How Much Does It Cost to Open an Alfamart? The Latest Calculation of Required Capital
Jakarta, CNBC Indonesia - Most Indonesians are familiar with the Alfamart brand, known as a minimarket chain with extensive reach across various regions.
For those interested in partnering with Alfamart, there are several key points to understand. According to the company’s official website, it offers at least three franchise cooperation schemes.
- New Outlet Franchise
This cooperation involves opening a new Alfamart based on a location proposal from the prospective franchisee. The stages for opening a new Alfamart franchise include:
Initial presentation
Location evaluation and approval
Proposal presentation
Cooperation agreement
Store opening
Alfamart also provides options for shelf types tailored to the capital amount and building size owned by the prospective franchisee.
9-shelf outlet type (30 m²): Rp300 million
18-shelf outlet type (60 m²): Rp350 million
36-shelf outlet type (80 m²): Rp450 million
45-shelf outlet type (100 m²): Rp500 million
This capital already covers:
Franchise fee of Rp45 million for 5 years
Electrical installation
Outlet equipment and air conditioner
Cash register and retail information system
Shop sign and pole sign
Outlet permits
Promotion and store opening preparations
Note that this investment estimate excludes property investment and may vary according to conditions during the store opening process.
- New Outlet Franchise - Conversion
This cooperation offers franchising to owners of local minimarkets or grocery stores who wish to expand their business further. Alfamart provides two conveniences for store owners taking this programme:
Recognition of the local minimarket or grocery store’s merchandise as opening stock for the Alfamart franchise outlet
Use of the local minimarket or grocery store’s shelves, recognised as a reduction in investment costs (shelves must meet Alfamart outlet standards)
The stages in this cooperation begin with:
Initial presentation
Stock opname 1
Cooperation agreement
Stock opname 2
Conversion store opening
- Takeover Outlet Franchise
The final cooperation involves purchasing an already operational Alfamart outlet at a predetermined “package” price. The capital required for this type of franchise varies starting from Rp800 million.
This capital covers:
Franchise fee of Rp45 million for 5 years
Location rental for 5 years
Outlet equipment and air conditioner
Cash register and retail information system
Shop sign and pole sign
Outlet agreement
Goodwill
The stages for takeover outlet franchise cooperation are:
Initial presentation
Purchase agreement
Transfer of permits
Cooperation agreement
Takeover
Alfamart Royalty Fees
Partners opening an Alfamart outlet will be charged royalties. This fee is calculated progressively based on the net sales of the relevant outlet and does not include tax.
Net sales Rp0 to Rp150,000,000: royalty 0%
Net sales Rp150,000,001 to Rp175,000,000: royalty 1%
Net sales Rp175,000,001 to Rp200,000,000: royalty 2%
Net sales Rp200,000,001 to Rp250,000,000: royalty 3%
Net sales above Rp250,000,001: royalty 4%
Requirements for Opening an Alfamart Outlet
Anyone can open an Alfamart outlet through a franchise partnership. However, several requirements must be met, as follows:
Interest in the minimarket industry
Indonesian citizen with a Business Entity (CV, PT, Cooperative, and Foundation)
Already owns or will own a business location with a minimum sales area of 100 m² (excluding warehouse and administrative space). Total land area approximately 150 m² to 250 m².
Meets permit requirements such as Neighbour Permit, Domicile Permit, SIUP, TDP/NIB, NPWP, NPPKP, STPW, IUTM (varies by region).
Willing to follow the applicable systems and procedures at Alfamart.
These are the requirements and capital needed to open an Alfamart outlet through various franchise models.