Retailer Matahari books Rp 200b in net profit

JAKARTA (JP): PT Matahari Putra Prima booked Rp 200 billion (about US$26.6 million) in net profit in 1999, a turnaround from the Rp 150 billion net loss the previous year, company president Antonius Hanafiah Komala said on Tuesday.

Hanafiah said this year's net profit was expected to reach between Rp 230 billion and Rp 250 billion on expected increase in sales.

He said after the company's extraordinary meeting that the company would set aside Rp 140 billion cash for business expansion in the current year.

Of the amount, about Rp 80 billion will be used to support outlet expansion. Some will also be used to fund the company's information technology development, he said.

The company is committed to opening at least five new outlets -- two in Jakarta, and one each in Bali, Pontianak and Surakarta -- this year.

The planned outlets will have floor space ranging from between 7,000 and 10,000 square meters, according to the company.

Matahari currently operates 74 stores nationwide, of which 24 are located in Jakarta.

Matahari claims 90 percent of its goods are domestic products supplied by small and medium-sized companies.

Matahari's honorary chairman, Hari Darmawan, earlier said that retailers would have a better year this year but they should still be careful about expansion.

"We are very sure the market will improve a lot this year, but as yet I can't predict by how much the market will expand," Hari said. (udi)