Security business prospering, on the rise

Security business prospering, on the rise

Hartono Iggi Putro, Contributor, Jakarta

Since the terror attacks that rocked Bali, this country has witnessed serious threats to its security. Terrorist acts like bomb blasts and bomb hoaxes continue to make headlines, seemingly at regular intervals.

Obviously, this situation keeps those managing government and private office compounds, hotels, shopping centers and other public facilities on alert for any uncalled-for eventuality.

In an attempt to deter terrorist acts, the government has issued three recommendations. First, all government and private institutions and those managing public facilities are required to introduce standard security measures on their premises to prevent terrorist acts, particularly bomb blasts.

Second, public participation must be intensified. Third, early detection efforts must be intensified. These recommendations were issued only a day after a bomb exploded at JW Marriott Hotel in Jakarta in early August 2003.

Shortly after the issuance of these recommendations, those managing government and private office compounds and other public facilities intensified their efforts to safeguard such places.

Inspections have been introduced in practically every high- rise building, government or privately owned, hotel and shopping center. Every visitor, either on foot or in a car, will be subject to an inspection by a metal detector.

In several buildings the security procedures are very tight. Take the Bursa Efek Jakarta (the Jakarta Stock Exchange) building, for example, which suffered a terror bombing in 2000. As if to ensure that there will be no recurrence of a bomb explosion here, the management of the building where stocks are sold allows only automobiles with a special sticker on them to enter the building. Otherwise, the cars must drop their passengers on a side street.

Those who manage office buildings, shopping centers and other public facilities seem to have been plagued by a strong paranoia. Security becomes something very exclusive on their minds.

As security becomes a hot topic in our society, companies selling security products and security management services have enjoyed an upturn in business. Vast opportunities are there to be exploited. No wonder, new companies have sprung up.

Advertisements offering security tools are easily found in various kinds of the mass media.

The demand for security products and management services has risen very quickly. The sales of metal detectors, security alarms, CCTV (close circuit television), VTR (video tape recorder), bullet-proof vests, detecting doors and other security devices has increased sharply.

For those managing office buildings, prices come second as what matters most to them is how they can prevent acts that can harm the tenants.

In terms of price, security products and services are quite costly. A club-shaped metal detector ranges between Rp 3 million (about US$315) and Rp 4 million in price. This type sells very well.

A doorway metal detector, the type usually found in airports, can cost Rp 45 million each, plus installation costs. Following frequent bomb hoaxes, these detectors have become popular among companies whose offices are located in high-rise buildings.

CCTVs are also great demand. Depending on the make, it varies in price, starting from Rp 30 million per unit. Small-size CCTVS, which will not attract attention when installed, sell best of all.

Another safety product with higher demand is a bullet-proof vest, especially the best quality types from the United States and Korea.

The vests are out of stock in several companies. While it is quite costly - Rp 30 million per piece, these silk-lined bullet- proof vests, which weigh only about 1.5 kgs, sell very well.

Bullet-proof vests of the third or fourth quality, which are lined with ceramic panels, cost Rp 6 million to Rp 10 million apiece.

Although security products are often advertised, they are sold under certain procedures. When you buy something of this nature, the vendor will need your identity, your address and your telephone number. To ensure that these products are used properly, the vendor will deliver the items, such as gas masks and bullet-proof vests, to the address of a buyer.

On the other hand, although they advertise their products in various kinds of the mass media, a number of companies selling security products keep their location secret for security reasons. If you are interested in one of these products, the vendor will give you only his telephone number. "If you are really interested to buy, our man will come to your place and demonstrate the instrument," said a metal detector vendor.

A business boom is enjoyed not only by companies selling security products, but also by those providing security services. Companies and wealthy people, such as government officials, businessmen, politicians and celebrities, use security services to protect themselves.

Security services available comprise security consulting services, security devices, security training and education, cash-in-transit escorts, guard services and rescue services.

There is, indeed, a vast market potential for security equipment and services.

Iqbal Thaibsyah, senior sales manager of PT Securicor Indonesia, a company providing security products and services, said there is still a vast market potential for the business.

On the alarm system market, for example, the potential demand stands for 18,000 connections, but at present only between 3 percent and 5 percent of that potential has been fulfilled.

"This business has quite bright prospects," Iqbal said.