The Story of Ramayana

The Jakarta Post, Jakarta

The story of publicly listed Ramayana Lestari Sentosa is not quite the stuff that made the Hindu epic from which the giant Indonesian retail chain has taken its name, but its success story in coping with 1997-98 Asian crisis is legendary nevertheless.

These are just some of the things that Ramayana did, according to Dangerous Markets: Managing in Financial Crisis.

Managing the crisis:

* Fixed exchange rate for property leases

* Made early payments to key suppliers, thereby receiving rebates of 3 to 8 percent

* Worked with suppliers to cut costs by using fewer designs and accessories, and cutting the amount of material in each article

* Tightened control on operating expenses, with target of 16 percent over sales

Seizing opportunities:

* Maintained prices on core products and adjusted assortment to account for falling income levels

* Rebuilt stores destroyed by riots

* Expanded to new areas of the country, securing top properties at very favorable terms.