Retailers face unpredictable future<\/p>\n
JAKARTA (JP): The Association of Indonesian Retailers
\n(Aprindo) said yesterday the country's retailers could record
\nhigh sales this year despite the economic turmoil, but the
\nassociation still anticipated an unpredictable outlook next year.<\/p>\n
Aprindo executive director Kustarjono Prodjolalito said retail
\nsales had risen in the last quarter of this year, exceeding sales
\nin the same period last year.<\/p>\n
The high sales, mainly booked by Jakarta retailers, were
\ngenerated by large purchases made by laid-off workers who wanted
\nto return to their home villages.<\/p>\n
\"Hundreds of thousands of workers have lost and will lose
\ntheir jobs due to the current economic crisis. These people have
\nbeen spending their severance pay to buy mementos before they
\nreturn to their home villages,\" Kustarjono said.<\/p>\n
He said the laid-off workers would continue their buying spree
\nuntil next month, but sales prospects would be unpredictable in
\nthe following months after they all returned home.<\/p>\n
He said there were also some reports saying people from
\nneighboring countries like Singapore and Malaysia were coming to
\nJakarta to shop to benefit from the rupiah's sharp depreciation
\nagainst the dollar.<\/p>\n
\"But we have no accurate data to confirm the reports,\" he
\nsaid.<\/p>\n
Kustarjono said despite high sales, retailers' revenue was
\nprojected to decline this year because they had to pay rent in
\ndollars, which had appreciated by more than 50 percent against
\nthe rupiah.<\/p>\n
He said retail business growth was projected to decrease to 15
\npercent this year, against an average 25 percent growth over the
\npast five years.<\/p>\n
He said the retailers' association could not forecast sales
\nand growth for next year due to the monetary fluctuation.<\/p>\n
\"The retail business looks like a man walking in the dark of
\nnight. It can fall into a hole at any given time,\" Kustarjono
\nsaid.<\/p>\n
Association chairman Steve Sondakh said the rent quoted in
\ndollars by property owners was very burdensome to retailers and
\ncould force some out of business.<\/p>\n
The association strongly opposed such practices and had called
\non the government to rule that retail space rental should be
\nquoted in rupiah.<\/p>\n
\"Long before the monetary crisis took place, we asked that
\nrental be quoted in rupiah. We urged such a measure again after
\nthe crisis occurred,\" Steve said.<\/p>\n
Steve said the association's members had promised not to lay
\noff workers during the monetary crisis.<\/p>\n
\"Laying off workers is the last option. What we are going to
\ndo is to increase the productivity of existing employees,\" said
\nSteve, who is also president of the Hero supermarket chain.<\/p>\n
He said the brunt of the monetary crisis was experienced by
\nretailers who mostly sold imported goods.<\/p>\n
The rupiah's depreciation made imported goods less competitive
\nthan local goods.<\/p>\n
Fortunately, Steve said, imported goods accounted for only
\nabout 10 percent of total merchandise sold at local retailers.<\/p>\n
\"The current situation is a good opportunity for suppliers of
\nlocally produced goods to increase sales, but they need to
\nimprove the quality of their goods,\" Steve said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/retailers-face-unpredictable-future-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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