Indonesian Political, Business & Finance News

Indomaret and Alfamart Staff Could Become Obsolete, Replacements Emerge from China

| Source: CNBC Translated from Indonesian | Technology
Indomaret and Alfamart Staff Could Become Obsolete, Replacements Emerge from China
Image: CNBC

A new store named Ro-bodega has officially opened in the Hung Hom waterfront area of Hong Kong, drawing the attention of the global retail industry. What makes it special? The store has no human employees at all. All operations, from stocking shelves and picking items to processing payments, are handled entirely by a single humanoid robot named Xiao Gai.

Created by Galbot, a Beijing-based artificial intelligence and robotics company, Xiao Gai stands 1.67 metres tall with an arm span of 1.8 metres. The robot is not only capable of performing physical tasks but can also communicate in a friendly manner and speak multiple languages. The product range is comprehensive, including snacks, beverages, and over-the-counter medicines, much like what one would find in Indomaret, Alfamart, and other retail chains in Indonesia.

The project, supported by the Hong Kong Investment Corporation, is being hailed as tangible proof that AI has entered daily life. Galbot projects that the novelty and appeal of the store could increase visitor numbers to the area by up to 40 percent. The company does not plan to stop at one location; it intends to launch 100 similar robot-managed capsule stores in ten other major cities. Galbot previously opened a comparable store in a busy area of Beijing, the Summer Palace.

This development serves as a stark signal for Indonesia’s retail industry. If the technology continues to advance and implementation costs become more affordable, it is not unlikely that a similar concept will soon enter the Indonesian market. This means the positions of store employees, currently filled by humans, could gradually be replaced by machines.

However, the adoption of this technology is not without risks and challenges. In Japan, for instance, Japan Airlines has just begun testing baggage-handling robots at Haneda Airport, demonstrating that automation is spreading across various sectors. Yet, there are also examples of failure. Earlier this year, a viral video showed a restaurant service robot suddenly going out of control and throwing cutlery everywhere. In Stockholm, an AI agent tasked with managing a coffee shop spent most of its budget in less than a month, making fatal errors such as ordering 3,000 pairs of unnecessary rubber gloves.

Despite these setbacks, technological progress cannot be halted. For thousands of Indomaret and Alfamart employees, the threat of unemployment is no longer just an issue but a real possibility, with replacements already emerging everywhere.

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