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Jakarta Post

Security services Business flourishing

Opportunities in the security service business are indeed lucrative

Iwan Suci Jatmiko (The Jakarta Post)
Jakarta
Thu, October 30, 2008

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Security services Business flourishing

Opportunities in the security service business are indeed lucrative. For professional security, in the past people would usually seek help from the police, hire retired policemen or soldiers or recruit security guards as full-time employees. Today, however, these recruitment practices are rarely used.

In Indonesia, the market potential of a security service business is lucrative. The reason is that businesses are usually reluctant to employ security personnel as full-time or contract staff. Generally, security needs are outsourced to companies providing security services. The benefit is that a company or an individual does not need to think about such things as pay, allowances or social security payments.

The demand for security services in Indonesia is indeed quite high. However, the level of security awareness of security service users in Indonesia is relatively lower than in Asian other countries. Demand for security services in Indonesia tends to increase every year. Nevertheless, the growth rate is slightly lower than in other Asian countries. Japan is the barometer for the demand in security services in Asia as the growth in demand for security services in there is higher than in other Asian countries.

In a way, the sense of security seems to fluctuate, as indicated by the sales volume of security devices such as metal detectors and car inspection mirrors -- two products that sell well when there are rumors of a bomb threat. However, the fact that there is higher demand for security devices when there are of rumors of a bomb threat cannot be used as an absolute yardstick. "A bomb threat or even an actual bombing may not jack up sales of security products because a user may not be able afford such products. However, the need to buy such products is there. So it all depends on the financial condition of the user. A hotel, for example, needs expensive security devices but may be unable to buy these devices due to budget restraints," said Lea K. Indra, marketing and communications manager of PT Indolok Bakti Utama (Gunnebo).

The need to feel secure has become a commodity of its own. There is an alluring demand for security, ranging from security personnel to corporate asset security. Which explains why there are some 300 security service companies registered, although only about 100 are still active. Unfortunately, there are only a few major players in this business, which is dominated by foreign security service companies.

Take, for example, PT SECOM Indopratama, which is a subsidiary of SECOM Co. Ltd in Japan. Set up in 1994, PT SECOM Indopratama provides security services, security devices and security guards to all parts of Indonesia. The company boasts that it offers a total security solution. SECOM combines the power of man and machine to create an effective and efficient security solution. SECOM has a Monitoring Center system. In Japan, SECOM handles the security system of Narita Airport, Haneda Airport and an airport in Osaka. In Jakarta, SECOM clients are made up of private banks, electronics companies and supermarkets.

Another player in the security business is PT Indolok Bakti Utama. Founded in 1972, it is a division of Gunnebo AB, a business group headquartered in Gothenberg, Sweden.

Gunnebo is noted for its highly innovative security products. These products are categorized as: Secure Storage, Cash Automation, Entrance Control, Electronic Security, Outdoor Perimeter Security and Indoor Perimeter Security. Gunnebo has also introduced the revolutionary Safe Store Auto, which is a Safe Deposit Locker that operates using a robot-like machine. Gunnebo has also introduced Safe Pay and ImmSec (similar to a biometric passport). However, these two products are not yet available in Indonesia.

According to audited data released by Gunnebo, up to 2007, the business turnover of Gunnebo, supported by 6,700 employees the world over, reached 760 euro per year.

SECOM and Gunnebo are just two of a number of companies in the security business. Similar companies of local and international levels include Bravo Humanika Perkasa (BHP), the Cisco Group, Security Group Artha (SGA), 911 and a merger company called G4S, which is better known for its transit service for valuables and for its security guards.

Prior to 1998, there were no more than 50 security service companies around. Following the May 1998 riots, a series of bomb threats and other security concerns, the number of security service companies increased sharply. It was not until 1999 that security service businesses were regulated in Indonesia.

As their operations are related with security, a security service company must comply with the joint decree of the Manpower and Transmigration Ministry, Home Ministry and National Police, and must have a business license issued by the regional police. To some extent, the security service business may be considered an extension of the police. A security service business provides protection and maintains security in a standardized operation.

Over time, the security service business has become more than just the provision of security guards. This business has developed further in line with the demand to create security. Other businesses derived from security service include the provision of body guards, escort of valuables and security devices.

Security guards are only one element of the security personnel that security service companies offer. So don't be surprised to see a tough-looking armored vehicle like in the film Lethal Weapon on the road. Armored vehicles are operated by companies providing deliveries of valuable goods. Some security service companies also provide private investigators.

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