Indonesia’s retail attractiveness rank jumps significantly

07 June, 2016 | Source: The Jakarta Post

Indonesia has significantly improved its position in the Global Retail Development Index by leaping from 12th position in 2015 to a new high fifth position. China and India are still the countries with the most attractive retail business taking first and second, followed by Malaysia and Kazakhstan.

The consulting firm AT Kearney created the index in 2001 to measure the attractiveness of the retail sector in developing countries. It includes three main criteria namely population, country risk, and time pressure.

AT Kearney partner Hana Ben-Shabat said Indonesia’s recent policies of loosening barriers in the retail sector including e-commerce and foreign investment were regarded as positive to investors amid the negative growth average of 2.3 percent in the last three years.

"Local and international retailers are speeding up expansion plans," she said on Monday in Jakarta, citing Indomaret, which planned to open 1,600 stores after the 1,560 new stores last year and United Arab Emirates′ Lulu that would invest US$500 million over the next five years.

As market saturation would increase, Hana continued, existing retailers were experimenting to capture the niche market.

Matahari Putraprima has launched a premium supermarket Foodmart Primo in June 2015, while Transmart Carrefour has expanded to restaurants, retail chains and entertainment.

With the increasing usage and number of smartphones, retailers are boosting up their e-commerce. Happy Fresh has recently acquired $12 million to fund its e-commerce expansion, while Alfamart has rebranded its alfaonline.com into alfacart.com by including third-party products.

More recently, Korea and Japan-based retailer Lotte Group and Indonesia’s Salim Group have announced that they will create a joint-venture to develop an e-commerce and logistics system. Salim and Lotte would hold a 50-50 share of the platform.

"Now, Indonesians youngsters are paying less [physical] visit to retail shops. We need to catch on with this new trend," Salim Group chairman Anthoni Salim told thejakartapost.com on Friday.

 

Indonesia`s economy has grown 5.27 percent year-on-year in the second quarter of 2018, slightly higher by 0.26 percent than the same period last year, according to the Central Bureau of Statistic.
President Joko Widodo (Jokowi) has lauded the Law and Order Index placing Indonesia among the top ten safest countries in the world.
The consumers` confidence in the country`s economy increased in the second quarter of 2018 as reflected in the higher consumer confidence index (IKK) by the end of June 2018 and stronger expectation of consumers for a number of economic indicators by the end of the year, a survey shows.
https://en.antaranews.com/news/116508/indonesia-thailand-seek-to-improve-bilateral-ties-during-9th-jcm
The highly awaited international sporting event of Asian Games is expected to achieve great success through support from various parties, including a number of state-owned enterprises, telecommunications companies, national, and international companies.
Indonesian Foreign Minister Retno Marsudi met with her Dutch counterpart Stephanus Abraham Blok and discussed efforts to increase economic cooperation between both countries.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu