New mart woos shoppers to city center

New mart woos shoppers to city center

JAKARTA (JP): Customers have begun to flock to the second
outlet of the French supermarket chain Carrefour, which recently
opened in the Duta Merlin shopping complex in Central Jakarta.

Carrefour Indonesia's management invited reporters on
Wednesday to tour the new outlet and get a first-hand look at the
enthusiasm with which Jakartans have greeted the 5,500-square
meter outlet, officially opened by Deputy Governor for Economic
and Financial Affairs Fauzie Alvi Yasin on Tuesday.

Carrefour Indonesia development manager Handy Lim said the
company had demonstrated rapid growth in its less than twenty
years of existence.

"In 1982, we only had 112 outlets in four countries, but as of
July 1999 that number rose to 380 in 20 countries," he said.

Carrefour Indonesia is a joint venture between Carrefour NBV
and PT Tiga Raksa Satria. Their first outlet stands on a 6,200-
square meter plot of land in Cempaka Putih subdistrict, Central
Jakarta.

The new store, which was opened with a total investment of
US$6.5 million, has a 10-year contract for its site in Duta
Merlin.

Handy declined to say how much the company was paying in rent.
"One thing for sure is that the total investment covers the
rental fee and all expenditures for building renovations."

He dismissed allegations that Carrefour and another French
hypermarket, Continent, were dumping their goods in an effort to
drive out the competition.

"It's not true. The fact is that suppliers give us discounts
because we purchase large amounts of their merchandise.

"Similarly, we give our customers discounts on the same
merchandise," he said.

Association of Indonesian Retailers chairman Kustarjono
Prodjolalito questioned the city administration's policy of
allowing foreign outlets to operate in the center of the capital.

"We have told the administration and the Ministry of Home
Affairs about the need for a zoning policy, so big retailers will
not destroy smaller ones.

"We have even talked to Deputy Governor Fauzie Alvi Yasin, who
promised us that a special team would be established to study the
matter. But there is no news about it so far," he said.

He said in developed countries hypermarkets were located in
the suburbs to help prevent traffic congestion in city centers.
(ind)