Sunday, June 13, 2010

Luxury Cemetery in Indonesia

Most rich people live luxuriously and separately from ordinary people. Many of them prefer that after they die they would be buried in a luxury cemetery.

Please find below and article about a luxury cemetery that I have quoted from Seattle Times

Luxury cemetery in Indonesia comes with helicopter landing pad

San Diego Hills is the latest manifestation of how entrepreneurs can profit from the growing spending power of the world's fourth-biggest consumer market by population.
Bloomberg News
"This is a happy place," says Muhsin, who has bought several grave sites for family members. (Like many Indonesians, Muhsin only has one name.)

San Diego Hills is the latest manifestation of how entrepreneurs can profit from the growing spending power of the world's fourth-biggest consumer market by population. At least 35 million of Indonesia's 240 million citizens — equivalent to the population of Canada — are middle class and above, according to calculations by economist Cyrillus Harinowo, an independent commissioner of PT Bank Central Asia, the country's biggest financial-services company by market value.

Along with a boom in real estate, stock prices and sales of designer goods, Indonesia is experiencing a bull market in luxury burial plots. San Diego Hills, 29 miles outside the capital, was dreamed up by billionaire property developer Mochtar Riady, who with his son, James, controls a media, financial services and real-estate empire that includes property company PT Lippo Karawaci.

The Riadys bet there would be enough Indonesians rich enough to patronize a cemetery that resembled a country club.

To sell the cemetery plots, they hired Suziany Japardy, a career banker, who had been a regional manager at PT Bank Lippo, once owned by the Riadys.

"I was so worried about marketing this product," Japardy says.
She needn't have been. So far, 14,000 plots have been sold, and there's room for a total of 1 million bodies. Mochtar Riady has even re interred his parents there.

Three years ago, the cheapest single-grave plots sold for 3.5 million rupiah ($400). Today, the entry price has almost tripled to 9.5 million rupiah, with the most expensive memorials costing 8 billion rupiah. By comparison, residential real-estate prices have been rising at 10 percent a year, says Anton Sitorus, head of research at the Indonesian unit of Jones Lang LaSalle. Grave-sale revenue last year soared to 62 billion rupiah — a 21 percent increase over 2008, according to the Lippo Karawaci annual report. A secondary market has also sprung up, with San Diego Hills charging a 10 percent commission on each transaction.

Three years after opening, Lippo Karawaci still has the luxury cemetery market to itself.
"It's a very interesting idea and totally new in Indonesia," says Natalia Sutanto, a property analyst at Bahana Securities in Jakarta, who has a "buy" recommendation on Lippo Karawaci stock. "I think it will eventually give them a big profit, but I'm not sure I would want to get married there."


umihoney said...

Harimau mati meninggalkan belang,maanusia mati meninggalkan nama..Its irrelevant where is our final resting place..if we have contributed to the good of mankind and country, we will be remembered forever. Money spent on luxuries would have fed and educate if not thousand, a few deserving people. Too wide a gap in the inequality of wealth could be the seed for future problems in society..we just have to look at past history to know this.

H. Nizam said...

Thank you for reminding me about the popular adage which is relevant for this post. Yes, it would be better if the money spend for luxurious cemetery to be donated for needy people, that way the dead ones would be appreciated, remembered, perhaps prayed so that their spirit will rest peacefully.

Cygnus said...

I agree with opinions both of you, thank !

H. Nizam said...

Thank you for your visit and comment

colson said...

"It's a very interesting idea", Natalia Sutanto said.

My adjectives on the other hand would be: a slightly disgusting, slightly decadent, slightly respect-less idea.

Yet, alas, this kind of marketing is inevitable and intrinsic to a free market, capitalistic, philosophy.

H. Nizam said...

Hi Colson,
I agree with you that in a free society people are free to expand creativity in making money no matter it may sound absurd for others, as long as it is legal.