Council questions authorities' license to Carrefour
JAKARTA (JP): The city council questioned on Wednesday the city administration's decision to grant licenses to the giant Carrefour hypermarket chain.
Chairman of Commission B for economic affairs at the city council Syarief Zulkarnaen Ginting said the presence of the French chain, now numbering seven outlets in strategic locations across the city, posed a major threat to small retailers.
Rather than questioning related agencies at the administration, he and his colleagues from the commission would make an "impromptu visit" to the new Carrefour outlet on Jl. MT Haryono in South Jakarta next Tuesday for further clarification about the matter.
Syarief did not say why he had chosen to disclose the date of the visit to the press.
According to the commission, he said, hypermarkets were not allowed to operate in the center of the capital, but only on its outskirts.
The Association of Indonesian Retailers imposed retail zone restrictions in 1999.
However, Carrefour has been permitted by the city administration to open outlets.
Moreover, Carrefour should have obtained a license as a wholesaler, not a retailer, the United Development Party councillor said.
"The hypermarket should have a license to sell basic goods at wholesale not retail prices.
"They offer these goods at wholesale prices which threatens the survival of small retailers and traditional markets here," Syarief said.
The city council, he said, had received several complaints from small retailers about declining revenues due to the presence of Carrefour outlets in the past two years.
"Many other hypermarkets sell basic goods in bigger quantities and not at retail prices. So it is weird if Carrefour can offer these items at retail prices," he added.
Carrefour representatives were unavailable for comment on Wednesday.
A legal management staffer told The Jakarta Post that he was willing to explain but had no authority to deal with the media.
He then referred the matter to Trijono Prijosoesilo from the business development division of the company.
But Trijono could not be reached until late Wednesday.
Carrefour opened its first outlet in Cempaka Putih, Central Jakarta, in 1998, just a few months after its rival, Continent, also from France, inaugurated its first outlet on the main thoroughfare of Jl. Rasuna Said.
In 1999 the two hypermarkets merged. In Indonesia the company is jointly managed by PT Contimas Utama Indonesia, PT Carti Satria Megaswalayan and PT Cartisa property Indonesia.
The new Carrefour currently operates seven outlets in Jakarta, including those at Duta Merlin business complex in Harmoni, Cempaka Mas business district, both in Central Jakarta, Ratu Plaza shopping center in South Jakarta and Pluit Megamall in North Jakarta.
Syarief said his commission would also seek clarification about the use of the land at Carrefour outlet on Jl. MT Haryono, which actually belonged to the Indonesian Air Force and was not to be used for business purposes.
"We are the representatives of the people and the public are threatened by the presence of these hypermarkets. Even if the government has already provided them with licenses, we should ask for further clarification if they are causing losses to the public," said the councillor.
"We really want more foreign investors to come to the city but not in a way that jeopardizes the survival of local small entrepreneurs and traditional markets," Syarief remarked. (dja)