JAKARTA. Retail business competition becomes tight after foreign investors launched expansion to domestic market. The subsidiary of Uni Arab Emirates based Lulu Group, PT Lulu Group Ritel has recently has invested US$9 million to build a hypermarket in Cakung, East Java. Lulu has committed to invested US$300 million to establish 10 hypermarkets, logistic centers, and warehouse facilities by the end of 2017. Previously, Head of Investmetn Coordinating Board (BKPM) said that retail investors from Australia, Canada, and the United States of America (the US). However, domestic retailers are optimistic that the current expansions will not generate negative impact to their business. Director and Corporate Secretary of PT Matahari Putra Prima Tbk (MPPA) Danny Kojongian said that the poor infrastructure, mainly in outside Java, will be a major challenge for the new investors in expanding their business. “MPPA has solid outlet and distribution networks to reach potential markets in outside Java, mainly in eastern part of Indonesia”, Danny said.
Retail business becomes stiff
JAKARTA. Retail business competition becomes tight after foreign investors launched expansion to domestic market. The subsidiary of Uni Arab Emirates based Lulu Group, PT Lulu Group Ritel has recently has invested US$9 million to build a hypermarket in Cakung, East Java. Lulu has committed to invested US$300 million to establish 10 hypermarkets, logistic centers, and warehouse facilities by the end of 2017. Previously, Head of Investmetn Coordinating Board (BKPM) said that retail investors from Australia, Canada, and the United States of America (the US). However, domestic retailers are optimistic that the current expansions will not generate negative impact to their business. Director and Corporate Secretary of PT Matahari Putra Prima Tbk (MPPA) Danny Kojongian said that the poor infrastructure, mainly in outside Java, will be a major challenge for the new investors in expanding their business. “MPPA has solid outlet and distribution networks to reach potential markets in outside Java, mainly in eastern part of Indonesia”, Danny said.