PT Makro to expand Indonesian operations<\/p>\n
JAKARTA (JP): Netherlands-based chain wholesaler PT Makro
\nIndonesia said on Monday it would expand its operations in the
\ncountry by opening more new outlets in various areas outside
\nJakarta.<\/p>\n
Company president Matthijs van der Lely said Makro would open
\ntwo outlets in Medan, North Sumatra, and Jakarta this year and
\nplanned to open three outlets per year in the future.<\/p>\n
\"We're looking forward to opening new stores in prospective
\nareas such as Semarang, Bandung, Palembang, Batam, Makasar and
\nBalikpapan. We're now in intensive talks to acquire some land in
\ncertain areas for our next outlets,\" he said.<\/p>\n
He said the company expected to finalize the land deals
\nimmediately so that it could start the construction of two new
\nstores this year.<\/p>\n
He declined to reveal the amount of investment Makro had
\nallocated to finance its expansion plan, but said that it cost
\nabout US$10 million to develop one outlet.<\/p>\n
Makro Indonesia, which is 83 percent owned by the Dutch retail
\nchain operator SHV Holdings, started it operation in 1992 when
\nits first outlet opened in Pasar Rebo, East Jakarta.<\/p>\n
Van der Lely said Makro's business was currently concentrated
\nin Jakarta, where it operated six outlets.<\/p>\n
He said that outside Jakarta, Makro had three other stores,
\nlocated in Surabaya, Bandung and Bali.<\/p>\n
Makro will open next week a newly built outlet in Medan, North
\nSumatra, as well as an outlet in Ciputat, in southern Jakarta,
\nwhich was burned down during the 1998 riot. The Ciputat outlet is
\nscheduled to open on the week end.<\/p>\n
He said retail market in Indonesia was expected to continue to
\npick up after being depressed, especially during the political
\ncrisis in 1997 and 1998 when mobs attacked and burned a
\nsignificant number of retail outlets.<\/p>\n
He said several new foreign retailers planned to enter
\nIndonesia to take advantage of the predicted growth in the local
\nretail market.<\/p>\n
Among the potential foreign retail chains soon to enter
\nIndonesia, he said, were British hypermarket chain Tesco and
\nGermany's diversified retail chain Metro International AG.<\/p>\n
\"Tesco, for example, is already operating in some Asian
\ncountries like Malaysia and Thailand. It will eventually come
\nhere as well,\" he said, adding that new foreign retailers would
\nlikely come here through mergers and acquisitions.<\/p>\n
Van der Lely also predicted that the existing foreign
\nhypermarket chains would further expand their operations here by
\nopening more new stores in the coming years.<\/p>\n
He said in order to anticipate the influx of other giant
\nforeign retailers, Makro would move deeper into its targeted
\nmarket, the local smaller retailers.<\/p>\n
The company's plan to expand to outer islands is also part of
\nthe strategy to anticipate fiercer competition from foreign
\nwholesalers, he said.<\/p>\n
He said Makro's plan of expansion would not necessarily
\nthreaten major local retailers like Matahari and Hero.<\/p>\n
\"We are not their competitor,\" he said.<\/p>\n
Major local retailers have been accusing foreign hypermarkets
\nof destroying small retailers and traditional markets by
\ndeveloping their huge stores in the heart of the city and selling
\ntheir goods at cheaper prices.<\/p>\n
Van der Lely said none of the local retailers' criticism was
\nleveled at Makro, since his company located its stores only in
\nsuburban areas and sold its goods mostly to retailers and
\ncorporate buyers. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-makro-to-expand-indonesian-operations-1447893297",
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