Indonesian retailer PT Matahari Putra Prima plans to expand its operations into the country’s east, following faster retail growth rates outside Java.
Retail growth in eastern Indonesia was around 11 per cent last year, compared to a national average of 8.5 per cent, Matahari’s corporate communication head Danny Konjongian told the Jakarta Post.
“We are seeing growing purchasing power in the eastern parts of Indonesia,” he said, adding that only 11 per cent of Indonesia’s food retail market was held by modern formats.
Matahari runs the hypermarket chain Hypermart, and plans to open an extra 17 stores this year to add to the current 68, boosting sales by a forecast 24 per cent, the Jakarta Post report said.
Most of the new stores will be in Indonesia’s east, and Matahari’s newest store opened in Ambon in February.
“We will open our first Hypermart in Papua in June or July,” stated Konjongian.
Konjongian explained prices in the company’s stores in eastern Indonesia will be higher than those in Java, an unavoidable consequence of the extra distribution costs.
The new stores are expected to cost Matahari Rp20bn each (US$2.18m), and the company has laid aside Rp1 trillion (US$109m) for the expansion.
Matahari is the second largest food retailer in Indonesia, training market leader Carrefour.
