'Silver Town' sees silver lining slip away

By Gin Kurniawan

YOGYAKARTA (JP): A former seat of the ancient Mataram Kingdom, Kotagede to the southeast of downtown Yogyakarta is dubbed "Silver Town" because the majority of its residents are silversmiths.

True to its nickname, Kotagede offers a host of silverware, from jewelry of rings, delicate filigree necklaces, earrings and bracelets, to household appliances and ornaments.

Data compiled by the Yogyakarta Production Cooperative of Silverware Entrepreneurs reveals that about 4,000 families work in the sector. Each family usually employs five to eight people, and most live in the areas of Keboan, Jagalan, Prenggan, Tegalgendu and Moyan.

According to cooperative chairman Samsudimulyo, silvercrafts in the town date back to the 16th century during Mataram's heyday, when palace artisans made silver jewelry for the royal family.

Over time, people living outside the court learned the craft. After the royal court moved on, many community members developed silverware into a professional craft and produced articles to meet the market demand. In 1933, local silversmiths set up the Foundation for the Promotion of Arts in Yogyakarta, which was later popularly known as Pakaryan Yogyakarta.

The foundation launched various guidance and assistance programs designed to intensify the development of ventures of local silversmiths. Gradually, the silversmiths gained national and international recognition.

Kotagede silverware has been exhibited internationally in Japan, the United States, the Netherlands and other European countries. As the items achieved international popularity, the welfare of the silversmiths rose.

Unfortunately, like for so many Indonesians, the crisis has done much to undo the gains of the past.

"At first there was a decline in our orders. Then the price of the raw materials soared. Finally, we could no longer continue making silverware," said silversmith Jumiran from Jagalan.

Last year, a kilogram of silver cost Rp 300,000; today, the price ranges from Rp 2.8 million to Rp 3 million. The numbing price rise is an inevitable consequence of the rupiah's crash; the metal's price is pegged to the U.S. dollar, following the standard set by the London Metal Exchange.

Silversmiths must also pay a 10 percent value-added tax, as stipulated in Presidential Decree No. 37/1998 issued in April.

To make matters worse, the prices of other materials used in the silvercrafts have also soared. For example, velvet has risen from Rp 6,000 to Rp 18,000 per meter and the price of glue has increased from Rp 8,500 to Rp 40,000 a can. Even the production cost, formerly an average Rp 250 per gram, has gone up to Rp 500 to Rp 600.

Production costs can be offset by increasing prices, but the risk is high when people have new priorities. "In the present situation, people prefer to buy food to silver," said Lasmanu Sukriyanto, owner of Ira Silver's.

Silversmiths have been hit hard on all sides. Foreign tourists are traditionally the main purchasers of the items, but their numbers have plunged following the forest fires in Kalimantan over the past year and the May riots which were worst in Jakarta and Yogyakarta's sister city of Surakarta.

"In some cases, we received orders from abroad but in others foreign buyers came here to buy large quantities of silvercrafts. However, because they doubt the security situation in the country, many foreigners have canceled their plans to visit the town," said Sunarti of Narti's Silver.

In the last three months, she said exports had dropped. She attributed the downturn to the considerable increase in the price of Indonesian silver and the fact that many overseas buyers of Kotagede silver products were on holiday.

Sunarti said the soaring price of silver rendered the cost of silvercraft articles uncompetitive. "The price of our silver is much higher than that of Thailand."

She argued the Indonesian's silverware was superior because it was handmade. But for foreign buyers, where the bottom line is the major concern, the less expensive Thai products are proving a bargain, even if their craftsmanship is lower.

"Thai silvercraft articles are indeed lower in price than ours because the silver raw material is cheaper and the cost of production, mechanical in some respects, can be considerably cut down," she added.

Narti's Silver has not laid off its workers even though about 30 employees in the retail division have virtually nothing to do. "Although retail sales are practically naught and our exports have also dropped significantly, thank God we can still pay these retail people from our export earnings," Sunarti said.

But many other companies, like Tom's Silver, have been forced to lay off some of their employees.

Bima Silver now needs about five kg of silver monthly, a big drop from the previous amount of 40 kg . Ira Silver now requires only 2 kg of silver a month instead of 25 kg.

"Our average sales volume used to amount to Rp 200 million, but now it is only Rp 15 million," Lasmanu complained.

The once bustling hives of activity have been silenced in the crisis. Furnaces, engraving tools and workshop tables stand idle.

To survive, the silversmiths sell vegetables, rear chickens, work as parking attendants or even run food stalls. Thousands are still searching for a living. They have been forced to look for new jobs in professions far removed from their own gifts and skills.

Samsuhadi expressed pessimism over whether the silversmiths could succeed in their new business undertakings. He said it was due not only to the problems besetting all business sectors, but also because the silversmiths were accustomed only to their time- honored profession.

Will the fame and glory of Kotagede silver craftsmen and the label of the Silver Town become obsolete? The Kotagede people do not know the answer, just as they do not know when the crisis will finally end.