Law to protect domestic retailers called for

JAKARTA (JP): The Indonesian Retail Merchants Association (Aprindo) called on the government yesterday to introduce a law to protect domestic retailers from foreign competitors and unfair rivalry among local players

"Today, each province has its own local regulation on the retail business. What we urgently need now is a national law to regulate the business, which has been growing rapidly over the past several years following the entrance of international chains," the association's Secretary-General, Suryadharma Ali, told a press conference.

The government prohibits foreign direct investment in the retail business. However, a number of foreign retail chains have entered Indonesia through technical assistance or franchise arrangements in anticipation that this sector might be opened after 2000.

Suryadharma said domestic retailers assume that the foreign franchisers, besides giving technical assistance, also invest in their franchisees.

"Our feelings are troubled when the big-budget international chains also put their money in the franchisees," he said. "That's why we repeatedly call on the government to supervise the franchisees' activities."

He also said that at least seven international department store chains have been operating in Indonesia through technical agreements and several others are going to come in.

The coming of the giant chains have caused jitters among domestic retailers, as has been highlighted in the current dispute between the Mega M and Walmart stores, both located in Tangerang, West Java.

Mega M has accused Walmart of dumping practices, so that the former lost its costumers. The case is now under investigation by the Ministry of Industry and Trade, the association's Chairman, H.E. Dachlan, said yesterday.

Congress

Kustarjono Prodjolalito, the association's executive director, said the association is scheduled to hold its first national congress, a seminar on the retail business and an exhibition of local products and retail equipment, from Nov. 1 to Nov. 3 at the Jakarta Fair grounds.

The seminar, titled "To Consolidate Indonesian Retailers in the Anticipation of the Free Trade Era", will present various speakers, including Minister of Industry and Trade Tunky Ariwibowo, who will discuss regulations on retailers, and Minister of Manpower Abdul Latief, who will discuss human resources development in the retail sector in anticipation of globalization.

Economist Christianto Wibisono will talk about retail business opportunities in Indonesia and Antony Coot, chairman of the Australian Retailers Association, will speak about the constellation of retail business power in Asia.

Aprindo, which was accepted as a member of the Federation of Asian Retailers Association in its meeting on Sept. 25. in Adelaide, Australia, currently has 184 members in eight provinces.

Aprindo was established as a rival to the Indonesian Retailers Association (AP3I) in 1994 by some former members of the latter group, following a dispute over an election of a new chairman. Aprindo has now replaced AP3I in membership of the Federation of Asian Retailers Association. (jsk)