Major retailers expect sales growth of about 17% this year, slightly lower than the 20% recorded in 2006.
"We have calculated all the figures gathered from our members and have come up with a sales growth target of 17% from about Rp50.8 trillion ($5.64 billion) last year," Association of Indonesian Retailers (Aprindo) chairman, Handaka Santosa, said on Thursday (25/1/07).
Although 2007's projected sales growth will likely be lower than last year’s, Santosa said that the sales target is still a very healthy one for the retail industry. "Last year, the retail sector contributed 20% to the country's GDP," he was quoted as saying by The Jakarta Post.
"Last year, we targeted 20% growth from about Rp42 trillion in 2005, and we almost met the target, being just little below 20%. So, the 17% growth target for this year is quite realistic," he said.
Trade Minister Mari Pangestu meanwhile said that the government is in the process of drawing up legislation to create healthy competition among retailers, such as hypermarkets, supermarkets, minimarts and traditional markets.
"We have been preparing a presidential decree on modern markets for one and a half years now. It's not finished yet but I am optimistic that we will finalize it this March," she said.