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)