Dutch Ahold takes 1st step into Indonesia

Dutch Ahold takes 1st step into Indonesia

ZAANDAM, Netherlands (Reuter): Dutch supermarkets group Ahold
took its first step into the Indonesian market on Thursday, and
announced the opening of its Asia Pacific regional headquarters
in Singapore at the beginning of November.

The retailer said it had signed a deal with Indonesian
property developer PSP to set up a modern supermarket chain
across Indonesia.

The Indonesian deal marked the initial step in a long-term
plan for a strong presence in various countries in the Asian
Pacific region, it added.

Ahold, which owns the largest supermarket chain in the
Netherlands, said the Singapore headquarters would "serve as a
regional base for current and future ventures to bring
supermarket knowledge and experience to Asian countries."

No financial details of the deal were given.

Ahold, which owns six retail chains in the United States and
also operates in Portugal, the Czech Republic and Poland, made a
net profit of 222.1 million guilders (US$138.1 million) in the
first half of 1995.

Commenting on the Indonesian supermarket venture, PSP's
president Trijono Gondokusumo said: "The technical agreement and
the retail and distribution expertise Ahold is going to provide
are very important to becoming a leading modern supermarket
operator in Indonesia."

PSP is a public quoted company and is affiliated with the
Dharmala Group. It has annual sales of around $1.7 billion and
operates in real estate, construction and retailing in Indonesia
and other countries, Ahold said in a statement.

It said the Singapore office would be headed by Henk Baakman,
the newly appointed Ahold president of Asia Pacific.

"We see Indonesia as an ideal country for significant growth
in supermarketing in the future," Edward Moerk, a member of
Ahold's executive board for development, said in the statement.

"Consumers there are ready for attractive stores and advances
in retailing," he added.