Big chains may cause job losses<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The rapid expansion of modern retail outlets like hypermarkets
\nand minimarkets in big cities may have forced many traditional
\ngrocery stores to close down, creating huge job losses, according
\nto a preliminary finding of the Central Statistics Agency (BPS).<\/p>\n
The latest 2003 National Labor Force Survey (Sakernas),
\npublished by BPS, reported that jobs in the retail sector during
\nthe year declined by 7.42 percent to 4.24 million from 4.58
\nmillion in 2002.<\/p>\n
\"Our preliminary hypothesis is that the growing number of
\nhypermarkets and minimarkets probably contribute significantly to
\nthe declining trend,\" Aden Gultom of the BPS workforce sub-
\ndirectorate told The Jakarta Post on Tuesday.<\/p>\n
Aden, who had been involved in the survey, said that the BPS
\nwas now in the process of reevaluating the finding. The agency
\ndoes not clearly define what it considers a traditional grocery
\nstore.<\/p>\n
But Bambang Widianto, a director at the National Development
\nPlanning Agency (Bappenas), said that the decline in jobs in the
\nretail sector was probably related to the overall poor business
\nand investment climate in the country, prompting many businesses
\nto close down and discouraging new investment.<\/p>\n
During the past few years, modern retail outlets have been
\nmushrooming in the country particularly in the capital city of
\nJakarta and its surrounding areas, taking advantage of the strong
\ndomestic consumption, which has been the main engine of economic
\ngrowth.<\/p>\n
The number of convenience stores, for example, increased to
\n100 in 2002 from only 45 in 2000, while the number of
\nsupermarkets including minimarkets rose to 802 from 737,
\naccording to AC Nielsen data.<\/p>\n
Hypermarkets, which are relatively new in Indonesia have
\nexperienced the highest growth, rising to 37 in number in 2002
\nfrom 27 in 2000. But the data also suggests that the number of
\ntraditional grocery stores also increased to 1.89 million from
\n1.88 million in the same period.<\/p>\n
The condition in 2003 may have changed particularly as modern
\nretailers took more aggressive expansion steps. From 1998 until
\nthe first five months of this year, five large format stores
\n(including hypermarkets and those that require membership) have
\nopened around 54 outlets.<\/p>\n
French company Carrefour has been seen as the most aggressive
\n(and probably the most successful) in expanding its hypermarket
\nbusiness in the country.<\/p>\n
Carrefour started the hypermarket business here in 1998,
\nopening its first outlet in Kuningan, South Jakarta, selling no
\nless than 50,000 goods varying from screwdrivers, clothes,
\ntelevisions, meat and fruit to fresh-from-the-oven pastries.<\/p>\n
Other modern retailers operating in the country include
\nMatahari, Makro, Alfa, Hero, Clubstore, Tops, Super Indo, and
\nIndomart. Indomart has successfully penetrated residential areas.<\/p>\n
Industry experts have said that the mushrooming of modern
\nretail outlets is part of the changing lifestyles in big cities
\nas occurred in other countries.<\/p>\n
But some critics have lambasted the government (which benefits
\nfrom taxes and foreign and domestic investment figures) for
\nfailing to protect traditional stores. They say that many in fact
\nhad violated government regulations.<\/p>\n
The Jakarta administration has issued Bylaw No. 2\/2002 on
\nprivate markets in Jakarta, which regulates pricing policies,
\nminimum distance from traditional markets and cooperation with
\ninformal businesses.<\/p>\n
The bylaw stipulates that minimarkets must not price their
\ngoods at rates far lower than those in grocery stores in the area
\nand must be located outside a radius of 0.5 kilometers from
\ntraditional markets.<\/p>\n
Meanwhile, hypermarkets must stock nine basic needs supplied
\nby small enterprises through a partnership program, and must be
\nlocated outside a radius of 2.5 km from traditional markets and
\nmust provide space for informal businesses, including street and
\nsidewalk vendors, in up to 20 percent of its area.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/big-chains-may-cause-job-losses-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}