Law to protect domestic retailers called for

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)