Waserda Jaya, Continent sign technical agreement
JAKARTA (JP): City-owned chain store company PT Waserda Jaya signed a technical cooperation deal on Monday with PT Contimas Utama Indonesia, the Indonesian-French joint venture that manages Continent hypermarkets here.
"Contimas will provide Waserda Jaya with technical assistance on goods distribution, human resource development and store operation," said Waserda Jaya's director Djoko Brotosurjono after the signing of a memorandum of understanding between the two companies.
PT Wadserda Jaya was established last year and already runs three stores in Menteng, Central Jakarta, and Joglo and Muara Angke, both in West Jakarta.
PT Contimas Utama Indonesia, which started its operations in 1998, is 51 percent owned by the Promodes Group, a 39-year-old retail giant from France. Its remaining shares are owned by its local partner PT Sinar Kilat Buana, Sinar Mas Group's retail unit. Contimas currently operates three Continent hypermarket outlets in Cempaka Putih, Central Jakarta, Kuningan, South Jakarta and Pluit, North Jakarta.
Under the newly-signed deal, it would be possible for Waserda Jaya to expand its cooperation with Contimas, by setting up joint operations in outlets for example, Djoko said.
In an effort to further this plan, he said, the city-owned company had submitted a business plan to Contimas.
The blueprint revealed Waserda Jaya's plan to open 100 stores with an estimated daily revenue of Rp 700 million (US$100,000) from a projected 100,000 regular customers, Djoko explained.
However, he gave no details of the firm's plan.
"We have already established three stores in 1999 and will open another 30 stores in 2000," Djoko said.
Waserda Jaya's potential buyers are the 269 multi-purpose cooperatives located in each of the city's 265 subdistricts.
Djoko also suggested Contimas help Waserda Jaya seek additional funds from third parties for its operations.
In his speech, Contimas director Jean-Luc Montembault said Waserda Jaya could in return provide Contimas with consultation and information services to help it expand its business retail chain here.
"Contimas is currently developing its stores into combinations of department stores and supermarkets," he said.
"Waserda Jaya can provide information on legal and licensing procedures and existing local conditions." Jean-Luc said. (05)