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Eastern Indonesia’s robust growth attracts McDonald’s to focus on region

McDonald’s Indonesia spokesperson Sutji Lantyka said that apart from new outlets planned in South Sulawesi, the company had also planned to expand to Central Sulawesi, Southeast Sulawesi, West Sulawesi and Gorontalo, as well as other provinces in eastern Indonesia.

Andi Hajramurni (The Jakarta Post)
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Makassar, South Sulawesi
Thu, November 7, 2019

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Eastern Indonesia’s robust growth attracts McDonald’s to focus on region McDonald's logo. (Shutterstock/File)

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usiness growth stories in eastern Indonesia provinces have attracted major franchises to expand there, including American fast food giant McDonald's.

The company’s Indonesian arm, which operates under PT Rekso Nasional Food, announced last Friday that it would open a McDonald’s in Gowa regency, South Sulawesi, as part of its large-scale plan to open outlets in other eastern Indonesia cities.

Gowa, a two-hour drive from South Sulawesi’s capital of Makassar, has seen its economy grow aggressively in past years, led by agriculture, trade and construction.  The McDonald’s in Gowa will be one of two outlets the company will have opened in the past couple of months, as well as the company’s sixth outlet in the province.

McDonald’s Indonesia operational director Laksmi Zasmiati said the company was compelled to expand beyond Makassar since the market in South Sulawesi had been very robust. In total, the company has established six outlets in South Sulawesi since 2000 – five outlets in Makassar and one in Gowa.

She said a survey the company recently conducted on its outlets in Makassar showed that the customer base was not limited to locals. People visiting from neighboring cities and regencies in the province, including Gowa, also accounted for a considerable bulk of the company’s customers in Makassar, she said.

“As South Sulawesi’s largest city, Makassar has massive potential for business expansion. We keep attracting more customers there,” Laksmi said, adding, that McDonald’s had planned further expansion in South Sulawesi considering the province’s positive growth.

Read also: This eastern Indonesia city books highest growth in e-money transactions

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