FEW LOVE LUXURY GIFTS MORE THAN INDONESIANS. YET WE REMAIN OBSESSED BY IMPORTS. THIS SEASON, LOCAL HIGH-END PRODUCERS ARE OPTIMISTIC MORE OF US WILL LOOK LOCALLY FOR OUR SHOT OF LUXURY. BY HARUMI SUPIT

Buying domestic may be better for the economy and the planet, but it’s hard to resist the cachet of foreign brands when it comes to luxury purchases. The plethora of import-filled premium malls popping up in major cities is testament to the Indonesian public’s penchant for foreign goods. MasterCard estimates that the under 30s consumer luxury market alone will double between 2006 and 2016 to US$1.1 billion.

So what’s a luxury shopper with a taste for local products to do? Do not despair. While Indonesia has yet to produce a Ferrari or Rolex, a growing number of its producers are gearing up to take on their high-end foreign counterparts in a variety of product categories.

“Indonesian pride has started to emerge, as can be seen with more and more local brands,” says Syenny Widjaja, owner of Bakoel Koffie. “Being a truly Indonesian product, we have a very strong brand position in the local market and an exciting potential to be known worldwide.”

Ironically, many high quality domestic items already have a following overseas, but have difficulty expanding at home. One example is the cigar industry. Tobacco from the Deli regions in Sumatra, from Besuki in East Java and from Vorstenlanden near Jogjakarta, is highly sought after on the world market. Yet Indonesians still tend to prefer Cuban cigars instead of some excellent homegrown alternatives like Djarum’s hand-rolled Dos Hermanos line, which has had great success abroad.

The story of Warwick Purser Lifestyle homewares, which was acquired by retail powerhouse Mitra Adiperkasa Tbk in 2003, is similar. Sales from its export-oriented sister company, Out Of Asia, outstrips domestic sales, claims commercial manager Teky Priyanto. Its products are being stocked in stores like Harrods and Macy’s as well as mass-market chains, yet its domestic presence is still limited to a few premium malls and stand-alone stores.

This is mainly because the local market is still limited. There is a lot of money floating around Indonesia but distribution is uneven, leaving just a small group with the kind of buying power to casually order a Rp 50 million evening gown.

Meanwhile, many local manufacturers struggle to achieve consistent quality control. Effective marketing is also the key to overcoming the compulsion to buy foreign brands, born of decades of experience where quality has been synonymous with imports.

Yet this stigma is fading when it comes to art products – and has never really applied to high fashion.

“Market response has been pretty good,” says Lans Brahmantyo, managing director of Jakarta-based Red & White Publishing, whose meticulously designed coffee table photography books focusing on Indonesian subjects can cost over 1 million Rupiah (US$107.32).

“The problem is just the channel,” Brahmantyo says. He sees distribution and branding as an issue that local companies still struggle with. Helped by the Internet, the company sells about 30 percent to overseas markets – and is hoping to improve on that – with the remaining 70 percent comprising domestic orders.

As for successful local fashion designers like Biyan and Sebastian Gunawan, they need no assistance fending off foreign competition.

In 2004, Gunawan won first prize in the IAF World Young Designer competition in Barcelona, Spain. Meanwhile, Biyan has a presence in Singapore now. Their designs fill society magazines alongside Louis Vuitton bags and Chanel jackets, despite commanding prices of hundreds and often thousands of dollars.

However, foreign influences can sometimes help pave the way towards expanding the local market.

Bakoel Koffie’s successful expansion was greatly assisted by the taste-making popularity of foreign chains like Starbucks and Coffee Bean, which helped make a 30,000 Rupiah (US$3.22) cup of coffee acceptable.

The family-owned coffee company which dates back to 1878 has also been smart enough to play up its heritage with old-style 1930s décor and packaging, even though it caters to a young, hip crowd.

It appears luxury and tradition can still go hand in hand. And yes, for a fee they’ll even deliver straight to your home.

HIGH-END AND HOMEMADE

DAVIDOFF
Plaza Indonesia Floor 1, no 69A Jl MH Thamrin Kav 28-30 Jakarta Pusat. Tel (021) 310 7722

BIYAN
Biyan Showroom, Plaza Senayan Level 1, No 125C-131, Jakarta. Tel (021) 572 5229. www.biyan.com

SEBASTIAN A GUNAWAN
Head Office: Harmoni Plaza Blok K No 1 Jl Suryapranoto No 2, Jakarta Pusat.Tel. (021) 632 8470

RED & WHITE PUBLISHING
Jalan Merpati Raya 45, Menteng Dalam, Jakarta 12870. Tel +(021) 830 6819 www.rwpublishing.com

BAKOEL KOFFIE
Branches: Jl Senopati No 35 Jakarta Selatan. Tel (021) 3193 6608 Jl Cikini Raya 25, Jakarta Pusat. Tel (021) 739 7459

WARWICK PURSER LIFESTYLE
Jl Kemang Raya 37A, Jakarta Selatan, tel (021) 719-3317