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.

 

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Strong consolidation needed to face global economic turbulence Reporter: Agus Salim 3 hours ago President Joko Widodo (Jokowi) addressing at a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) on Monday night. (Agus Salim) Jakarta (ANTARA News) - President Joko Widodo (Jokowi) reminded the country`s fiscal and monetary authorities and the business of the need for strong coordination and consolidation to face the global economic uncertainties. "Uncertainties in the global condition, trade war between the United States and China, increase in interest rate, crisis in Argentina and Turkey, would necessitate strong consolidation and coordination between the monetary and fiscal authorities and the business sector," Jokowi said addressing a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) here on Monday night. He said good coordination and consolidation would make it easier to develop the public and market confidence. "It is the same as in developing a corporation. Trust brand is vital. The state needs that. Building up trust and market confidence that the international communities, domestic market believe that we are working seriously to settle state problems," he said. He said Indonesia is a big country with a population of 263 million, the fourth largest in the world, having 17,000 islands and made up of 34 provinces. "It is not easy to manage such big country . Each area has own cases, and requirement different from each other," he added. He said developing Indonesia concerns not only economic and political aspects. "If we are concerned only with economic and political gains we need only to focus on development of Java, which is home to 60 percent of the country`s population, but we think of a nation. We are concerned not only with expanding business empire leaving Papua, North Maluku, NTT and other eastern Indonesian regions to suffer in backwardness," he said. Currently imbalance is still wide in infrastructure between the country`s western, central and eastern regions, he said, adding Indonesia is seeking to catch up with other countries. He cited three years earlier, Indonesia had only 231 water reservoirs and dams as against 6,000 dams in the United States and 110,000 dams in China. "This is fact that has to be presented and we have to do something about it," he said. He also spoke about progress made in the construction of toll roads saying after the Jagorawi toll road was operational until early 2015, Indonesia had only 780 km of toll road as against China`s toll roads totaling 280,000 km. "We need to know the condition we are in before we start working hard to make up for the gap especially in eastern Indonesia," he said. Reporting by Agus Salim Editing by Albert Saragih Editor: Bustanuddin COPYRIGHT © ANTARA 2018 AddThis Sharing Buttons Share to FacebookShare to TwitterShare to Google+Share to WhatsAppShare to LINEShare to PinterestShare to GmailShare to EmailShare to More Prev News Indonesia calls for reconciliation and justice for peace Next News Puan attends UN meeting on world peace Comments
President Joko Widodo (Jokowi) reminded the country`s fiscal and monetary authorities and the business of the need for strong coordination and consolidation to face the global economic uncertainties.
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