Sun, 15 Feb 1998

What expatriates say about the crisis

JAKARTA (JP): Not all expatriates enjoy the envied good fortune of a salary denominated in all-powerful American dollars.

In fact, those who do take home the greenbacks may well be fretting over their futures and the very real possibility of employers shedding this heavy price to pay.

To keep their jobs, expatriates who until recently had savored the pleasure of receiving the mighty dollars may have to compromise and humbly receive the rupiah.

The Jakarta Post interviewed several expatriates about ramifications of the crisis on their lives and livelihoods.

Arthur Parkes, an American-born German project engineer for a German-based trading company: The crisis has forced my company to dismiss dozens of its workers. Only three expatriate directors are left to supervise the company.

Apparently, I am not needed by the company here anymore, and I was permitted to return to the headquarters in Germany. I am staying here now while waiting for my next placement.

Practicing business here is getting tougher ... Our company distributes chemical machinery. Most of the spare parts and the machines are imported, and are paid for in U.S. dollars.

The situation got worse last December, and we lost about 50 percent of our clients.

I am going back to Germany this week. Hopefully, things will be better for me there, and I can get together with my family again.

Elizabeth Mukidjam, an Indonesian-born American independent education consultant: Of course, the currency crisis has affected me because I get paid in rupiah ...

What bugs me the most is the sharp hike (in price) of imported stuff. Imagine, the price of prime-cut meat has soared from Rp 25,000 per kilogram to Rp 75,000 per kilogram.

Expatriates have a higher living standard, but we are hit by the fact that imported stuffs have hiked up by 300 percent.

My husband, who is also American, is paid in rupiah. So both of us have to be more spartan with our spending. We rarely dine out ... Hopefully the situation will get better soon.

Melanie V. Kurt, an American teacher of English: The rupiah crisis has not affected me much because I am paid in dollars ... I feel a bit lucky.

But it does not mean that I am not being prudent ... prices here have soared, especially imported stuff such as cheese and milk.

My job is quite secure. But ... if I get another contract, I won't be too demanding by asking to be paid in dollars.

This year, I've already been booked to teach at three government institutions and two corporations.

But who knows? ... they may cancel the plan. So I will be reasonable with my offer. The most important thing for me is to teach them the best way possible to learn English.

Andreas Trauttmansdorff, an Austrian, general manager of the Sheraton Media Hotel: There are two ways of looking at the economic crisis. One is to be depressed and suffer, the other is to look at it as a challenge.

There is always an opportunity ... In a time like this, you need motivated workers who really want to turn this (situation) around.

You need the best possible people available, and it does not matter whether they are Indonesians or expatriates as long as they can get you out of the crisis.

People must be optimistic and find innovative ways to get through the crisis, instead of complaining all the time.

I am a self-motivated person; if I was not, I might as well pack my suitcase and move on like everybody else.

I am still paid in dollars, but it is probably going to change to a mix of dollars and rupiah. I would have no objection should that happen.

Jeanne (pseudonym), an Australian executive at a public relations and advertising company: The crisis has drastically cut the revenues of public relations and advertising companies.

We wonder if things are going to improve after the election.

My company employs fewer than five expats. One of our foreign employees is planning to leave next month by choice.

I am now being paid half in dollars and half in the rupiah.

I still have to repay my university loan at home, which is in Australian dollars. People who have debts in their countries are facing similar problems.

I have cut down on my spending, like for restaurants and cafes. I also used to travel a lot to Bali and Yogyakarta, but have reduced that now since hotels in Bali charge in dollars.

I think things are going to get better by the end of this year. I'm worried a bit about unrest and political tension, but I will stay here until people start being unfriendly to foreigners.

Angus Freiser, a British technical advisor for advertising company Indo-Ad: It's a good life here, but it has not been easy recently. Clients have cut their budgets for advertising.

We are lucky that we are affiliated with the (New York-based) Ogilvy & Mather Worldwide, and we have a lot of loyal and strong clients.

I started in Ogilvy & Mather in London 10 years ago and moved here with my wife and three sons in April 1996. When I arrived, Indonesia was going through an amazing time, advertising was growing by 20 percent to 25 percent yearly.

My family and I still enjoy living here, but we have been a bit concerned over political tensions. We've heard an awful lot of rumors, but many of these are unaccountable. We keep in touch with the embassy and so far we haven't got any plan to move.

I am paid in the rupiah but get compensation in dollars sometimes. We feel the tinge of the skyrocketing prices of food here. But I may feel more secure with my job than those who are paid in dollars.

I have also had to cancel my plan to attend a wedding in Australia ... But we went to Bali instead, and it was nice.

Parveen Gandhi, an Indian corporate financial advisor at Bank Bira:..the crisis has made my job become more challenging and innovative. We're learning new things, and it is more satisfying.

I've lived in Indonesia with my wife and three children for seven years, and have been working for Bank Bira for four years.

Last month (in a meeting with the board of directors), all the expatriates agreed to change our salary to the rupiah because the rupiah had sharply depreciated ... the bank is run by professionals, and we feel that it is our own bank.

Once the situation gets better, we will be paid in dollars again. But it is not a great concern of ours, everybody has to sacrifice.

I am not too worried about political tensions and social unrest. Every time someone tells me something I tell them: "Please, don't create rumors."

Angus MacLachlan, a British director of marketing of ITT Sheraton Corporation in Indonesia: I have been here for one and a half years. My wife lives in London and has her own business.

I applied for a job overseas, particularly somewhere in Asia. Eighteen months ago, development plans were very big in Indonesia.

It is a fascinating place to work, very pleasant and people are hospitable.

I am paid in dollars and I will probably return home if I were to be paid in the rupiah, because I have mortgages and other things to cover at home.

I will not be too upset if that happens because I've got other options. I've got business at home. (byg/das/edt)