Traders optimistic of economic recovery

Damar Harsanto, The Jakarta Post, Jakarta

Electronics and computer traders in the newly rebuilt Glodok Plaza in Kota, Central Jakarta, are showing confidence in the country's economic recovery by starting to open their businesses even though many are still haunted by the trauma of the 1998 May riots.

"My shop was completely burned to the ground during the May incident a couple of years ago. But, I think the country's political situation is much improved now," said Andy, who runs an electrical music instrument shop.

Andy expected that his business would flourish in the course of the next two to three years.

However, Andy admitted that he was still worried about a similar incident to the 1998 one erupting.

"But, I can't continue waiting until the situation totally recovers," Andy said.

The nine-story Glodok Plaza building was burnt down during the anti-Chinese May riots in 1998, which led to the fall of authoritarian President Soeharto after more than 32 years in power. Andy is one of many traders who lost everything as they had failed to insure their goods.

Renovation of the building, located in the Chinatown, started in 2000 and was completed last October. The reconstruction of the building cost Rp 150 billion, of which about Rp 120 billion came from compensation for the losses that was paid by the insurer.

Meanwhile, unlike Andy, Jonathan, the owner of a flat-screen TV shop revealed that he was not worried about possible riots as he was confident about the relatively stable domestic political situation.

"Let the government handle the security job, while I will do my job as a businessman by running my business to the best of my ability," Jonathan said. Jonathan is a new tenant in Glodok Plaza.

Jonathan seemed to be well-prepared with insurance.

"We have nothing to worry about as all of our merchandise is covered by insurance," said Jonathan.

Jonathan was optimistic that his business would flourish thanks to the strong image of Glodok as an electronics and computer center.

According to PT TCP Internusa, the building operator, about 80 percent of the total 25,129 square meters of lettable space had been leased by traders and tenants thus far.

However, not all of them have started their operations yet, it said.

TCP Internusa is a subsidiary of publicly listed property and construction firm PT Surya Semesta Internusa.

"Once Glodok Plaza becomes more widely known to the public, the traders will be quickly encouraged to start up new businesses," said Johannes Suriadjaja, the president director of SSI.

To promote the center via the Internet, his company has set up a joint venture, PT E-Glodokplaza Dotkom, in collaboration with the IT provider, Group Sigma.

"Hopefully, we can also provide service for transactions via the Internet," said Hendrick Nangoi, director of the information technology firm. The company profile can be accessed at e- glodokplaza.com.

Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti is slated to officiate at the grand opening of Glodok Plaza on Wednesday.

Besides selling electronic equipment and computers, Glodok Plaza will also house provide restaurants, food courts, galleries, conference rooms, exhibition rooms and entertainment spots.