Seibu department store opened

JAKARTA (JP): Department stores operating in Indonesia under franchises from foreign retail chains have been asked to cooperate with local manufacturers to prevent excessive imports of consumer goods.

"Large-scale retail businesses which operate under international franchises are encouraged to link up with domestic producers," Coordinating Minister for Industry and Trade Hartarto said yesterday after inaugurating the Jakarta Seibu Department Store in Blok M, South Jakarta.

If this is done, he said, franchising will gradually support domestic production, even if, initially, more imported products are sold.

"If they (the franchisees) do not collaborate with domestic producers, our imports of consumer goods will surely increase," Hartarto added.

A surge in the importation of consumer goods is said to have been partly to blame for Indonesia's trade deficit for the month of June.

Hartarto said that, like the industrial and agricultural sectors, the retail business is about to enter the free trade era.

He said international franchising should help to improve the management of local retail businesses, raising sales of locally- made products and boosting tourism.

The Jakarta Seibu Department Store, owned by ALatief Corp., is operated by PT Pasaraya Nusakarya under a franchise agreement with Seiyu Ltd. of Japan.

Jakarta Seibu is located on 12,000 square meters of land, occupying four floors of the Mega Pasaraya shopping complex, which is managed by Pasaraya.

According to Usman Dja'far, president of ALatief Corp., trial operations of the department store started on Aug. 25.

Yesterday's opening ceremony was also attended by Japanese Ambassador Taizo Watanabe, Minister of Manpower (and owner of ALatief Corp.) Abdul Latief and Seiyu Senior Managing Director Sakamoto. (pwn)