Removal companies enjoy robust trade

By Sadie Mah

JAKARTA (JP): With most expatriates and well-heeled locals having left the city after the riots of last May, you would expect the moving business in Indonesia to be in a slump.

It's on the move, however, and most companies contacted by The Jakarta Post said that they were flat out with business. In fact, SRT International Movers reported a 500 percent hike.

Besides expatriates and locals moving out of Indonesia, a sizable proportion of the growth this time has come from the remaining expatriates and locals having their belongings stored in warehouses while they await the outcome of the general elections.

Moving companies are called in to pack and store away furniture, paintings and electrical goods, to be either shipped abroad in each instance the situation heats up or unpacked once the owners are convinced that the worst is over.

"They are packing up now as a precaution, and will give word on whether to send their things out later," said a senior technical advisor for International Movers and Storage (IMS), who would only identify herself as M.K. "If nothing happens after the elections, they may not leave."

Most clients of these movers are expatriates. While some are moving out of the country after having lost their jobs here, many are moving to hotels or going abroad temporarily while their belongings are being stored in warehouses.

Other expatriates are sending their wives and children back to their countries while they themselves move from a house to a small apartment, a trend prevalent among the Japanese.

"From January to March this year, we had around 80 Japanese clients who moved their families out of Indonesia, while they themselves moved into apartment units," said Ananda Purwoyuwono, removal manager for SRT International Movers.

Meanwhile, some expatriates from Australia, Europe and Malaysia are shipping their Indonesian wooden furniture out of the country in advance.

"Indonesian furniture in those countries can cost up to seven times what they cost here. Many of them have accumulated a collection during their stay," explained Eddie Arno, owner of Arno Removals.

But foreigners are not the only ones moving out of the country. Companies are reporting an increase in Indonesian clients as well. Agus Zulkifli, an employee at Ritra Movers, estimated that as many as 30 percent of their clients are locals. He added that most are ethnic-Chinese. "The Chinese are scared, and they have money," said Ananda.

Since the riots of May last year, some rich Chinese- Indonesians have emigrated to countries such as Australia, U.S., Canada and Malaysia. Others choose, instead, to have their belongings stored at warehouses in countries such as Singapore, Hong Kong and Australia while they wait for the outcome of the elections.

"We have been getting 10 such clients a month for the past few months," said Sri Fatimawati, chief of the sea freight department of Unipara Movers and Warehouse, said earlier this month. Sources revealed that some Indonesians began putting their belongings in storage even before May last year.

Sri added that many families living in Chinatown in Kota are moving to either Bali or Lampung in search of safety. "Since the beginning of April, we have been handling 20 families a week who are moving out of the Kota area," said Sri. "They usually rent a house for one to two months in Bali or Lampung, returning to Jakarta to retrieve their belongings only when it's safe."

But safety is not the only concern for those who are leaving Indonesia.

"Our clients are also waiting to see if the economy will pick up after the election," said Eddie. "If the election results look favorable to the economy, they will stay on in Jakarta." He said that many who have lost their jobs to the economic crisis are going abroad to look for new ones.

Arno's clients also include business people who are developing new businesses abroad, while maintaining the ones they have here. "They do not want to close their businesses here because they see potential in Indonesia," he said.

Others have simply closed their shops indefinitely. Martha, who closed down her salon in Hayam Wuruk Plaza, said it's too risky to keep operating throughout the election period.

"Like my friends, I'll be leaving for Singapore before the parties start campaigning, and will then see what the situation is like after the elections," she said.

Some locals, who have no plans to leave the country, simply have their valuable possessions stored in warehouses.

"Requests by our local clients for storage varies between a few items to a whole house," said Peter Charles, a director at Trans Movers. He said his clients include collectors of paintings and artifacts.

Although most companies are up to their neck with international and inter-city jobs, there is also a high demand for domestic moving. Since May last year, expatriates and locals are moving from houses to apartments within Jakarta, believing that apartments are more secure. They are also moving to, what they perceive to be, safer areas within Jakarta.

While the moving industry is enjoying a boom, some are not optimistic. "This is obviously a short-term phenomenon," said Eddie. "Once most of the expatriates have left, the business will be slow again. Indonesians have cheap labor and their relatives to rely on to help them move, so there has never been a real need for professional movers," he said.

Competition may even be pushing some local companies to charge very low prices. For example, Unipara charges Rp 720,000 for 30 days' storage of an average household at their warehouse, which includes the receiving delivery and unloading. For similar service, a foreign company might charge millions of rupiah.

Besides the political and economical climate in Indonesia, other factors may have contributed to the industry's success. The school holidays which will begin in May, means that there are more people traveling out of the country at this time of the year. Moreover, housing leases for expatriates usually expire around this time, making it the ideal occasion to leave the country.

"In every situation, there are always winners and losers," said a long-time expatriate resident of Jakarta. "While the losers are obvious, the more interesting stories lie in the winners."