Matahari to add fewer shops in 2006<\/p>\n
JAKARTA: PT Matahari Putra Prima, Indonesia's biggest retailer
\nby sales, said it plans to open fewer stores next year,
\nanticipating slower consumer spending after the government raised
\nhousehold fuel prices last month.<\/p>\n
Ten hypermarkets and nine department stores will be added next
\nyear, compared with 13 hypermarkets and 10 department stores
\nbudgeted for this year, director Danny Kojongian said in a
\ntelephone interview from the company's headquarters at Karawaci,
\nTangerang, west of Jakarta, on Wednesday.<\/p>\n
\"It's still early to say, but we expect to see a slowdown in
\nconsumer spending next year on lower purchasing power,\" Kojongian
\nsaid. \"Matahari's sales for the Idul Fitri season in October and
\nearly this month were good. Hopefully Christmas sales will be
\ngood. But things may be quiet after New Year.\"<\/p>\n
The government on Oct. 1 more than doubled fuel prices sold to
\nhousehold users to prevent fuel subsidies draining the nation's
\ncoffers. The increase, which sent the on-year inflation to a six-
\nyear high in October, left consumers in Indonesia with less money
\nto spend.<\/p>\n
A survey released earlier this week by Bank Indonesia showed
\nconsumer confidence in October dropped to the lowest level since
\nAugust 2003. -- Bloomberg<\/p>",
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