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Interested in Owning Your Own Alfamart? Here Are the Costs and Payback by 2026

| Source: CNBC Translated from Indonesian | Business
Interested in Owning Your Own Alfamart? Here Are the Costs and Payback by 2026
Image: CNBC

The Alfamart minimarket network has become a familiar sight across many parts of Indonesia. Its wide store network makes this retail business a frequent target for prospective entrepreneurs.

Many people are attracted to owning their own Alfamart store through a franchising scheme. The business model is considered more practical because partners operate under a proven operational system.

For prospective entrepreneurs who wish to join, Alfamart offers several franchise partnership options. Each scheme carries different investment levels and management mechanisms.

Through the partnership programme, investors can open new stores, convert existing shops, or take over already operating outlets. Here are the cost details and partnership stages offered by the company.

There are at least three types of Alfamart franchise partnerships as listed on the company’s official site.

  1. Franchise for a New Store

This partnership involves opening a new Alfamart based on site proposals from the prospective Alfamart franchisee. The steps in opening a new Alfamart franchise include:

  • Initial presentation

  • Location evaluation and approval

  • Proposal presentation

  • Partnership agreement

  • Store opening

Alfamart also provides shelf configurations tailored to the capital available and the size of the building owned by the prospective franchisee.

  • 9-shelf store (30 m2) Rp300 million

  • 18-shelf store (60 m2) Rp350 million

  • 36-shelf store (80 m2) Rp450 million

  • 45-shelf store (100 m2) Rp500 million

The capital includes:

  • Franchise Fee of Rp45 million for 5 years

  • Electrical installation

  • Store fittings and air conditioning

  • Cash register and retail information system

  • Shop sign and pole sign

  • Store licensing

  • Promotion and preparations for opening the store

Note: The estimated investment excludes property investment and may change based on conditions at the time of store opening.

  1. Franchise for a New Store - Conversion

This partnership offers a franchise to owners of local minimarkets or small convenience stores who wish to expand their business further. Alfamart provides two conveniences for owners taking this programme:

  • Recognition of the store’s merchandise as stock for the opening of the Alfamart franchise store

  • The store’s existing shelving can be used and counted as a deduction of investment (shelf criteria must align with Alfamart’s shelf standards)

The steps in this partnership include:

  • Initial presentation

  • Stock opname 1

  • Partnership agreement

  • Stock opname 2

  • Opening of the conversion store

  1. Franchise Take Over

The final partnership is purchasing an Alfamart store that is already operating under a predetermined package. The capital for this take-over franchise varies from Rp 800 million.

That capital includes:

  • Franchise fee of Rp45 million for 5 years

  • Rent for 5 years

  • Store fittings and air conditioning (AC)

  • Cash register and retail information system

  • Shop sign and pole sign

  • Store agreement

  • Goodwill

The stages for the take-over franchise are:

  • Initial presentation

  • Purchase agreement

  • Transfer of permits

  • Partnership agreement

  • Take over (taking control)

Alfamart Royalty Fees

Franchise partners will be charged royalties. The fee is calculated progressively from the store’s net sales and excludes tax:

  • Net sales Rp0 to Rp150,000,000: royalty 0%

  • Net sales Rp150,000,001 to Rp175,000,000: 1%

  • Net sales Rp175,000,001 to Rp200,000,000: 2%

  • Net sales Rp200,000,001 to Rp250,000,000: 3%

  • Net sales Rp250,000,001 and above: 4%

Requirements to Open an Alfamart Store

Anyone can open an Alfamart store through a franchise partnership. However, there are several requirements:

  1. Interest in the minimarket industry

  2. Indonesian Citizen with a Business Entity (CV, PT, Cooperative, and Foundation)

  3. Already or will own a business location with a sales area of at least 100 m2 (excluding warehouse and administrative space). Total land area roughly 150 m2 to 250 m2.

  4. Fulfil licensing requirements such as Neighbour Consent, Domicile Permit, SIUP, TDP/NIB, NPWP, NPPKP, STPW, IUTM (varies by region)

  5. Willing to follow the systems and procedures applicable at Alfamart.

These are the conditions and the capital required to open an Alfamart store under various franchise models.

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