Indomaret puts chain expansion on hold<\/p>\n
JAKARTA (JP): Retail chain Indomaret decided to stop its
\nexpansion in the city, pending the government's approval of its
\noperation permit application for its 142 outlets in the city, a
\ncompany director said on Friday.<\/p>\n
The company's operational director Josep Setiawan admitted
\nthat Indomaret had so far run its business without operation
\npermits. However, he claimed that all of the outlets had secured
\nbuilding and business permits.<\/p>\n
"We propose to get the operation permits," he said in a
\nhearing with City Council Commission B for economic affairs.<\/p>\n
He said that 90 of the 142 outlets belonged to the company
\nwhile the remainder belonged to cooperatives and individuals that
\ncooperated with firms through a franchise system.<\/p>\n
Indomaret was earlier accused of violating gubernatorial
\ndecree 50\/1999 on retail business. The decree stipulates that a
\nshop measuring up to 200 square meters should get operation
\npermits from the city administration.<\/p>\n
Meanwhile, commission B secretary Dani Anwar regretted that
\nthe administration was late in anticipating the growth
\nof retail shops.<\/p>\n
"Since the beginning, the administration should have decided
\nwhether to give permits or not. It should not have waited until
\nthe shops amounted to hundreds," Dani of the Justice Party said,
\ndisclaiming any interest while questioning Indomaret.<\/p>\n
Chief of the market division of the city's economic office
\nRetno Kumorowati admitted that the administration was still
\nprocessing Indomaret's application for operation permits.<\/p>\n
"We have yet to issue the permits since some requirements have
\nnot yet been fulfilled," Retno said.<\/p>\n
In the hearing, the company's executives complained about why
\nonly this company was questioned about its operation permits.<\/p>\n
Commission member Ugiek Soegihardjo denied that the council
\nwas discriminating against Indomaret.<\/p>\n
"We will also invite Alfa Mart. It's not only for Indomaret,"
\nUgiek of the Indonesian Democratic Party of Struggle told
\nreporters after the hearing.<\/p>\n
Alfa Mart reportedly cooperated with city administration-owned
\nretailer Waserda Jaya to develop dozens of outlets in the city.<\/p>\n
The Business Competition Supervisory Commission (KPPU)
\nannounced earlier that there were indications that Indomaret had
\nforced other small retailers out of business.<\/p>\n
Indomaret has been accused, among other things, of controlling
\nmore than 50 percent of the small retail market and killing off
\nsimilar retailers in the process. It also has been accused of
\nsolely marketing products from its parent company, publicly
\nlisted PT Indofood Sukses Makmur.<\/p>\n
However, Josep denied all the accusations on Friday, saying
\nthat only 10 percent of the products that were sold by Indomaret
\ncame from its parent company.<\/p>\n
He said the remaining 90 percent came from various firms, such
\nas the Unilever and Nestle groups. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indomaret-puts-chain-expansion-on-hold-1447893297",
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