Businessmen oppose sales regulation<\/p>\n
JAKARTA (JP): The Indonesian Retailers Association expressed
\nyesterday strong opposition to a suggestion from a group of
\nstore-owners, called AP3I, that the government regulate sales to
\nprevent a price war among retailers.<\/p>\n
"Regulating sales is contrary to the spirit of deregulation
\nand the market mechanism, which the government has been
\npromoting," H.E. Dachlan, the association's chairman pointed out.<\/p>\n
Dachlan was commenting on a recent letter from the AP3I, which
\nasked the trade minister to regulate discount sales because such
\na sales campaign had tended to turn into a price war among
\nretailers.<\/p>\n
The AP3I also suggested that the government allow foreign
\nretailers to operate in the country through joint ventures to
\nhelp domestic retailers enter the international market.<\/p>\n
However, the association argued yesterday that the price
\ndiscounts granted by retailers are still within normal business
\npractices and can by no means be considered dumping.<\/p>\n
"Regulating sales, as suggested by the AP3I, is entirely
\nagainst the deregulation and market economy which has been
\npromoted by the government over the past 10 years," Dachlan said.<\/p>\n
He argued that both big retailers, such as department stores
\nand supermarkets, and small retailers get price discounts from
\nsuppliers.<\/p>\n
"That way, both groups of retailers would not be, in any way,
\nengaged in a price war, especially because small shops, which
\nmostly use a bargaining system and not fixed-price sales system,
\nhave more business flexibility," Dachlan added.<\/p>\n
He also saw the suggestion to allow foreign retailers in as
\nstrange because that is not the way to develop the domestic
\nretail service.<\/p>\n
Moreover, Dachlan argued, several foreign retail chains have
\nentered the country through franchise agreements with local
\ncompanies.<\/p>\n
Retailers will open a two-day sales bazaar near the Sarinah
\nshopping center on the Thamrin thoroughfare on Aug. 5, in light
\nof celebrating the 50th anniversary of Indonesia's National
\nIndependence Day.<\/p>\n
The bazaar, which will offer price discounts of up to 50
\npercent, will be opened by Mrs. Tien Soeharto, the country's
\nFirst Lady. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/businessmen-oppose-sales-regulation-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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