Aprindo wants list of areas of operation

JAKARTA (JP): The Indonesian Retailers Association (Aprindo) has called on the government to issue a list of regency towns which are open for big retail operations.

Association chairman Steve Sondakh said early last week that a list stating which towns were open or closed to retailers was needed so that retailers could plan their business expansion programs.

The Ministry of Industry and Trade issued a decree on Oct. 31 on the supervision and regulation of marketplace and shopping centers throughout the country.

The new rules limit the operations of big retailers in regency towns.

"The absence of a list makes it difficult for big retailers to form expansion plans," Steve said.

Steve said the Ministry of Industry and Trade's decree was issued to implement a joint decree signed last May by Minister of Industry and Trade Tunky Ariwibowo and Minister of Home Affairs Moch. Yogie S. Memet to restrict the operations of big retailers outside provincial towns.

The government wanted to restrict big retail operations to make room for traditional markets to develop.

Traditional markets are losing due to competition from modern retailers such as malls, department stores, shopping centers and supermarkets in big towns, and the government fears that big retailers will continue by dominating the retail business in the regency towns.

The joint decree states that big retail businesses, with special licenses from the ministers, can open outlets in regency towns with very fast economic growth on the condition that they help develop traditional markets and small traders through partnerships.

The association's data says more than 100 big retail outlets operate in regency towns.

Steve said the association had also called on the government to make a clear differentiation between wholesalers and retailers.

He said wholesalers like Makro, Goro and Alfa also conducted retail activities.

Because of this, he said, the government should put wholesalers in the same category as the retailers and impose a similar regulation on them.

The Ministry of Industry and Trade decree puts all modern retailers in the category of modern market to differentiate them from traditional markets.

The decree does not put modern wholesalers like Makro, Goro and Alfa in both categories nor does it make a special category for them.

Steve also regretted that the government did not involve the association in the drafting of the regulation.

"It's we who know most about this business. Why were we not asked to be involved in drafting the regulation?" he asked. (jsk)