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Six-digit dollar profits for digging six feet under
Rest in peace: Residents visit the graves of deceased family members at Karet Bivak Cemetery in Central Jakarta
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Rest in peace: Residents visit the graves of deceased family members at Karet Bivak Cemetery in Central Jakarta. JP/Arief Suhardiman
Economic crisis does not always mean slow business. While many complain about the crisis these days, funeral services are not feeling the pinch at all.
People always need burial services no matter what the global financial situation.
For many people, a funeral is their last chance to do something for their late loved ones — to respect them and to be grateful for all that the deceased has done during their lives, and to mend mistakes.
“Well-off families are sometimes willing to spend hundreds of millions to provide the best service when any of their relatives die, even though the deceased cannot know of the lavishness,” said mortician and funeral organizer Mahanani.
This is apparently a profitable opportunity for funeral businesses.
Mahanani, also known as Nani, whose customers include families of the country’s top tycoons and high-ranking officials, said families usually asked for a premium service, including flower arrangements, decorations in funeral homes, catering and the entire memorial services.
“Those who have unlimited budgets usually let the organizer take care of everything, including decorations , as long as they are satisfied,” Nani said.
“Sometimes they only want imported flowers for the decorations and ceremony, which costs more.”
For a stylish service, a family can spend between Rp 300 million and Rp 500 million, she said.
Nani usually teams up with foundations or funeral homes to organize the service.
Most funeral foundations have membership systems, although they will also serve those who are not members for an extra price.
Members are entitled to get a full range of services, starting from facilities and equipment needed to hold the rite at funeral homes, various kinds and qualities of coffins, ambulance to take the remains to the cemetery and a graveyard.
Santo Yusuf, a Catholic funeral foundation located in Jelambar, West Jakarta, requires its members to pay Rp 4,000 per month per family for married members, and Rp 2,000 per month per person for singletons. The money is a kind of savings disbursed in the event of death.
Members are mostly part of the congregations of certain churches in the city, but the foundation accepts anyone. Those outside the church community must pay Rp 4,000
per person.
The foundation was established in 1972 and now has around 6,600 members.
“For members, we provided we provide a full service package for free when they or a relative dies, said Andi Basuki from the foundation’s organizing committee.
Those who are over 65 years old when they apply must pay for 50 percent of their coffin in advance, which costs them between Rp 1 million and Rp 1.5 million.
“For nonmembers who ask for our services, we charge them at least Rp 2.5 million for the coffin,” Andi said, adding that the foundation usually spent around Rp 4 million for a complete service.
A similar system is also applied by Yayasan Bunga Kamboja (YBK), located in Pasar Minggu, South Jakarta. The foundation has more than 100,000 members, most of which are Muslims.
YBK charges each member between Rp 4,000 and Rp 6,000 per month, and Rp 25,000 for admission fees.
Susan, the foundation’s administrator, said members could choose two membership types: A, with a monthly fee of Rp 4,000, and B, with a monthly fee of Rp 4,500.
Christian members should pay Rp 6,000 because their funerals cost more, she said.
Members are only able to use the service if they have been a member to foundation for more than three months.
“If a member dies before three months of membership, we charge them Rp 2.5 million for funeral service and Rp 600,000 for renting the ambulance,” Susan said.
If the deceased is below five years old, the foundation charges Rp 2.1 million, she added.
The foundation also offers condolence money of Rp 65,000 for the deceased’s family if they are enlisted as members of the B group.
Susan said the foundation usually received around 15 calls each day asking for the service.
Although the management of Santo Yusuf claims it is a social foundation rather than a business entity, Andi said the foundation enjoyed profits when it received requests from nonmembers to hold the services.
“It is not that profitable, though. We still have to use the money to operate the foundation, including paying workers,” Andi said.
Susan from YBK said, “We are a social foundation, but we cannot be entirely charitable, we need money to operate.”
St. Carolus in Central Jakarta, another funeral foundation, allows customers to choose the kind of services they would like to have.
“Our packages do not bind people to paying for services they do not need,” said Rentje Langkun, manager of St. Carolus funeral home.
“They are free to choose which one they like.”
While most foundations only provide pre-burial services without helping customers look for cemetery spaces, which is quite difficult to find in the already crowded city, the San Diego Hills memorial park sells cemetery land to people before they have passed away.
Although most Indonesias are not yet familiar with the concept of buying cemetery property in advance, the company’s sales are increasing, said San Diego Hills marketing director Manny Francisco.
“Our profits have gradually increased since our first year, starting with Rp 57 billion in 2007, Rp 63 billion in 2008. We expect Rp 120 billion this year,” he said, adding that the business was safe from the impacts of the recession.
San Diego, Manny said, was the only company offering the service to buy cemetery plots before death.
“Most of our customers are above the 55 years and come from [wealthy] households.
“Buying cemetery property in advance allows you to discuss with your family, and you buy it only once,” Manny said.
“But if you buy when your relative dies, you are not ready and people can take advantage of you because you are in a vulnerable condition.”
The company has sold more than 15,000 burial spaces at the 500-hectare memorial park in Kara-wang Barat, some 46 kilometers from Jakarta.
San Diego Hills offers various cemetery plots, with the gross price per space ranging from around Rp 27 million to Rp 70 million.
The company offers discounts to customers buying more than one space. It also provides credit facilities to those purchasing in advance, while charging higher prices on the purchases at the time when someone dies.
Buyers also obtain certificates of ownership and do not have to pay maintenance fees — unlike public cemeteries, which requires families of the dead to extend the leasing license every three months. (iwp)
