Indonesian Political, Business & Finance News

Small businesses not croaking at all

Small businesses not croaking at all

By Martin Moentadhim S.M.

JAKARTA (Antara): People's trading practices are growing rapidly, and nothing can stop them. A booming export business in frogs harvested from their natural habitats provides good proof.

You may wonder how this is possible currently when a devastating economic crisis is butchering Indonesia as well as many other parts of the world.

The crisis, it seems, is a temptation for the common people. Small and medium businesses are being forced to find ways to survive the economic disaster.

Listen to this story told by a successful frog hunter.

Let's just call him Oscar Karso, 49, because the man refused to give his name when being interviewed. "You are a journalist, eh? Don't ask my name," he said.

The unplanned "interview" took place early one morning on board of a running public transportation minivan in East Jakarta. It was provoked by the sound of a frog coming from a basket in front of him.

The frog startled a woman sitting near the basket.

Then the passengers started asking questions.

"How many frogs are inside?" asked the startled woman as the minivan connected with a large pothole in front of the Cakung police station. Apparently the driver could not see well because it was still 2:34 a.m.

"A basket load of frogs weighs 24 kilograms. But at the moment, this one is only about 14 kilograms," he replied while tapping his basket that was emitting a fishy smell of frogs.

"Each kilogram of skinned frogs costs between Rp 4,000 and Rp 6,000," the frog catcher added.

If the average cost of one kilogram of frogs is Rp 5,000, it means that the man earns from Rp 70,000 to Rp 120,000 a day.

"Wow, you earn a lot more than I do," said a man in a private company uniform sitting next to the frog seller. The company employee said that he got a mere Rp 16,000 a day if he worked overtime.

The frog seller was overwhelmed by questions bombarding him from the minivan's 12 passengers, three of whom were women.

"Where do you sell the frogs, pak?" asked the woman who first heard a frog croak from inside the basket.

"The buyer exports them via Surabaya harbor," said the seller. He had no idea to where the amphibians are exported.

Subsequently, some passengers from Java and Madura exchanged their experience about catching frogs to sell.

"My neighbors in Purworejo (Central Java) also catch frogs to sell," one said.

"I know. I worked there once," replied Oscar. He said he had a group of 20 frog catchers and his job was mainly coordinating them and weighing the catches.

Oscar starts working at about 8 p.m. His equipment consists of a kerosene lantern and a small net with a diameter of a little over 10 centimeters.

His working area is vacant fields around the Pulo Gadung industrial estate, East Jakarta, while his men go as far as Bakasi and Karawang, West Java. They will meet at about 7 a.m. to have their catches weighed and bought.

As the person in charge of weighing the catches, Oscar will be at the meeting place first.

When the minivan reached Pondok Ungu, North Jakarta, Oscar got off, together with a passenger who was seated next to the driver, stirring the other passengers' curiosity about the frog business, such as how profitable it is.

But it is widely believed that a small-scale business such as frog catching is likely to wither in the crisis.

But is it true that small businesses are more resilient than conglomerates?

Economist Arief Ramelan Karseno said, "The death of Indonesia's economy in particular, and Asia in general, has drastically changed the trading patterns in the Asia-Pacific region."

According to Arief, trade and industry no longer use financial institutions extensively but, instead, use "simple" financial systems. In other words, trade and industry are becoming lesser monetized sectors.

"If this trend continues," he said, "Indonesia will become a major trading country in the world, provided the government does not make mistakes in applying foreign trade regulations."

"The amount of people dealing in trade is growing fast and nothing can stop it. The government needs to learn from the small business."

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