Ramayana to open 20 new outlets

Ramayana to open 20 new outlets

JAKARTA: Indonesian retailer PT Ramayana Lestari Sentosa plans to open 20 new outlets in 2005 and 2006 in an effort to boost sales, an official with the company said on Thursday.

"This year only we will provide about Rp 350 billion to finance the development and the opening of the stores," Koh Boon Kim, a commissioner with Ramayana, said.

He added that the company would use its own internal cash to finance the investment.

Ramayana expects 2005 net profit to increase by 9.6 percent to Rp 342 billion (US$34.37 million) from Rp 312 billion in 2004 due to an increase in sales.

Sales are expected to increase by 11 percent to Rp 4.2 trillion from Rp 3.8 trillion in 2004.

Ramayana currently has 90 stores, which serve Indonesia's smaller towns and outer islands, especially in Kalimantan and Sumatra, where rising incomes from some crops and coal mining have created new consumers. Ramayana has one-third of its nationwide network outside Java. -- Dow Jones