Local retailers say keep ban<\/p>\n
JAKARTA (JP): The newly established Association of Indonesian
\nRetailers appealed yesterday to the government that it maintain
\nthe restriction on foreign investment in domestic retail
\nbusinesses.<\/p>\n
The association's chairman, E. Dachlan, said yesterday that
\nthe country's retail industry should be closed to foreign
\ninvestments to protect local companies.<\/p>\n
Speaking at a hearing with the Trade and Monetary Commission
\nof the House of Representatives, Dachlan said medium and large
\nscale retailers are still unable to compete with foreign rivals,
\nwhich are not only stronger in terms of capital but also in
\ntechnology.<\/p>\n
Despite the ban, foreign retailers are able to operate in the
\ncountry by exploiting legal loopholes, such as by being engaged
\nin franchising operations with local partners. Some of them use
\ntechnical cooperation to cover up their Indonesian operation.<\/p>\n
The operation of such big names as Japan's Sogo, Yaohan and
\nSaebu as well as Metro of Singapore in the capital's most
\nstrategic areas indicates how ineffective the Indonesian
\nregulation is.<\/p>\n
Other big names in the world's retail industry, such as K-Mart
\nof the United States, will also follow suit and tap into the
\ngrowing local retail industry.<\/p>\n
An executive of the association said the mushrooming of
\nforeign retailers has resulted from the government's obscure
\nruling.<\/p>\n
Anton Lukmanto, the association's deputy chairman for
\nsupermarket operations, said that the government's regulations
\nfor retail activities were often misinterpreted due to the lack
\nof clear guidelines.<\/p>\n
He did not directly criticize the banning of foreign retailers
\nbut said that the existing ruling did not fully protect the
\ninterests of local retailers.<\/p>\n
\"What we want is a clear-cut ruling so that we can be secure
\nin conducting business,\" he said at the hearing.<\/p>\n
The association was established last December as a
\nprofessional organization grouping retail companies, including
\nthose involved in the sale of construction materials.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-retailers-say-keep-ban-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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