Matahari to open outlets in six regencies

Matahari to open outlets in six regencies

JAKARTA (JP): PT Matahari Putra Prima, one of the country's
largest retailers, hopes to open outlets in six regencies despite
the government's plan to restrict the operations of big retailers
in regencies.

Matahari's managing director, Hanifah Komala, said over the
weekend the new outlets would be in Depok, Cilegon, Bogor,
Pekalongan, Cianjur and Sukabumi in West Java.

Hanifah said the government's plan to restrict the operations
of big retailers in regencies would not affect the outlets
because they be operated in cooperation with small businesses.

"We cooperate with small-scale retailers in all our outlets,
so the government's plan will not affect our business operating
plans," he was quoted by Antara as saying.

Matahari, listed on the Jakarta Stock Exchange, has 81 outlets
across the country, 33 are in regencies.

President Soeharto has instructed the Ministry of Industry and
Trade, the Ministry of Home Affairs and the Investment
Coordinating Board to issue a regulation limiting the operations
of big retailers in regencies.

The proposed regulation, which is expected to be issued in two
months, will limit the operations of large retailers in regencies
unless they cooperate with local cooperatives or small
businesses.

The Association of Indonesian Retailers asked the government
last week to consider the differing wealth of regency towns when
restricting big retailers.

The association's chairman, Kustarjono Prodjolalito, said the
government should clearly define which regency towns were out of
bonds to big retailers.

According to the association, the country has 112 big retail
companies, of which about 100 have stores in regencies.

The 112 companies have about 65 percent of total domestic
retail turnover.

The companies' turnover was about Rp 7 trillion (US$2.87
million) last year, up 80 percent on 1995, according to the
association.

Matahari's president Hari Dharmawan said yesterday his company
aimed to generate a Rp 91 billion net profit and Rp 2.3 trillion
in sales this year.

Net profit was projected to increase to Rp 121 billion next
year while sales would be around Rp 2.9 trillion. (das)