City's new SME center a business graveyard

The Jakarta Post ,  Jakarta, August 20, 2008

SHOW-AND-SEE: A visitors looks at crafts displayed at the Jakarta UKM Center in Central Jakarta a few months after the mall opened in August 2007. (JP/Arief Suhardiman)

The five-story building of the Jakarta UKM Center or UKM (SME) Mall, is quiet as a graveyard.

There were no trading activities to be seen in the market, a year after the city administration officially opened it last August.

The mall, located near the bustling Tanah Abang textile market area, Central Jakarta, was built to accommodate small and medium enterprises (SMEs) from Greater Jakarta.

During the Post's visit to the mall on a regular weekday last week, only a few stalls were open.

"The mall is really quiet. There are almost no visitors. I cannot even sell one item in a month. I would be so lucky if I cam sell one this month," Endang Sugino, who has a garment stall in the mall, told The Jakarta Post recently.

"The location is not strategic. It is actually in the heart of a business area, but the building is at a remote spot. Many people don't know where it is," she said, adding that people only come to the mall if there was a fair.

The UKM Mall is located behind a tax office, about 100 meters from the busy road of Jl. KH Mas Mansyur.

There is a signboard to direct motorists to it, on the side of the main road, but it is not eye-catching.

Near the mall, an apartment complex is under construction and this building site makes the market dusty, as there are many trucks carrying materials in and out the area.

Although the administration does not charge any rent for the stalls in the mall, vendors claimed that they suffered financial losses from opening their businesses there.

"I have no income, but I should pay Rp 3,000 (30 cents US$) daily market expenses and my employee's monthly salary," said Endang.

"We hope the city administration can do something to promote the mall to help us sell our products," she said.

Another vendor, Ade Kresna Suwandi, agreed. He said that he and another five stall owners even had resorted to collectively hiring one employee to look after their stalls.

"That's the best solution to minimize our expenses because it is too costly for us to pay a monthly salary for an employee to keep our stores," said Ade Kresna, who made wooden batik handicrafts, interior accessories and souvenirs.

"Many vendors are reluctant to open their stores here because the mall is too quiet. In the last three months, I have not had any money from the stall. At the moment, I just try to hold on with zero income.

"I put high hopes on the mall, but it doesn't run well. Luckily, I have a shop in Ciputat (in Banten). I can also earn money and get many new customers by participating in exhibitions," he said.

He criticized the administration as being inactive in promoting the mall.

"The idea of providing free spaces for us is really great, but it seems like the administration was not serious about developing the mall," said Ade Kresna.

"It should have ongoing programs to promote the place. It should also build more accessible ways in for visitors," he said.

The head of the small and medium enterprises agency, Ade Suharsono, said that the administration built the mall to accommodate 500 vendors, but as of August 2008, there were only about 150 occupying available spaces.

He said the administration gave three-year free spaces for the vendors and would pass these free spaces onto other vendors so that other SMEs had a chance to develop their businesses.

"We admit that the number of vendors who occupy the market is still far below target. We will hold some events to attract more vendors and people to come to the mall," Ade said.

"There would be a Ramadan Fair, which would display hundreds of furniture items, from August 27 to September 27. There will be more upcoming events after that," he said.

Another vendor who runs an embroidery business, Wulandari Utoyo, suggested the administration should invite some well-known tenants, like restaurants or cafes, to set up in the mall.

"There are very few visitors. How can I sell all my goods if there are no customers? I'd rather join in a craft exhibition, which is more promising, than having a stall there," said Wulan, who sells handbags and shawls.

"The administration should be able to do something, like holding regular events or even asking well-known eateries to set up shop in the SMEs center to draw more visitors," she said.

Commenting on these ideas, Ade said the agency did not have plans to invite any popular tenants, because the mall was especially established for SMEs.

"I hope the vendors in the mall do not fully rely on the administration's assistance. They should also have some strategies to promote their products more. They should be able to produce cheap and good products, offer a fast service and follow trends," he said.