McDonald's closes 20 outlets

JAKARTA (JP): McDonald's Indonesia has temporarily closed 20 of its 101 outlets nationwide due to the economic crisis and the recent widespread riots.

Company president Bambang H. Rachmadi said over the weekend the crisis had resulted in the declining purchasing power of local consumers and the rupiah's sharp depreciation tripled prices of its imported raw materials.

Six of its outlets were destroyed in massive riots which hit the country in May.

"We have had to temporarily close those outlets otherwise we will suffer a greater loss. We will open those outlets again if the economic condition recovers," Bambang said.

He declined to reveal the amount of the losses.

Bambang said McDonald's had raised the prices of its products between 10 percent and 15 percent to adjust to the increase in imported raw materials. (gis)