Makro opens new store in Palembang

Makro opens new store in Palembang

Arief Suhardiman/Dewi Santoso, The Jakarta Post,
Palembang/Jakarta

Wholesaler chain PT Makro Indonesia opened on Tuesday a store
in Palembang, South Sumatra, its 14th in the country, and pledged
to open more stores this and next year.

"Despite recent reports of the relocation or suspension of
operations of several companies, we would like to reiterate that
we will stay and expand our operation," company president Simon
Collins said in Palembang.

Officially opened by South Sumatra Governor Syahrial Oesman,
the store in Palembang occupies 5,350 square meters of sales
floor and has over 15,000 articles on sale. Construction of the
store cost between US$2.7 and $3 million, excluding the land.

Palembang is the second largest city in Sumatra after Medan,
where Makro already has a store.

Collins said his company planned to open more stores this
year, one of which would be located in Pekanbaru, Riau. He did
not provide a specific timetable for the new stores.

"This expansion drive reflects the company's confidence in
Indonesia's long-term economic growth," he said.

Established in 1992, Makro Indonesia is 83 percent owned by
Dutch company Steijnkool Handel Vereniging (SHV) Holdings NV,
with the remaining 17 percent held by local companies.

The firm dominated the country's hypermarket sector until the
late 1990s, when new competitors such as Carrefour arrived in
Indonesia.

Collins played down the impact of these new competitors on
Makro's business here, saying the company virtually had no direct
competitors.

"We don't target end users. We sell products to retailers for
resale purpose. Makro is a high volume, low price, no frills
cash-and-carry wholesaler selling to registered, professional
customers such as retailers, traders, caterers and professionals
in the service sector," said Collins.

Collins reiterated the firm's commitment to joining forces and
growing together with the country's small and medium-scale
enterprises (SME).

"Through their cooperation with Makro, local SMEs can cut down
on their distribution and networking costs," he said.