Interested in Owning an Alfamart? Here Are the Costs and Break-Even Point by 2026
Jakarta, CNBC Indonesia - The minimarket business is quite enticing as it sells various household necessities, especially if the minimarket has a name familiar to the public, such as Alfamart, which has a very wide distribution across Indonesia. It turns out that anyone can own one because Alfamart is a franchise business. If you want to become an Alfamart entrepreneur, read the following information.
There are at least three types of Alfamart franchise partnerships, as reported on the company’s official website.
- New Store Franchise
This partnership involves opening a new Alfamart based on a location proposed by the prospective Alfamart franchisee. The stages for opening a new Alfamart franchise include:
Initial presentation
Location evaluation and approval
Proposal presentation
Partnership agreement
Store opening
Alfamart also provides shelf type options tailored to the capital amount and building size owned by the prospective franchisee.
9-shelf store type (30 m2): Rp300 million
18-shelf store type (60 m2): Rp350 million
36-shelf store type (80 m2): Rp450 million
45-shelf store type (100 m2): Rp500 million
This capital already includes:
Franchise Fee of Rp45 million for 5 years
Electrical installation
Store equipment and air conditioner
Cash register and retail information system
Shop sign and pole sign
Store permits
Promotion and store opening preparation
Please note that the estimated investment value excludes property investment and may change according to conditions during the store opening process.
- New Store Franchise - Conversion
This partnership offers a franchise to owners of local minimarkets or grocery stores who want to grow their business further. Alfamart provides two conveniences for store owners who take this programme:
Recognition of the local minimarket or grocery store’s merchandise as stock for the opening of the Alfamart franchise store
Shelves owned by the local minimarket or grocery store can be used and recognised as a reduction in investment costs (shelf criteria must comply with Alfamart store shelf standards)
The stages in this partnership include:
Initial presentation
Stock opname 1
Partnership agreement
Stock opname 2
Conversion store opening
- Take Over Store Franchise
The final partnership is purchasing an already operating Alfamart store at a predetermined ‘package’ price. The capital amount for the take over franchise type varies, starting from Rp800 million.
This capital amount includes:
Franchise fee of Rp45 million for 5 years
Location rent for 5 years
Store equipment and air conditioner (AC)
Cash register and retail information system
Shop sign and pole sign
Store agreement
Goodwill
The stages in the take over store franchise partnership are:
Initial presentation
Purchase agreement
Permit transfer
Partnership agreement
Take over
Alfamart Royalty Fees
Partners who open an Alfamart store will be charged a royalty. This fee is calculated progressively from the net sales of the respective store and excludes tax.
Net sales Rp0 to Rp150,000,000: 0% royalty
Net sales Rp150,000,001 to Rp175,000,000: 1% royalty
Net sales Rp175,000,001 to Rp200,000,000: 2% royalty
Net sales Rp200,000,001 to Rp250,000,000: 3% royalty
Net sales above Rp250,000,001: 4% royalty
Requirements for Opening an Alfamart Store
Anyone can open an Alfamart store through a franchise partnership. However, there are several requirements that must be met:
Have an interest in the minimarket industry
Indonesian citizen with a Business Entity (CV, PT, Cooperative, or Foundation)
Already have or will have a business location with a minimum sales area of 100 m2 (excluding warehouse and administration space). Total land area approximately 150 m2 to 250 m2.
Meet licensing requirements such as Neighbour Permit, Domicile Permit, SIUP, TDP/NIB, NPWP, NPPKP, STPW, IUTM (varies by region).
Willing to follow the systems and procedures applicable at Alfamart.
These are the requirements and capital needed to open an Alfamart store under various franchise models.