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.