A Cautionary Tale…
A couple of weeks ago, we learned that one of our suppliers had almost been put out of business by a dishonest agent.
The story, in very short form, is a big customer from Europe put together a multiple container order of furniture, decor and handicrafts through his individual / independent agent in Bali.
The order was placed with the manufacturers here with a promise (but not the reality) of a deposit and work proceeded.
After a month or so, the agent requested the balance payment from his customer. All told, about one hundred and forty thousand US dollars (US$140,000).
That’s the last anyone heard of the agent. Disappeared without a trace.
There’s little else to say on the subject except:
- Established companies with a track record are less risky than individuals (I know we’re an established company and therefore biased but it doesn’t make it any less true). You can also ask for references and then check references.
- Forget law. During my time here in Bali, I’ve seen little use or satisfaction from ‘legal channels’ — you’re better off assuming you have no legal recourse and working through your business relationships from that angle. Protect your investment in every way you can. By this, I don’t mean to imply that in Indonesia people are less or more honest than people anywhere else… just that there’s practically no legal infrastructure of use to you if something does go wrong.
Sean