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

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.