Sat, 28 Mar 2009
From: The Jakarta Globe
By Teguh Prasetyo
The Business Competition Supervisory Commission, or KPPU, plans to investigate allegations of monopolistic practices by the local arm of French retail giant Carrefour SA, especially accusations that the retail giant charged the supermarket’s stall-holders “excessive” rental fees.

The chain is also alleged to have gained an unfair advantage through its acquisition of mini-market retailer PT Alfa Retailindo Tbk.

“From our investigative reports we have obtained data that show Carrefour has allegedly provided more and more space leased at expensive rates and charged expensive trading terms for suppliers of goods and vendors at their outlets,” KPPU chair Benny Pasaribu said on Friday.

There was a danger that Carrefour, which has enjoyed great success in Indonesia in the past few years, would shut out all competition in the sector, Benny said.

Carrefour, he continued, was increasing its acquisitions of smaller retailers to bring them under the popular Alfamart chain, which could result in a monopoly in the modern mini-market sector.

Alfamart’s competitors include the Indomaret and Circle K brands.

“The commission has found sufficient evidence that Alfa’s acquisition by Carrefour has increased the retailer’s total market share [of supermarkets and mini-markets] to more than 30 percent nationwide, and this is worrying,” Benny said.

In 2004, the KPPU fined Carrefour Rp 1 billion ($87,000) for unhealthy competition, after wholesalers supplying the supermarket chain complained about its “minus margin” system, which allowed the retailer to demand a lower price from wholesalers if it discovered lower prices for similar goods at competing supermarkets.

The KPPU argued that this provision was anticompetitive.

Responding to the KPPU’s move, PT Carrefour Indonesia’s corporate affairs director, Irawan D. Kadarman, said on Friday that “Carrefour management itself has yet to receive any official letters from KPPU, so we cannot give a proper response as we need to learn first the main ideas behind the commission’s allegation.”

In terms of rents and trading terms, Irawan said Carrefour was in full compliance with a 2008 Trade Ministry decree on the management of traditional markets and modern retail outlets.

He denied Benny’s claim that Carrefour’s market segment after acquiring Alfa Retailindo was 30 percent. He instead put the figure at about 7 percent, citing research from the Neilsen Company.


Sat, 28 Mar 2009
From: JakChat
Comment by Piss Salon
"There was a danger that Carrefour, which has enjoyed great success in Indonesia in the past few years, would shut out all competition in the sector, Benny said."

Why is it a success exactly?

Let them sell goats, I say.


Sat, 28 Mar 2009
From: JakChat
Comment by KuKuKaChu
this is indeed a very strange reaction by certain sectors of indonesian society. we all love to hate carrefour, of course. i mean, they're french, aren't they? nonetheless, punishing a company for being competitive and efficient is just plain stupid.


Sat, 28 Mar 2009
From: JakChat
Comment by Piss Salon
Who owns Indomaret?


Sat, 28 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: Piss Salon
Who owns Indomaret?


It was a Salim Group thing, possibly still is, though most outlets are franchises.


Sat, 28 Mar 2009
From: JakChat
Comment by Piss Salon
I would have thought, and I don't know obviously, that you would have to get approval for such an acquisition first, rather than to have some grubby official hunt you down later.


Sat, 28 Mar 2009
From: JakChat
Comment by KuKuKaChu
i don't think circle K and indomaret have too much to worry about. they are among indonesia's best franchise stores. i'm certain they could match anything carrefour did through Alfa.


Sun, 29 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: KuKuKaChu
i don't think circle K and indomaret have too much to worry about. they are among indonesia's best franchise stores. i'm certain they could match anything carrefour did through Alfa.


I had long hoped that Circle K might have a Jewish connection, given that a K within a circle is often used as the symbol for 'kosher parve'. Unfortunately Circle K commenced life as Kay's Food Stores in Texas and was renamed Circle K in 1951.

Kosher symbol:


Late night cigarettes and sandwiches from opposite Eastern Promise:


Lame Kompas comic:



Sun, 29 Mar 2009
From: JakChat
Comment by Roy's Hair
Yes Sirkel Ke. I've had similar problems with cab drivers on many occasions. What the fuck are you supposed to call it? Sirkel Kah, Lingkar Kah, Toko Kah?


Sun, 29 Mar 2009
From: JakChat
Comment by KuKuKaChu
how about "toko huruf K"?


Sun, 29 Mar 2009
From: JakChat
Comment by Roy's Hair
Tried that one. Often draws blanks too.


Sun, 29 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: Roy's Hair
Tried that one. Often draws blanks too.


Where are you going that necessitates giving a cab driver directions to Circle K? The shop itself because they sell those Mars brand rolling papers?


Sun, 29 Mar 2009
From: JakChat
Comment by Vulgarian
God damn glueless skins necessitate too much flob to seal a doobie.


Sun, 29 Mar 2009
From: JakChat
Comment by Roy's Hair
They don't even sell 'em any more. Having to resort to a hollowed out cat.


Sun, 29 Mar 2009
From: JakChat
Comment by Polisi Cepek
Just don't try and re-enact my borrowed carving-knife and coke-can antics.


Sun, 05 Apr 2009
From: JakChat
Comment by Dontpanic
Not sure I would believe any GOI data over Nielsen,even though it is now Dutch, which shows Carrefour having a 7.7% market share. Also, if this is a monopoly, why do they have the best prices out there?

Surely, there couldn't be other motives could there? I would be shocked. Shocked.

Also, why can't Makro pay off the right people to stop their fucking lunacy with membership cards and bulk purchases because their license is "Wholesale". If they fix it, they might even be able to compete? Those regulations go back years and this is Indonesia.



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