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Salim Group to open 5 new wholesale stores outside Java
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Trade Minister Enggartiasto Lukita visits a Indogrosir wholesale shop in Tangerang, Banten on June 9. (kompas.com/Andreas Lukas Altobeli)
Prominent conglomerate Salim Group plans to open five more Indogrosir wholesale stores outside Java, next year.
Indogrosir operator PT Inti Cakrawala Citra operational director Suyono said the five wholesale shops would be located in Makassar in South Sulawesi, Ambon in Maluku, Kendari in Southeast Sulawesi and Jambi City in Jambi.
With the five new wholesales stores in four cities, the group will operate 21 Indogrosir shops next year. Half of all existing branches are already located outside Java.
"Each shop requires a minimum of Rp 100 billion (US$7.5 million) in investment for physical building and equipment only," Suyono said on the sidelines of Trade Minister Enggartiasto "Enggar" Lukita’s visit to its Tangerang branch office on Friday.
"The expansion follows the development of business potential, especially in the eastern part of the country," he added.
The firm believes the ongoing development of the maritime axis will help it reduce distribution costs, leading to cheaper products for consumers in the eastern part of the country, where prices are higher than those in western Indonesia.
Enggar appreciated the expansion plan, saying that it is indeed important for wholesale shops to expand into countryside to help family-owned shops source cheaper products in order to compete fairly with modern retailers.
Indogrosir targets family-owned shop owners with a special membership scheme as well as by partnering with state bank BNI that offers loans with a low interest of 9 percent (KUR program). (bbn)
