Matahari to review expansion plan<\/p>\n
JAKARTA : Indonesian retailer PT Matahari Putra Prima said Monday
\nit will review its expansion plan this year after the government
\nrecently raised electricity and telecommunication tariffs and
\nfuel prices.<\/p>\n
Matahari spokesman Danny Konjongian said the hikes will raise
\nthe company's cost of operation and will in turn affect its sales
\nthis year. However, he refused to provide figures.<\/p>\n
Matahari initially had planned to expand its businesses by
\nsetting up another seven department stores and seven supermarkets
\nthis year in a bid to boost its sales.<\/p>\n
\"But the price hikes have forced us to review the plan,\" he
\nsaid.<\/p>\n
The government raised fuel prices by between 3 percent and 23
\npercent, telecommunication tariffs by an average of 15 percent,
\nand electricity tariffs by 6 percent, effective Jan. 2.<\/p>\n
Konjongian said Matahari will strive to increase its
\nefficiency to mitigate the impact of the hikes.<\/p>\n
\"It's a challenge for us,\" he said, adding that if the plan to
\ncut costs is successful, Matahari expects to go ahead with its
\nexpansion plan.<\/p>\n
Matahari has 77 department stores and 64 supermarkets in 38
\ncities in Indonesia. --Dow Jones<\/p>",
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