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.