Aprindo wants list of areas of operation

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)