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)