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)