Young professionals dominate golf membership

Young professionals dominate golf membership

By Arif Suryobuwono

JAKARTA (JP): Members at the undulating seas of grass called
golf courses aren't lining up to buy Grecian Formula.

The gray haired diehards, made up mostly of top government
officials and top-notch businessmen, remain the predominant
members of the expensive pastures, whose membership fee can be as
high as Rp 150 million (US$67,537).

But more and more younger professionals, from their late 20s
to early 40s, are grabbing at a larger share of the membership
pie and the hobnobbing that comes with it.

"In the 1970s and 1980s every time I practiced I used to meet
the same guys again and again. There are so many new faces around
at the driving ranges today," said Col. (ret) S.M. Baharson, who
fell in love with the popular pastime of the business community
in 1972 when he was 32.

Roughly 30 percent of the 600 members of Riverside golf course
in Bogor are young executives, according to Yuli, a marketing
staff member at the course. At Emerald One golf course in Tapos,
Bogor, young executives make up half the members, marketing
manager Kamilani Baniwati says.

The regreening was also observed by Ninik Hartono, chairperson
of the women's commission of the Indonesian Golf Association and
a member at Riverside, Pondok Indah and Rawamangun courses.

Trend

"I think becoming a member of golf courses has become a trend
among many young executives, most of whom zero in on the status
symbol for social climbing," Ninik explained.

The trend, according to Baharson, is triggered by the tendency
among business circles to copy membership holders' success
stories after learning that membership fees, like land prices,
tend to increase every year.

"Given the extravagant fees, I suspect that most of them
obtain membership at their companies' expense," Ninik added.

A 38 year-old director, whose company pays for his membership,
told The Jakarta Post that members of the board of directors are
the only ones privileged with company paid membership where he
works.

Certain private banks' vice presidents and general managers
are eligible, he added, which was confirmed by a 41 year-old
general manager of a private bank.

The general manager who, like the director, requested
anonymity, said his company pays for his membership because his
position requires extensive lobbying with the bank's top
customers.

"If entertaining is part of your job descriptions, you'll have
to learn how to play golf, even though you may not really like
it," he said.

He said branch managers are not entitled to company-paid
membership but if they are required to play golf with customers,
the company will reimburse them up to Rp 200,000.

The banker, who prefers jogging to golf, finds it senseless to
fork out large sums of money to be a member of a golf course.
"Why must I spend, say, Rp 100 million? I'd rather deposit the
money and get the interest," he argued.

The director, on the other hand, said that although he already
has a free membership from his company, he was so fascinated by
the sport that he bought two other memberships.

"You can now pay the fee in installments of just Rp 2 million
a month," he said. This conforms to Riverside's monthly
installments, which range from a low of US$900 for three years to
a high of $1,900 for one year.

He belongs to the Jagorawi, Riverside and Gunung Geulis
courses and believes that more and more young executives will buy
memberships themselves.

"Tight competition forces golf course owners to lower
membership fees and offer attractive payment programs. This
enables and encourages us to become members," he said.

The Modern golf course in Tangerang follows this marketing
strategy and makes paying easier with an interest-free
installment plan over 48 months. They offer night golfing and
free access to 150 golf courses in the U.S., Canada, Spain,
France and Malaysia to attract more golfers.

Peer Grouping

"Playing at just one course is boring. I based my decision on
which courses to be a member of on who I regularly play," the
manager said.

"That's why I bought memberships to golf courses where my
friends are also members," he added.

Membership solidarity is also shared by 53 year-old Baharson
and Rudy Kuswantoro, a 48 year-old contractor.

Baharson said he felt most comfortable among his old friends
on the Rawamangun golf course while Rudy said he felt at home
surrounded by friends at Modern course.

Young business executives, who are among those savoring
economic growth in Indonesia, tempt developers to build more golf
courses, despite the already fierce competition.

"The fact that golf course developers now offer installment
plans shows that supply has begun to outgrow demand," Baharson
said.

The secretary of the Rawamangun-based Jakarta Golf Club said,
"developers who venture to build golf courses without coupling
them with residential estates are reckless."

Golf courses are an effective tool to jack up the price of
land in adjacent residential estates. They, in turn, become an
effective tool to quickly cover the costs spent on building the
courses, he added.

Matoa International golf course in Ciganjur, South Jakarta,
for instance, is taking a risk. It was built without a housing
complex as a financial back-up, Baharson said.

Timber tycoon Moh. "Bob" Hasan and Minister of Transmigration
Siswono Yudohusodo, however, did not have to pay for the land,
which is owned by the Air Force, he added.

However, it is only on weekends that all the courses are
packed to capacity. Baharson, who initiated the construction of
Halim golf course in East Jakarta, the first par-72 public course
in Indonesia, said that it is common to wait for two hours to be
able to play at Halim on weekends. The same is true for Pondok
Indah course on weekends that those who want membership must buy
or lease it from one of the course's 1,300 members.

On the other days, however, those courses remain less
productive as they were once believed to be.