June 1998
Surabaya seems to have begun the slow climb back from the depths of crisis 1998.
I have lived in Surabaya for 2 and a half years. I have seen the city change over
the past 7 years.
When I first came to Surabaya in 1990 it was a one plaza city. Tunjungan Plaza
the cities major shopping centre was a one building affair. It has tripled in size
over the last 5 years. I mention this place first because it is the hub of Surabaya.
Surabaya is not famous for anything in particular, especially tourist wise. It is however
famous for TP (Tunjungan Plaza), and people from surrounding provinces and islands all
know the initials TP.
During the May 1998 crisis in Indonesia TP was baracaded like a fortress.
Barbed wire blockades set at the front and all windows facing the streets boarded up.
Military personnel were stationed at the front to warn off would be vandals.
Now, weeks after the crisis, Tp is getting back to normal Baracades pulled down blockades stored away,
but not locked away. It seems that the possibilty of further problems is possible and so
the protective equipment is being kept within arms reach.
This May crisis is not the only problem facing retail shops in Surabaya and also throughout Indonesia.
The continueing economic crisis is slowly affecting the stock supply.
Major department stores are slowly shrinking. Floor space is becoming greater.
Old stock is being pulled out of wharehouses and put back on shelves.
This is probably to maintain the public perception that there is no problem.
However thos people of a more discerning nature, or people of proffesional shopping ability like my wife,
can see that the variety of goods for sale is nowwhere near the same as previous years.
How long can major department stores, let alone small retailers continue.
Many shops in Jakarta remain closed because reatilers foresee the impossibility of
restocking their shops and are afraid that they will eventually have nothing to sell.
Major shops are also in a desperate situation for cash
and the old stock sales are one method for them to obtain cash turning
unused stock into money that can be used for repaying debts or for buying new stock. Liquidity is the catch phrase for the month.
We wait to see the result of negotiations between the government and the IMF.
Get your own Free Home Page
