Security efforts -- investment or extra expense?

Security efforts -- investment or extra expense?

Burhanuddin Abe, Contributor, Jakarta

People have a different attitude towards security since the
series of riots and bomb blasts that have rocked the country in
recent years.

Wealthy Jakarta residents are now more concerned about their
own security when they are in a public places.

Many now expect to be inspected by guards when entering a
hotel or nightclub. It was not so before the bold headlines of
the bomb attack in front of the Australian Embassy in Jakarta or
in JW Marriott Hotel.

Most Jakartans used to believe that security matters were the
sole business of the police. They often did not want to
participate in self defense exercises and ignored civil defense
teams and secu rity guards.

However, these days, security has become an integral part of
the lives of both individuals and companies.

Former Jakarta police chief Insp. Gen. Makbul Padmanagara
believes to best protect their business, every company should
have their own security consultant. He does not think security
products are too costly.

"In this modern age, you can easily check the prices. What
needs to be understood is that security efforts are not a cost
but an investment," he said.

Security firms with their mix of consultants, security
personnel, training staff and systems are now well-established in
the capital and many are often specialized for different kinds of
business.

PT Environmental Indokarya, also called Arla Service Co.
concentrates on supplying security staff to more than 10
embassies in Jakarta, in addition to providing guards to other
institutions like banks and cultural institutions.

Since 1999, this company, based in Gedung Lina, Kuningan, has
trained and employed 900 security guards.

Shield Indonesia, meanwhile, specializes in oil companies.
In peak production periods they provide more than 5,000 security
guards to these companies.

In the guards business there are four big players; PT Group 4
Falk, (also known as Securicor), Security 911, PT Shield
Indonesia and PT Gardatama Nusantara.

"Some of these companies have shown a downturn in their
business but the cause is mismanagement, rather than a small
market potential," an industry observer said.

Meanwhile, small security companies that provide more
customized services to smaller companies are no less aggressive
in offering their services. CV Laras Indo Makmur, for example,
claims to provide security services using a sophisticated
security system technology.

This company provides all kinds of security services for
residences, hotels, villas, laboratories, offices, factories,
swallows' nests and so forth.

Using the latest technology, this company guards clients'
asset without deploying many stand-by guards. Monitoring is done
through the internet and wireless devices. Cameras and alarm
systems are connected to police stations so police are on call
when a crime is committed.

There are an increasing number of companies selling these
kinds of security products and there were a large array of
devices on show in an exhibition held at the Jakarta Convention
Center recently.

PT Anugrah Teknik Abadi, is a company that sells level-2
bulletproof vests, and X-ray glasses that allow the wearer to see
the contents of a bag or find concealed weapons. It also sells
various kinds of cell-phone bugging devices (GSM 800/900 Mhz or
CDMA) and mini-telephone bugging devices to guard against
industrial espionage.

The business is booming, especially for monitoring devices
like CCTVs (closed circuit television). Jesselindo Electronics
Security System last year posted Rp 1 billion in sales for a
Malaysian CCTV system.

It hopes to increase its turnover this year with its cutting
edge IT fastdoom CCTV sets, with quick surveillance and cameras
that can turn up to 300-degrees.

Meanwhile, PT Mega Matrix System says things are good for its
DVR (disc video recording) CCTV set that can be connected to the
internet, currently selling well at US$5,800 a unit. "Last year
we sold 60 units. This year we have a set our target at 100," the
company's sales manager said.

PT Indolok Bakti Utama, with its international certification,
and many divisions -- Chubbsafes, Fire Products, Electronic
Security Systems, Fire Systems , Locking Products, Integrator and
Contracting and Banking Automations -- is another important
security business.

PT Intisar Primula, which specializes in an automated data
collection, has also seen a continued increase in the demand for
its security-related products such as its access control
equipment and security guard tour and monitoring systems.

"Taking a security approach has become a necessity in today's
business world," marketing manager Minik Rinayanti said.

The company began to design and manufacture some of the
devices it used to import following the financial crisis that hit
Indonesia in late 1997. "This has made our products more (cost)
competitive not only at home but also overseas," she said.

The demand shown by Indolok's large clients, such as
embassies, multinational corporations, state-owned enterprises,
banks proved this. "We do not just sell products but we also
provide integrated services, from product design to after-sales
services," Bakti Utama branch marketing manager Lea K. Indra
said.

With the establishment of new hotels and apartments, and the
opening of new banks, hospitals, ATMs, all businesses that need
tailored security products, the business is likely to continue to
thrive.

While systems are not cheap they are generally tailored and
priced for he size of your business.

Be thankful you are not the organizers of last year's Athens
Olympics who spent about US$1.2 billion all up on security.