Seibu department store opened

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)