Reopening of burned stores boosts optimism

JAKARTA (JP): PT Ramayana Lestari Sentosa Tbk, a large retail chain company with stores throughout Indonesia, reopened on Saturday two of its five department stores that were looted, damaged and burned during the May riots last year.

The stores are in Tanjung Priok, North Jakarta, and Cimone, Tangerang.

The reopening of the two stores follows a the resumption of business by other retail chains.

It is a sign that there is optimism in the business community that the city's economic recovery is approaching.

"A relatively stable political situation has encouraged us to reopen our two stores," Setyadi Surya, Ramayana's director for human resources and public relations, said on the sidelines of the reopening of the Ramayana store in Tanjung Priok on Saturday.

He said he was glad there were no major violence during and after the June 7 general election.

Setyadi said his company also plans to reopen the other three damaged stores in Pasar Minggu, Ciputat and Cengkareng. The company will also build a new store in Krian, East Java, he said.

Asked about the possibility of more unrest in the future, Setyadi explained that his company had conducted several projects to help improve welfare among poor people near the stores. The activities, including donating money for the construction of places of worship, were aimed at preventing the stores being targeted if riots break out.

Setyadi said his company was ready to cooperate with local small businesses, but added they were waiting for instructions on the implementation of projects from the local government.

"It's up to the government to set a cooperation scheme on a win-win basis. We will obey it," said Setyadi.

The three-story Ramayana store in Tanjung Priok employs about 400 workers. The company operates 53 stores throughout Java, Bali and Batam.

Retail battle

Meanwhile, the spokesman of the Indonesian Retail Merchants Association (Aprindo), Alan Kamal, said the association would submit a proposal to the Ministry of Trade and Industry and the Ministry of Home Affairs on the role of retail business operations.

"We urge the two ministries to prohibit dumping practices," said Alan, who attended the reopening of Ramayana's Tanjung Priok store.

He said Aprindo members have complained that their store chains suffered significant losses due to the presence of foreign retail chains here.

"More than 50 percent of our customers fled to those hypermarkets," one of the Aprindo members was quoted by Alan as saying.

Aprindo, which was established in 1996, now has several members, including local retailers PT Matahari Putra Prima, Metro Supermarket and PT Ramayana Lestari Sentosa Tbk.

Aprindo will also ask the government not to allow the establishment of new stores near traditional markets and small business centers, Alan said.

"It is intended to protect the small businesses from tough competition with modern retail chains, whether local or foreign," he said.

Debate on the presence of foreign retail chains heated up recently after a number of local retailers accused foreign operators of selling goods at loss-making prices to grab a large share of the market.

In a response, foreign retailers, including Carrefour and Continent hypermarkets, said they were able to sell items at lower prices by trimming their profit margins. (asa)