Indomaret's existence questioned

Indomaret's existence questioned

JAKARTA (JP): The city administration has questioned the
existence of "Indomaret" minimarkets due to their inappropriate
locations, as they are mostly found in housing complexes.

Head of the City Economy Development Office, Dameria Saragih,
said on Thursday that her officials, along with the other
agencies which had issued the necessary permits for the
minimarkets, were evaluating the case.

"If we find any violations of the regulations, we will close
them down," said Dameria on the sidelines of a City Council
plenary session on the establishment of subdistrict councils.

Currently, most Indomaret minimarkets are managed through a
franchise scheme by residents in housing complexes. There have
been 269 Indomaret outlets opened in Jakarta and 227 others in
Surabaya, East Java, and Bandung, West Java, since 1988.

Each outlet, with an average width of between 60 and 200
square meters, supplies communities with basic needs from 10 a.m.
to 10 p.m. everyday.

However, there has been speculation that most of them have yet
to obtain a building utilization permit (IPB), authorizing a
change of use from a residence to a commercial premises.

"I will also check on Indomaret's building permits with the
City Development Supervisory Agency, which should have issued the
necessary permits," Dameria said.

Separately, city councilor Sambudi Bakri of the National
Mandate Party (PAN) said that the Indomaret minimarkets could
spell the death knell for traditional markets and small-scale
businesses in housing complexes.

"It indicates a monopoly which must be eliminated," Sambudi
said.

He said the city council would summon the Indomaret franchise
holder, PT Indomarco Prismatama, next week.

He also questioned the principal licenses required to operate
the businesses and their expansion permits, which must be renewed
every five years.

Gubernatorial Decree No. 50 of 1999 stipulates that every
privately run market measuring less than 200 square meters must
obtain a basic license from the City Secretary.

Furthermore, the minimarket must obtain a business permit from
the Jakarta office of the Ministry of Industry and Trade, and a
security permit from the City Public Order office.

Contacted separately, Indah Suksmaningsih of the Indonesian
Consumers' Foundation (YLKI) said that retail outlets like
minimarkets have attracted customers due to ease of access, a
greater choice of products and relatively cheaper prices.

Air-conditioned premises, fixed prices and better services
have given minimarkets their own place in the life of Jakartans
who are too busy to go to nearby traditional markets early in the
morning.

"However, there is a tradition in our society to bargain and
to purchase (in traditional markets) specific items that can't be
found in minimarkets, such as fresh vegetables and spices," Indah
said. (07)