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etail giant Matahari Putra Prima (MPPA) will allocate about Rp 680 billion (US$52 million) for its capital expenditure (capex) this year to further strengthen its foothold in the country'€™s retail market, a company executive has said.

Danny Kojongian, MPPA corporate communications director, said on Wednesday that the capex funds would be partly used to build at least 30 new retail outlets, most of which would be located outside Java.

'€œWe see that aside from Java island, which has high potential, other regions, particularly in eastern Indonesia, also offer great opportunities,'€ Danny said.

He said that capital expenditure would be between 4 and 5 percent of total sales of about Rp 13.59 trillion recorded last year.

The company will open more than 10 Hypermart outlets, six Foodmart outlets and 21 Boston outlets this year.

MPPA previously added seven new stores to the initial 267 stores throughout Indonesia during January to March.

MPPA, which operates Hypermart department stores, Foodmart grocery stores and Boston beauty-health stores, hopes to book 15 percent growth in sales this year with the new stores.

Despite the sharp depreciation of the rupiah against the US dollar and the country'€™s slowing economy, the firm booked a 60 percent increase in its net profits to Rp 81.58 billion year-on-year (yoy) during the first quarter, during which the company'€™s net sales rose to Rp 3.34 trillion from Rp 3.12 trillion yoy.

Danny revealed that MPPA had been strictly applying preventive measures, particularly expense control, to sustain its growth in the first quarter.

MPPA focused on daily based control over operating costs and costs of product, he remarked.

'€œWe demand discipline on expenses. We won'€™t disburse the budget unless the system, procedure and documents are fulfilled,'€ Danny explained.

He hoped that the projected sharp increase in sales in the fasting month, which starts in the middle of June, and during Idul Fitri, would be able to compensate weak sales during the first months of the year.

According to him, sales during the fasting month could grow by between 100 and 150 percent from those in normal periods.

Moreover, MPPA plans to innovate its retail business under two subsidiaries, Hypermart and Foodmart.

Danny revealed that MPPA was improving some Hypermart stores and building others with the G7 concept, emphasizing cost efficiency and convenience. He mentioned that the first Hypermart G7 would be in North Lippo Karawaci, Tangerang.

Meanwhile, Foodmart would be diversified with Foodmart Primo, which targeted the middle-upper market in the big cities, such as Jakarta, Surabaya, Medan and Makassar, Danny said.

Aside from Hypermart, Foodmart and Boston, MPPA is currently preparing the building of a wholesale market, Smart Club Trader Wholesale.

MPPA is now 50.2 percent owned by diversified holding company PT Multipolar (MLPL), 26.1 percent by Singapore-based Prime Star Investment Pte. Ltd. and 23.7 percent by the public.

Last year, MPPA booked Rp 554 billion in net profit, a 24.5 increase from about Rp 444.9 billion in the previous year.

In 2014, the company'€™s total sales rose by 14 percent to Rp 13.59 trillion from Rp 11.9 trillion in 2014.