Small-time traders profit from rupiah's ups and downs

By Ahmad Junaedi

JAKARTA (JP): The adage "one man's meat is another man's poison" is apt for the current slide in value of the rupiah against the greenback.

For officials, businesspeople and common folk, the rupiah crisis -- which is ongoing -- has caused an irksome headache for most Indonesians. Many projects have been canceled and others reviewed.

On the other side of the coin, there are currency traders who have been benefiting from the "unexpected" dive in the rupiah, which has been on a rollercoaster ride since the first week of July.

For currency dealers, a drop in the rupiah can yield a windfall.

But it is not just the large-scale dealers who are profiting, petty traders -- who set up their business on the streets and sidewalks -- are doing a roaring business.

One street dealer reveling in the "happy season" is Syafri, who operates on the sidewalk in front of a bookstore at the Pasar Baru shopping center in Central Jakarta.

The 58-year-old vendor, who has been in the area since the 1960s, said the volume of transactions had jumped by 50 percent since the crisis.

"For a money dealer with limited capital, like me, the profit -- however high it is -- is just enough to buy rice and other daily needs for my family," Syafri said.

He normally earns an average income of Rp 600,000 (US$167) per month.

Since the rupiah crashed, Syafri and some of his fellow workers have gained a level of prominence since some reporters interviewed them about the crisis. He said he was once paid Rp 40,000 by a television station reporter for an interview.

Syafri is a senior figure among the dozens of currency traders, locally known as Mat Dollar, at Pasar Baru.

Like the other traders, Syafri does not need a board displaying currency rates, counting machines, money proofing tools or a secretary to run his business.

Small table

With just a small, portable wooden table to display the currencies he keeps in his pocket, this "moving" money changer sits and waits for prospective customers.

He watches the visitors passing in front of his "office" and sometimes half whispers "dollar, Pak, dollar, Sir" to passersby.

Those who have visited Pasar Baru might already be familiar with these passwords for buying and selling money.

According to Syafri, the customers of petty currency dealers are those, including foreigners, who want to sell small notes, such as US$5 or $10, which are usually rejected by the bigger money changers. Sometimes the money is already crumpled.

"Banks or money changers do not accept small money," he said. "That's why customers come to me."

And so Syafri can set his rate higher than the official rate or money changers' prices.

When money changers, for example, set $1 at Rp 3,550 (buying) and Rp 3,750 (selling), Syafri will make his price Rp 3,300 (buying) and Rp 4,000 (selling).

Syafri usually keeps the foreign currencies for several weeks before changing them at a money changer or bank.

And he does not just deal in the greenback, Syafri also handles other foreign currencies, including those from Europe, African and Latin American.

Intuition

So how does he decide prices for "rare" currencies?

"It's based on my long experience and also depends on the supply and demand of the market," Syafri said.

He also buys and sells old currencies, foreign stamps, foreign telephone cards and collectible foreign credit cards.

Syafri moved to Jakarta in 1957 when the PRRI rebellion affected his hometown of Padang, West Sumatra.

He started to sell handicrafts in the Pasar Baru market in 1958. A few years later, he changed his profession and became a glass vendor in Tanjung Priok, North Jakarta.

Syafri returned to Pasar Baru in the 1960s. Since then he decided to stay put and continued living in his low-cost apartment in Klender, East Jakarta.

He married Deswati, who was from the same village, in 1968 and the couple have five children, two of whom are still in college and senior high school respectively. His other children have already married and started their own lives.

Some of his friends call him Babe (father) because of his seniority.

Does he fear being evicted from the market?

"As long as we cooperate with the market authority and other people, there is no need to be afraid," he said. "I am known here."

Sometimes, Syafri dreams of having a more comfortable place to set up his currency business.

But changing premises was out of the question when he realized that he would never make enough money to realize his dreams.

"I'll run my business with this small table as long as I am strong enough to do it," Syafri said.