Local retailers not ready for global competition<\/p>\n
JAKARTA (JP): Indonesian retailers, facing World Trade
\nOrganization (WTO) principles on trade liberalization, said
\nSaturday they are not ready to compete with foreign retailers in
\nthe near future.<\/p>\n
\"We have to assess our competitiveness, not to mention the
\nquality of our retail products which are still quite low,\"
\nSecretary-General of the Indonesian Retailers Association
\n(Aprindo) Suryadharma Ali told The Jakarta Post at a retail
\nconvention here.<\/p>\n
According to WTO principles, Indonesia, as a developing
\ncountry, is required to gradually open its domestic market to
\nforeign retailers.<\/p>\n
Supervisory council member Steve Sondakh said that it is not
\nyet the right time to start opening the Indonesian market to
\nforeign retailers because only big domestic retailers are in a
\nposition to compete.<\/p>\n
The director of the Indonesian Business Data Center,
\nChristianto Wibisono, suggested last week that the government
\nshould start allowing foreign retailers to enter Indonesia on a
\nreciprocal basis which would require the retailers's countries to
\nlet in more Indonesian products.<\/p>\n
Christianto's suggestion was supported, but with reservations,
\nover the weekend by retailers Matahari Group and Metro
\nSupermarket Realty.<\/p>\n
\"Matahari is ready to compete with foreign retailers and the
\ngovernment's protection of the retail market could be loosened
\ngradually,\" Matahari's president, Hari Darmawan, told the Post.<\/p>\n
\"The most important thing is that the government includes
\nAprindo members in establishing strategies to help all retailers
\nget ready for competition,\" he said.<\/p>\n
\"It's okay to open the door to foreign retailers as long as we
\ngain profits equally,\" an assistant to the president of Metro
\nSupermarket, Subagio Sulistyo, said.<\/p>\n
Aprindo executives from North Sumatra and Bali said they are
\nready to compete with foreign retailers as long as the government
\nsimplifies its bureaucratic procedures and reduces levies.<\/p>\n
A number of convention participants said the low quality of
\nhuman resources and the torpid bureaucracy are the problems that
\nneed to be solved immediately to help domestic retailers compete
\nagainst their foreign rivals.<\/p>\n
Director General for Planning and Development at the Ministry
\nof Manpower Yudo Swasono said that standards of competence for
\nretailers should also be established to encourage domestic
\ncompanies to improve their human resources to be able to compete
\nfairly.<\/p>\n
He said Aprindo should provide the criteria of competency.
\n\"Special education programs in retail business should then be
\nestablished based on the standards,\" he said.<\/p>\n
However, North Sulawesi retailers contacted by the Post said
\nthat they are not ready to face competition with foreign
\nretailers due to the poor quality of their human resources. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-retailers-not-ready-for-global-competition-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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