to make money.

The traditional market at Jl. Bendungan Hilir, Central
Jakarta, is one of many spots in the capital where food stalls
sell traditional foods and drinks for breaking the fast. Most
Indonesian Muslim break their fasts with sweet beverages and
foods, such as assorted jelly served with coconut milk and sugar,
which are often sold at these strategically located stalls.

These seasonal food stalls bring in really good business.

Nining, 30, a mother of three, could not hide her joy when
asked about her seasonal snacks business at the market.

"Thank God, (the business) is doing very well," she said. "I'm
only a housewife the rest of the year, but during the fasting
month, I can make more money than my husband does."

Nining said she could make almost Rp 100,000 a day by selling
various beverages and snacks, such as kolak (banana cooked in
coconut milk and palm sugar) and candil (a beverage made from
rice flour, coconut milk and palm sugar).

"Today I have to make some more food quickly because they all
sold out," Nining said happily.

Nining's happiness was also mirrored by another seller at the
market, Rita, who sells palm dates during Ramadhan.

"With this business, I can make sure that my kids will have
new clothes for Lebaran (the day of celebration at the end of the
fasting month)," Rita said.

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