Security market boom a precursor to standardization

Rudijanto, Contributor, Jakarta

For major companies, no matter whether they are involved in hospitality, manufacturing or mining, the security of their assets and employees should be their first priority.

With the continued uncertainty in the country's security situation, relying on their own security staff is often not enough.

This might be why many companies have turned to professional security management companies to manage their security affairs. The high demand for the service has, in turn, resulted in the mushrooming of private security companies.

The rapid growth in the number of private security companies in Indonesia, according to Technical Advisor Martin Hughes of PT ROH-Control Risk Group (CRG), is triggered more by the increasing need for heightened, professional protection rather than by the poor image of the national police force.

Although harsh criticisms have been leveled against the National Police over alleged, widespread internal corruption, Hughes believes that the existing police force is far from sufficient in number to provide security for all companies and individuals.

"That is why big companies usually seek protection from ... private security companies," he said.

President Director Nick Duder of security consultancy Hill & Associates (Hill) said it would be unfair for the police to shoulder all responsibility for security in the country.

The protection of offices and commercial premises in any country has not necessarily been relegated to the police. This underlines the need for companies to have their own effective security personnel, he said.

More than 800 private security companies operate throughout Indonesia, of which around 200 are competing tooth and nail in offering security in the Greater Jakarta area -- Jakarta, Bogor, Tangerang and Bekasi.

Aside from private security providers such as PT Securicor Indonesia (Securicor), PT Secom Indopratama (Secom), PT Teknodev Inti Utama (Teknodev), 911 Bravo and Sentinel Garda Semesta (Sentinel), there are also security consultants such as Hill and CRG.

Unlike private security companies, security consultancies focus on providing analytical and strategic assessments. For instance, CRG specializes in providing political and security risk analysis, confidential investigations, crisis management and response and information security.

On the other hand, private security companies provide either security personnel or security equipment such as closed circuit televisions (CCTVs). Some companies even provide both services, and each security company has its own specialized services.

For instance, Secom is known for high-tech security equipment such as CCTVs, alarms, detection systems and access control, all of which are manufactured by its parent company, Japan-based Secom Co Ltd.

"We don't want to take the risk of using equipment manufactured by other companies," Secom President Director S. Rahardja said.

The company also has well-trained security guards to complement the electronic systems, and the company calls this combined security system of human guards and electronic security the Man Machine System.

Sentinel, another private security provider, relies more on its well-trained security guards who are deployed to residential and commercial areas such as factories, warehouses, mines, offices and hotels.

"We operate in Jakarta, Surabaya, Bandung and Bangka. We have about 600 security guards, all of whom have undergone police training. We also provide our Close Personal Protection service, namely bodyguards," Sentinel President Director Ninik Aviariananto said.

Established in 1994 in Indonesia, Securicor is part of Securicor Asia, which is wholly owned by Securicor Plc, one of the world's largest United Kingdom-based security companies.

Securicor specializes in cash transportation, cash management and processing and ATM management at the highest international operating standards.

With over 2000 employees in Indonesia, Securicor operates in Jakarta, Surabaya, Medan, Bandung, Bali, Batam, Semarang, Papua, Balikpapan, Banjarmasin, Makassar and Manado.

The mushrooming of private security companies in the country has, however, raised questions as to standards and qualities.

"There is a need to standardize the services and qualities of personnel of these companies. We do need a government regulation that regulates, for instance, professional criteria for security guard applicants, as well as basic training and equipment training," Secom's Rahardja said.

Private security companies and security consultancies have a huge market to share among themselves, as Indonesia enters a new phase in its transition to democracy.

The approaching elections and the ever-present global threat of terrorism will certainly provide a strong impetus for the development of the country's security market. However, as many security consultancies and providers admit, strengthening security forces alone is not adequate.

Indeed, the key to better security for businesses and assets is for companies to establish and nurture a good relationship with local residents in the area of their operation. Once the people accept the companies, their executives may gain true peace of mind.