On the fifth floor of Southeast Asia’s biggest textile market, Indonesian trader Toni Sar waves a white envelope to signal surrender as he points to shuttered units forced to close because of falling business.
“There are many who are not strong anymore. They can’t do it anymore,” said the 49-year-old clothes trader, who sells to 27 provinces around the archipelago by phone and mail order.
Temporary closure notices over failed rent payments were plastered on the metal shutters at Tanah Abang market in capital Jakarta, as Toni’s workers packed away Islamic clothing for customers around Indonesia.
The Islamic month of Ramadan is usually a bounty for commerce, especially for businesses that hawk robes, headdresses and accessories.
But traders at the huge market say the fasting month, which runs until the end of the month, is providing little respite as a post-pandemic lull and online shopping platforms cut into their coffers.
Toni said his revenue was down 50 percent compared to last year.
But “we hope for the best,” he added, saying he wished for an uptick in the run-up to the Eid Al-Fitr celebration at the end of Ramadan.
Clothes seller Ardino Putra, 33, said his sales had fallen a fifth to two billion rupiah from 2.5 billion ($153,000) the year before.
“Maybe because of economic factors, and maybe also due to the influence of online shops,” he said.
“It should be reduced… rent and service charges. Our payments remain the same… but our sales are low.”
Recently inaugurated President Prabowo Subianto has pledged to take Indonesia to developed economy status and eight percent growth, up from five.
But the economic outlook remains uncertain with Indonesia’s central bank forced in January to cut interest rates in a bid to boost economic growth and a weakening rupiah.
“The first few months of Prabowo’s administration are a cause for concern,” said Gareth Leather, senior Asia economist at Capital Economics.
‘Hold on’
In an ironic twist, offline markets are helping fuel online stores, and even attracting sellers from abroad.
Setting up a smartphone on a stand to begin a TikTok live, Yaya Azmi, a 22-year-old student, says she flew to Jakarta from Malaysia with her sister to source cheaper Islamic garments.
“It’s very good. Ramadan is the best time,” she said.
Her income has risen five-fold during the holy month due to orders placed on TikTok and messaging app Telegram, she said.
For older buyers, traditional markets like Tanah Abang remain the go-to.
“Everything is complete here, there are many choices, and the prices are cheap,” said housewife Hani Nayowan, 60.
“Before the pandemic, it was more crowded. (The government) should create more jobs for the lower-class people so they have an income.”
Meanwhile the e-commerce market is booming in Indonesia, expected to grow from nearly $53 billion in 2023 to $87 billion in 2028, according to the US International Trade Administration.
Sellers like Ria Angrenni, 37, say livestreaming and online sales industries are harming traders in the market, with many forced to adapt to keep the lights on.
She called on the government to tax online platforms more, with Tanah Abang vendors forced to pay a service charge of one million rupiah ($62) a month on top of rent.
Yet online business now accounted for 35 percent of her trade, with the rest offline sales.
“If I can follow the trend, the sales will be good,” she said.
Business groups say shifting shopping behaviours and a failure by some traders to move with the times were piling on the pain.
“It should not be surprising if traders that solely rely on offline shopping suffer from a lack of sales performance,” said Shinta Kamdani, chair of the Indonesian Employers Association.
“Indonesia’s biggest consumer base today is millennials & Gen-Z. They are more drawn to shop at modern market settings.”
But trader Toni, surrounded by bolted shop units, refuses to give up.
“I have to hold on. Where else can I go?” he said.
“(Keep the) spirit!”
