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Jakarta Post

Drop in Alfamart profit reflects retail business condition: Association

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, April 5, 2018   /   11:51 am
Drop in Alfamart profit reflects retail business condition: Association Shoppers select items at a supermarket in Tangerang, Banten in this undated photograph. (Antara/Lucky.R)

The Association of Indonesian Retailers (Aprindo) has said last year's 50 percent drop in profit of PT Sumber Alfaria Trijaya, the operator of Alfamart convenience stores, reflected the current condition of the retail business.

Aprindo deputy chairman Tutum Rahanta said in Jakarta on Wednesday Alfamart’s performance indicated the low purchasing power of the people. “The drop in profit indicates the people’s ability to purchase,” said Tutum in Jakarta on Wednesday as reported by kompas.com.

Alfamart and the likes only sold goods that were daily needs by the people; therefore, its business performance indicates the purchasing power of the people, he added.

According to Alfamart’s financial report to the Indonesia Stock Exchange (IDX), Alfamart booked Rp 300.27 billion (US$21.82 million) in profit in 2017 from Rp 601.58 billion in 2016. Meanwhile, its revenue increased to Rp 61.4 trillion last year from Rp 56.1 trillion in 2016.

“Last year was a relatively tough year, and I think it did not only affect us. We could not achieve our target, while operation costs increased,” said PT Sumber Alfaria Trijaya CEO Hans Prawira in Jakarta Tuesday.

Tutum expressed hopes that the government would be able to find a way to resolve the problem. “It is a fact; it is better if we talk about the future,” Tutum said. (bbn)