Australian groups hail Indonesian deregulation<\/p>\n
SYDNEY (Reuter): The prospect of Indonesia deregulating its
\ntransport and retail sectors has been welcomed by Australian
\ntransport group TNT Ltd. and wholesaler\/retailer Davids Ltd.<\/p>\n
Both Australian companies are establishing significant
\noperations in the distribution and retailing sectors in Indonesia
\nin ways which find routes through regulations restricting foreign
\ninvestment.<\/p>\n
Erroll Graham, Davids finance director, said yesterday his
\ngroup expected the Indonesian government would introduce de-
\nregulations covering the company's presence in Indonesia,
\npossibly by establishing a new category for wholesaling.<\/p>\n
\"We expect them to (do so),\" he said.<\/p>\n
Davids holds a technical service agreement with Indonesia's
\nbiggest supermarket group, PT Hero Supermarket. The agreement
\noperated as \"a joint-venture of sorts\", Graham said.<\/p>\n
Davids has been in discussion with the Soeharto government on
\nretailing deregulation for \"a good 12 months\", pressing for the
\ncreation of a separate category for wholesaling, he said.<\/p>\n
It was still uncertain whether the Jakarta government would
\nintroduce full deregulation for retailing, Graham said. \"We were
\nhoping that it would be introduced by now,\" he said.<\/p>\n
Deregulation of retailing was supposed to have come in the
\nlast Indonesian government package, but didn't, he said.<\/p>\n
Davids was helping Hero with its distribution and waiting for
\nderegulation changes with a view to running its own operation in
\nits own right, he said.<\/p>\n
Mark Gell, TNT group relations executive, corporate
\ndevelopment, told Reuters that TNT had already started
\nwarehousing and related operations in Indonesia in its joint-
\nventure with PT Tigaraksa Satria.<\/p>\n
\"A couple of things (remain) outstanding with the regulatory
\napproach,\" he said.<\/p>\n
Anything which would improve the distribution of goods in
\nIndonesia would assist TNT's operations, he said.<\/p>\n
Tigaraksa Satria is Indonesia's leading national distributor
\nof food, consumer products and related items.<\/p>\n
TNT's joint-venture with the company technically stops short
\nof distribution, which legally remains closed to foreign
\ninvestment.<\/p>\n
Comments by TNT and Davids follow the announcement of plans in
\nJakarta this week by Indonesia's Coordinating Minister for
\nIndustry and Trade Hartarto, that a major package of economic
\nderegulation was planned for introduction before year-end.<\/p>\n
The package would include measures to liberalize internal
\ndistribution of goods, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/australian-groups-hail-indonesian-deregulation-1447893297",
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"sponsor": "Okusi Associates",
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