Starting Your Own Alfamart: Investment Costs and Payback Timeline to 2026

Alfamart’s minimarket network operates a franchise system for anyone interested in entering the retail business. As a result, Alfamart has tens of thousands of outlets across Indonesia.

There are three primary franchise partnership models offered by Alfamart:

1. New Store Franchise

This model involves opening a new Alfamart based on a location proposed by the prospective franchisee. The process includes presentation, location evaluation and approval, proposal presentation, partnership agreement, and store opening.

Alfamart offers shelf type options tailored to capital availability and building size:

• 9-shelf outlet (30 m2): Rp 300 million

• 18-shelf outlet (60 m2): Rp 350 million

• 36-shelf outlet (80 m2): Rp 450 million

• 45-shelf outlet (100 m2): Rp 500 million

This investment includes: franchise fee of Rp 45 million for 5 years, electrical installation, store equipment and air conditioning, cash register and retail information systems, shop signage, store permits, promotion and opening preparation. Note that these figures exclude property investment and may vary depending on conditions at the time of opening.

2. New Store Franchise - Conversion

This model targets owners of local minimarkets or general stores seeking to expand. Alfamart offers two benefits: recognition of existing inventory as opening stock for the franchise outlet, and allowance for existing shelving (if meeting Alfamart standards) as a deduction from investment costs.

The process includes initial presentation, stock audit, partnership agreement, second stock audit, and store opening.

3. Take Over Franchise

This involves purchasing an already-operating Alfamart outlet at a predetermined package price, starting from Rp 800 million. This investment includes: franchise fee of Rp 45 million for 5 years, location rent for 5 years, store equipment and air conditioning, cash register and retail information systems, signage, store agreement, and goodwill.

The take-over process involves initial presentation, purchase agreement, permit transfer, partnership agreement, and takeover.

Alfamart Royalty Fees

Franchisees pay progressive royalties calculated on net store sales and excluding tax:

• Net sales Rp 0 to Rp 150 million: 0% royalty

• Net sales Rp 150.000.001 to Rp 175 million: 1% royalty

• Net sales Rp 175.000.001 to Rp 200 million: 2% royalty

• Net sales Rp 200.000.001 to Rp 250 million: 3% royalty

• Net sales Rp 250.000.001 and above: 4% royalty

Requirements for Opening an Alfamart Store

Anyone can open an Alfamart through franchising, subject to these conditions:

1. Interest in the minimarket industry

2. Indonesian citizen with registered business entity (CV, PT, cooperative, or foundation)

3. Possession or planned acquisition of premises with minimum sales area of 100 m2 (excluding warehouse and administrative space), total land approximately 150-250 m2

4. Compliance with local licensing requirements: neighbour approval, domicile permit, business licence (SIUP), registration (TDP/NIB), tax identification (NPWP), and other permits as required by local regulations

5. Willingness to follow Alfamart’s systems and procedures