Salim group quits PT Gelael

Salim group quits PT Gelael

JAKARTA (JP): PT Gelael Supermarket, the domestic grocery
store pioneer, announced yesterday that the Salim Group had
pulled out of the company.

Gelael's president, Dick Gelael, said his company and Salim
Group had agreed to end their cooperation on March 31 this year
and split their holding in the country's 18 Gelael stores.

"Salim Group and Gelael each got nine stores, but the Salim
Group cannot operate the stores under the name Gelael," Dick said
after signing a document creating Gelael's new joint venture with
Bakrie Goro Land.

He did not say what caused the split. He said such things were
bound to happen in business

Salim Group is a powerful conglomerate, with giant
subsidiaries including Indofood and Indocement.

Gelael now owns nine outlets in Jakarta, Surabaya (East Java),
Semarang (Central Java), Pekanbaru (Riau) on Batam island and in
other cities. Its has Rp 10 billion (US$4.11 million) worth of
assets after the split.

Expansion

Gelael will pursue retail growth in partnership with Bakrie
Goro Land, a joint venture of Bakrie Group and PT Goro Batara
Sakti.

The companies signed an agreement yesterday to form Gelael
Batara Bakrie. The joint venture will operate Gelael
supermarkets.

Bakrie Goro Land will own 60 percent stake of Gelael Batara
Bakrie and Gelael will own 40 percent.

Nirwan Bakrie of the Bakrie Group said Bakrie Goro Land would
provide the land and infrastructure for Gelael's new outlets.

Bakrie Goro Land would not take part in the management of the
company, nor would it supply the goods to be sold in Gelael,
Nirwan said.

He said his company had invested Rp 15 billion as equity for
the joint venture.

Dick said Gelael was now studying locations for new outlets,
and that he expected Gelael to operate about 40 outlets by the
year 2000.

"The cooperation with Bakrie will help Gelael expand its
business again," he said.

Bakrie Goro Land is 51 percent owned by Bakrie's property
subsidiary, Elang Realty, which has been renamed PT Bakrie Land
Development.

PT Batara Sakti, which operates Goro wholesale centers, owns
the remaining 49 percent. (das)