Sarinah talks shop about expansion despite red tape<\/p>\n
JAKARTA (JP): Lone state-owned retail company PT Sarinah
\nplans to expand its business despite the tangled web of
\nbureaucracy and stiff competition from private retailers.<\/p>\n
Company president Yustian Ismail said on Thursday that Sarinah
\nplanned to open 35 new outlets across the country in the next
\nfive years.<\/p>\n
An outlet will open this month in Yogyakarta and another in
\nBali in September, Yustian said during a news conference held in
\nconjunction with the commemoration of Sarinah's 37th anniversary.<\/p>\n
\"Although we cannot move as fast as private retail companies
\nin developing the business, we are trying to improve our
\nmanagement so we can compete with other local or foreign retail
\ncompanies in the country,\" he said.<\/p>\n
Yustian acknowledged that differences in vision and concept
\nbetween the government as the owner and the board of directors
\nwho operated the retailer chain worked to hamper the company's
\ndevelopment.<\/p>\n
The company, which is under the State Minister of the
\nEmpowerment of State Enterprises, has encountered red tape in its
\ndealings with the minister's office, he added.<\/p>\n
However, Yustian said that reform measures introduced last
\nyear contributed to making the company more independent.<\/p>\n
\"Prior to the reforms, the board of management was asked to
\ndevelop the company, but they were not supported by the
\ngovernment.<\/p>\n
\"It's just like asking them to run while their feet are
\nchained.\"<\/p>\n
Operational director Imanu Widodo estimated that about 60
\npercent of the company's prospective buyers were foreigners.<\/p>\n
The company's plan to open more outlets outside of the
\ncountry's economic center of Jakarta is based on predictions for
\nmore autonomous and prosperous provinces in the future.<\/p>\n
It is also considering opening outlets overseas, such as one
\nin New York, but Yustian said there were risks involved. \"We have
\nto be very cautious before implementing the plan.\"<\/p>\n
Sarinah, located on Jl. M.H. Thamrin, Central Jakarta, holds
\nsignificance as the country's first department store. Indonesia's
\nfirst president Sukarno, who proposed the idea for the store,
\nopened it in 1962.<\/p>\n
The company's promotional efforts have included cooperation
\nwith McDonald's and Hard Rock Cafe, which have operated
\nrestaurants at the Thamrin site since 1992. The cooperation has
\nsuccessfully boosted the number of visitors by more than 200
\npercent.<\/p>\n
In conjunction with its anniversary, the department store is
\nawarding about 300 scholarships to students at six state schools
\nin the neighborhood. It also conducted employee blood drives.
\n(04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sarinah-talks-shop-about-expansion-despite-red-tape-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}