ºÚÁϲ»´òìÈ

Ali Kusno, owner of Linda Gallery Jakarta, Singapore, Beijing, and Shanghai: Art is Not the Same as Shares The current global financial crisis is different from the monetary crisis of 1997. So, what should galleries do? What should auctions houses and artists do? The current global economic crisis is different from the monetary crisis of 1997. The 1997 crisis predominantly hit Asia, while, this time, everyone worldwide is affected. In the previous crisis, some people benefited, while others suffered. This time around, even the people with the money are feeling the impact, what more those with debts. And, I think that by next year, we will all be feeling the pinch due to the domino effect that has already begun. Six months before there was already a hint of the current crisis, Chinese curator and art critic Zhu Qi, sounded the warning that the price bubble at auctions houses—with prices reaching US$1 million and above—was expanding unreasonably and would surely burst. This criticism stirred controversy, with the media fanning the debate into a fiery inferno. Now, that bubble has actually burst, and the art market players have run out of ammunition. Those with money are reluctant to spend anymore. Whereas buyers who were once snapping up five artworks at a time, are now only buying one. Those who would only purchase one in the past are not buying at all now. Yes, in general, the Chinese art market is beginning to feel the impact of this crisis already. The sales of works that could have previously sold for over $1 million have halted altogether. While those that could have sold for $100,000 in the recent past have lost about 20 percent of their value on the market and the slide continues. The works that are selling best now fail to bring in any more than $10,000 to $20,000. Why is it that China is taking the hit first? Because of its extraordinarily large supply of artworks. Each year, up to 100 auctions can be held. The situation is different in Indonesia, where prices have never expanded in a balloon-like manner, and in fact, where artworks tend to be undervalued. People are still buying because the prices are low, and the supply is limited. We could probably count the number of auctions held in a year, which include works by Indonesian artists, on our fingers. Now that people who used to buy five works of art are only buying one, the real choice seems whether to buy one expensive artwork or five less expensive pieces. People are also starting to learn more about how best to buy contemporary art. Initially, many buyers were motivated by public opinion to purchase the works of certain artists. However, now they are more likely to look at the quality of the work itself. They are not averse to looking at the work of a new artist of it seems to hold promise. And prices are low now, meaning that buyers want to be sure that a painting will appreciate in value. The low prices are motivating people to continue buying and to expand their knowledge of contemporary art. The economic crisis has made it more imperative to consider the inherent quality of a work in order to ensure that the price is bound to rise with time. They see quality works by little known artists as inexpensive items of potentially great value. There are certain that there is a possibility that the artwork will be of more value down the line. New collectors are now showing more interest in works in the $50 million range than in the previous $100 million range, which is still quite a bit of money. Given the above, I expect and hope that the current economic crisis will mature the art market in Asia, including the auction houses, galleries and collectors, as well as the artists. A case in point is, as I have previously pointed out that, in principle, galleries do not compete with auction houses, nor with collectors, nor do they bind or extort artists. Galleries are also not art shops. Galleries are go betweens in the relations of collectors and artists. Galleries focus on promoting artists from the bottom to the top. They not only sell artworks, but are also responsible for the future of artists. Especially now that artists have become more mature and sophisticated; they want to be managed, by both galleries and curators. So galleries, curators and artists must unify. They are in the front lines of art, supported by the media and collectors. Galleries, artists, and curators must put on quality exhibitions. In this way, the media can see what is offered, and if the quality is there, pay positive attention. Collectors will then become interested and consider the works for inclusion in their collections. It is the galleries that must select the most promising of the budding artists and encourage their development. Once these artists have made some progress, say four or five years, the auction houses will start taking a look to see whose works are worth putting under the gavel. This is the path that must be taken. Yet, the current situation is a bit confused. The auction houses are immediately swooping down on and auctioning off new works directly from artists’ studios; or purchasing them outright and auctioning them later at events the auction houses arrange for themselves. Even though, the artists should be concentrating on consequential things like creating quality works and expanding their creativity. And once they have begun collaborating with galleries, the process is fluent. Therefore, all galleries must allow leeway for the development of the artists. If an artist can be developed only to the national level, then the contract should be limited to domestic activities. If the artist is capable of attracting attention in East Asia, then in East Asia; or internationally, then contracted exposure should be international. It would be completely unfortunate if artists were bound in such a way that they could no longer develop. In order to guard this stance, we must be certain that we can survive through hard times like those we are experiencing now. There should be no concern as far as quality works go, because people will always eventually become aware that quality works have intrinsic value. There is such a thing as natural selection. The works that lack quality will be set aside, the good ones will only rise in value. We should not lose hope; though, as the impact of the economic crisis will be fleeting. Even the latest auction in New York has offered a ray of hope. Paintings were going for as much as $30 million, meaning that potential is still there. Just remember, artworks are not shares, and hopefully their value will never become as transient.