Retail chain Indomart denies monopoly charges
JAKARTA (JP): PT Indomarco Prismatama denied accusations on Wednesday that its retail chain Indomart was operating a monopoly by only selling items produced by its parent company PT Indofood.
Operational director Yoseph Setiawan Edy said that Indofood supplied about 11 percent of all the products sold in Indomart outlets.
He said that other food producers also supplied significant amounts of merchandise. PT Nestle Distribution Indonesia and PT Unilever Indonesia each provide 7 percent; PT Sayap Mas Utama, PT Tesori Mulia and PT Tiga Raksa Satria (4 percent each); PT Nusa Pro Telemedia Persada (3 percent); and PT Nirwana Lestari, PT Artha Boga Cemerlang and PT Pangan Harum Citarasa (2 percent each).
"The remaining 54 percent of the supplies come from more than 400 companies," he said.
Indomarco Prismatama is one of the first companies to be investigated by the Business Competition Supervisory Commission (KPPU), which was established in June to oversee the implementation of a 1999 antimonopoly and unfair competition law.
The commission said it had received complaints that Indomart was only selling Indofood products, such as the company's instant noodle brands Indomie, Sarimie and Supermie; Sunrise cooking oil; and Indomilk cow's milk.
The commission said it was also looking into allegations that Indomart outlets were killing small businesses trading in their vicinity.
Yoseph said there was a regulation banning supermarkets from operating within a 200-meter radius of traditional markets.
"The regulation does not apply to small retail outlets like ours," he said.
The first Indomart shop was opened in November 1988 and the company now boasts 449 outlets in Jakarta, Tangerang, Bandung and Surabaya. Of these, 335 are managed by Indomarco. The other 114 are franchise operations.
Indomarco Prismatama is 51 percent owned by PT Holdiko Perkasa and 49 percent by PT Indomarco Perdana.
Indomart's sales reached Rp 490 billion (US$57.6 million) in the first six months of 2000.
Yoseph said sales were expected to reach Rp 800 billion in 2000, up from Rp 606 billion in 1999. (02)