WTC tragedy affects jewelry business in Bali

WTC tragedy affects jewelry business in Bali

Rita A. Widiadana and I Wayan Juniartha, The Jakarta Post, Denpasar

There has never been a slower period for Bali's jewelry
industry than today, following the World Trade Center tragedy
last month and the U.S -led strikes against Afghanistan.

Like it or not, the tragedy, which has paralyzed the global
travel industry, has had a tremendous impact on tourism in Bali.

Runi Palar, the owner of Runa Silver and Gold Collections,
explained that this is not a good period for the jewelry business
in Bali.

"Most jewelers here still rely on retail business, meaning
that we still depend on domestic and foreign tourists as our
primary market," noted Runi, who has been running the business
for 25 years.

Although exports of her jewelry collections to Japan have not
been affected by the slump in the tourism industry, her outlets
in Bali and other cities in the country have started to feel the
pinch.

"Local sales have started to decline," Runi, who has just
arrived from a business trip to Japan, said in her gallery in
Ubud, a village famous for its art, around 20 kilometers south of
Denpasar.

The United States has warned its citizens not to visit
Indonesia due to mounting anti-America protests in the country.
Several countries in Europe and Japan have also issued similar
warnings, fearing that the backlash against the U.S. would also
affect their citizens.

"We also faced a similar situation during the Gulf War in l991
but we survived. I hope the situation improves next year," Runi
said.

Suratni, the owner and designer of Suardhana Gold and Silver
Gallery in Celuk, Gianyar, said, "I have no idea what will happen
to our business because of this situation."

Suratni acknowledged that her jewelry exports to the United
States and Japan had fallen dramatically in the last few months.

"We used to export mostly silver jewelry in the form of
necklaces, bracelets, rings and other items to the United States,
Europe and Japan. But now, our exports have dropped to almost 75
percent," Suratni explained.

Most jewelers in Bali, particularly silversmiths, target
foreign markets. Some jewelers have already established a strong
overseas marketing network.

Suratni said her company, which she established in 1979,
exports about 70 percent of its jewelry products and sells the
other 30 percent in the domestic market.

Local people prefer gold jewelry, while silver items are much
more popular with international buyers.

"The Balinese people like gold jewelry which are collectible
and financially liquid," Suratni smiled. All of that jewelry will
be kept as family heritage.

For most Balinese, women in particular, wearing and possessing
gold and gem-studded jewelry expresses personal and family pride.
Jewelry is essential for their daily activities, especially
during religious and traditional ceremonies. Both young and adult
women are adorned with gold jewelry and intricate woven textiles
from head to toe. Instruments used in ceremonies are made from
silver and gold.

In Bali, she said, silver and gold jewelry were traditionally
crafted by a clan of goldsmiths and silversmiths, called the
Pande Bratan. They used to create weapons for the royal families
like kris (daggers) adorned with gold and beautiful gemstones,
and a myriad of ceremonial instruments.

As time passed, descendants who inherited their craftsmanship
continued the trade and expanded into making jewelry, both for
local and foreign customers.

"The businesses of silversmiths and goldsmiths here in Celuk
have been operating since their great grandfathers," added
Suratni.

Located in Batu Bulan, Gianyar Regency, Celuk has long been
renowned as being Bali's major gold and silver product area.
Dozens of companies have factories and outlets here offering
primitive, classical and contemporary gold and silver jewelry.

One of the big names is Suarti Collections, owned by the
energetic and innovative jeweler Desak Nyoman Suarti, whose
collections are available in many luxury boutiques and jewelry
shops.

Suarti, who exported around 12 tons of silver jewelry and
silverware to the United States, Britain and Japan last year,
said that the ongoing economic crisis and the U.S. strikes on
Afghanistan have not yet affected her business.

"The market for my jewelry in overseas countries is wealthy
clients and we already have strong networks there," Suarti said.

In the United States alone, she said, around 70 percent of
Suarti Collection products were sold through TV home shopping
networks, while the remaining 30 percent was sold through some
1,000 jewelry shops.

She said silver jewelry had became popular among wealthy
foreigners.

"Caucasian and Japanese clients prefer silver jewelry and the
market has been very lucrative since l987," Suratni said.

Budiarta Setia Utama, operations manager at Mario Silver in
Kuta area, said that, despite the crisis, the jewelry business in
Bali still had a prosperous future, provided that local players
understood the market and offered high-quality products.

More importantly, the local jewelers should be able to meet
the overseas buyers' tastes, which are different from one country
to another.

American customers prefer intricate jewelry designs, while
European clients prefer simple and chic designs combining Eastern
and Western elements.

Runi said that design plays very important roles.

"Foreign buyers mainly like ethnic designs, but I usually
modify it and blend it with contemporary touches."