Foreign wholesalers banned

Foreign wholesalers banned

JAKARTA (JP): The government has prohibited foreign
wholesalers and distributors from entering the domestic retail
market.

A decree issued by State Minister of Investment Sanyoto
Sastrowardoyo on Wednesday states that the ban came into effect
April 30, Antara reported yesterday.

The decree also rules that large foreign distributors can only
operate in Jakarta and provincial capitals.

If the wholesalers wish to set up operations in other urban
areas, they must establish partnerships with local small-scale
entrepreneurs or cooperatives, which must be entitled to at least
51 percent of the stakes.

In January, the government agreed to terms made by the
International Monetary Fund to dismantle all restrictions on
foreign wholesale and retail trade in smaller urban areas, in
exchange for a US$43 billion bailout package.

The new decree states that a wholesaler or distributor can be
established by a foreign citizen or company in partnership with
an Indonesian citizen or company.

The government also issued a decree yesterday which rules that
foreign retailers must have at least $100,000 in capital,
excluding their property assets.

Retailers are also banned from operating as a wholesaler, the
decree says. (das)