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uoyed by strong purchasing power and the growing Indonesian middle class, retail businesses reported an average sales growth of 22 percent last year.

PT eTrading Securities research analyst Andrew Argado said that growth in the retail businesses was in line with growth in per capita income.

“There is also a shift in the demography map, where productive ages above 24 years earn more than US$3,000 a year,” Andrew said.

He said that the growing number of middle and upper-middle class people benefited retailers focusing on that segment.

High-end retailer PT Mitra Adi Perkasa (MAPI) reported Rp 360.42 billion ($39 million) in net profits in 2011, a 79 percent jump from Rp 201.07 billion in 2010.

The surge in net profits was supported by growing sales of 25 percent to Rp 5.89 trillion in 2011 from Rp 4.71 trillion a year earlier.

The company, which focuses on upper middle-class consumers, said that it enjoyed equity in net income for its 40 percent ownership in PT Samsonite Indonesia, the main distributor and importer of merchandise and accessories under the Samsonite brand. The investment supported Mitra’s net profit surge exceeding growth in revenue.

MAPI, whose market capitalization stood at Rp 10.54 trillion, recently said that it aimed to see further 25 percent growth this year by opening up to 300 additional stores to accompany its existing 1,057 stores (as of the end of January).

Lifestyle retailer focusing on lower and middle-lower class customers PT Ramayana Lestari Sentosa reported only a 6 percent increase in net profits to Rp 377.59 billion in 2011 from Rp 354.75 billion a year earlier.

The increase was supported by 6 percent growth in sales, where Ramayana earned Rp 5.09 trillion last year compared to Rp 4.77 trillion in 2010.

As of Dec. 31, 2011, the company operated 97 department stores branded Ramayana, seven stores branded Robinson and three stores branded Cahaya.

Another retailer PT Matahari Putra Prima (MAPP), the operator of Hypermart, Timezone and Foodmart, recorded a 97 percent drop in its net profits in 2011, particularly due to divestment of its subsidiary PT Matahari Department Store, which holds the Matahari store chain.

MAPP actually reported a 4 percent increase in its revenue to Rp 8.9 trillion in 2011 compared to Rp 8.54 trillion in 2010, when the company remained consolidating income from Matahari department store. However, growing cost of revenue caused MAPP’s gross profit to fall 16 percent to Rp 1.56 trillion in 2011.

MAPP faces other retailers such as PT Hero Supermarket, which owns supermarket store brands Hero and Giant.

Hero reported Rp 8.95 trillion in sales and Rp 273.59 billion in net profits in 2011, increasing by 16 percent and 23 percent respectively compared to gains in 2010.

Hero is expected to book further growth as its controlling shareholder is preparing significant investment for the company. According to a file submitted to the Singapore Stock Exchange last month. Dairy Farm International Holding Ltd. — the owner of Mulgrave Corporation BV, which controls 94.28 percent stake in Hero — said that Hero would continue expansion in 2012 with seven sites already secured for the opening of new hypermarkets.

Hero has not replied emails seeking confirmation about the corporate action.

Hero is also expected to see robust growth in the next few years as the company recently announced that it secured franchising license from Swedish home furnishing stores branded IKEA, starting from 2014.

Hero’s attempt to bring IKEA to the country seems to be an effort to grab middle and upper-middle customers.

“Like MAPI whose strength is providing foreign branded products to the country, currently we have seen phenomenon where the middle class are going to Singapore or Malaysia to shop,” Andrew said.

IKEA’s presence will likely challenge home furnishing retailer PT Ace Hardware Indonesia. Ace reported a 47 percent increase in net sales to Rp 2.43 trillion in 2011 from Rp 1.64 trillion a year earlier.

Despite growing selling expenses, other expenses and financial charges, Ace maintained net profits at
Rp 285.13 billion last year, a 66 percent increase from Rp 170.98 billion in 2010.

Minimarket operators PT Sumber Alfaria Tirjaya and PT Midi Utama Indonesia — both are owned by one of the richest people in the country, Djoko Susanto — also enjoyed business growth.

Sumber Alfaria, which holds ownership of Alfamart minimarket chain, booked a 29 percent increase in revenue to Rp 18.23 trillion last year, which helped the company to experience 41 percent increase in net profits to Rp 360 billion.

Midi Utama, which owns Alfamidi chain store, saw 25 percent growth last year, by reaping Rp 2.58 trillion in sales compared to Rp 4.71 trillion in 2010. Midi Utama’s net profits stood at Rp 31.62 billion in 2011, a three times increase from Rp 10.20 billion year on year.

Taking opportunity in the growing retail market, PT Supra Boga Lestari — the operator of Ranch 99 Market retail outlets — is planning to sell its shares in the capital market, hopefully this May, to gain funds to finance expansion.