Reopening of burned stores boosts optimism

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)