Foreword

Even though the recent national economy is facing the impact of global economic crisis, but the modern retail business in Indonesia is not obstructed and even shows a significant growth. This was caused by the large market potency in Indonesia and the strengthening of medium and small class business, has increased the amount of society group with middle-up income, which has life style to shop in modern retail.

The development of modern retail business is shown in the sales turnover, which still growing from Rp 42 trillion in 2005, increased to about Rp 58 trillion in 2007, and in 2008 has reached about Rp 67 trillion. The recent turnover increase was pushed by the new outlet opening of hypermarket and minimarket. For example, hypermarket foreign retailer, Carrefour, in short time has succeeded in dominating retail market in Jakarta, and other big cities, with outlet ownership until the end of 2008 has reached 70 units.

Likewise, the consolidation of Hero Supermarket, which was directed to hypermarket after the decreasing tendency of its supermarket, has shown a positive result. From the first outlet of its hypermarket, which cooperates with foreign retailer from Malaysia in 2002, Giant Hypermarket is growing to 17 outlets in 2007 and increased to about 23 outlets in 2008. Then, local retailer Matahari, within one year in 2004, it has opened 4 hypermart outlets, even by the end of 2008, it has reached 39 outlets.

The high interest of local retailer to follow the success of Carrefour, because the turnover of hypermarket could reach Rp 500 million per day, even in some Carrefour outlets in its peak season, could gain a turnover up to Rp 1 billion per day. Certainly, this would potentially crush the supermarket, which has the same pattern in attracting the monthly shopping consumer. The rapid development of hypermarket, because it suited with the consumer character in Indonesia, which made shopping as a part of recreation. Besides, it is able to offer the lowest price, fresh product, vast shopping area, and complete products.

But, the rapid development of modern market often created protest from the party that was inflicted, such as traditional market or even modern retail itself. Even, the President Regulation No. 112 year 2007 about Arrangement and development of traditional market, shopping center, and modern market, which was just validated in December 2008, created a controversial. Especially, concerning the violation of modern retail that is selling nine basic goods below the price of traditional market.

Even the violation of zone and distance that has been going on for a long time, has taken many casualties from the traditional market. But, the Association of Retail Businessmen Indonesia (Asosiasi Pengusaha Ritel Indonesia - APRINDO) has filed a complaint from modern retailer about the content of Permendag No. 53 year 2008, among other concerning trading term cost limitation from the juridical and commercial aspect.

Besides discussing the government policy that still need socializing, various other aspects of retail sector would also be discussed. Mainly, by providing competition map of retail business in Indonesia, this would be beneficial for the business circle, especially directly or indirectly involved with modern business retail, such as financial institution, banking, supplier, and so on. This study is also useful for the investors that would cooperate with company, which is actively involved in modern retail business in Indonesia.

This comprehensive study is offered at the price of Rp 5,000,000.00 (Five million rupiah) per copy for the Indonesian version and US$ 750 (Seven hundred and fifty US dollar) for the English version with negotiable exchange rate. For those who is interested, please do not hesitate to contact PT Media Data Riset through telephone number 021-8093140, mobile phone: 085217061945 or through e-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it / This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . The order form is attached to this letter. For overseas or outside Jakarta order, additional delivery fee would be charged. Thank you for your kind attention.

Table of Content

1. INTRODUCTION
1.1. Back ground    
1.2. Purpose and Scope of study            
1.3. Data and Information source

2. POPULATION AND GENERAL DESCRIPTION OF INDONESIAN ECONOMIC
2.1. Population    
2.2. Economic development       
2.3. Investment development
2.4. Inflation development   
2.5. Rupiah exchange rate development against some foreign currencies
2.6. Credit or loan interest rate development

3. RETAIL BUSINESS DEVELOPMENT  
3.1. Traditional market condition
3.2. President Regulation No. 112 year 2007
3.3. Modern shopping center
3.4. Modern retail started from Supermarket and Department Store
3.5. Retail turnover is increasing
3.6. Role of Modern retail
3.7. Pioneer in Modern retail in Indonesia          
3.8. Modern retail development
3.9. Modern retailer implement Multiform
3.10.Number of modern retail and its spreading
3.11.Retailer used franchise pattern         
3.12.Modern retail supplier
3.13.BM & PPnBM branded Product
3.14.Retailer advertising expense

4. HYPERMARKET
4.1. Rapid growth
4.2. Concentrated in Java
4.3. Development based on location
4.4. Hypermarket strategic market
4.3. Hypermarket turnover development
4.4. Hypermarket Retail and wholesale
4.5. Characteristic

5. MINIMARKET
5.1. Growing
5.2. Indomaret has the largest outlet
5.3. To  boost turnover minimarket needs many outlets
5.4. Turnover development
5.5. Characteristic

6. SUPERMARKET
6.1. Between Hypermarket and Minimarket
6.2. Arrangement
6.3. Supermarket  outlet is still developing
6.4. Expansion of the main player
6.5. Market strategy
6.6. Sales turnover development
6.7. Characteristic
6.8. Competition

7. DEPARTMENT STORE
7.1. Present condition
7.2. Segmentation and market Strategy
7.3. Turnover development
7.4. Matahari implements One Stop Shopping concept
7.5. Department Store
7.6. Characteristic
7.7. Department Store competition pattern

8. MODERN RETAIL SPACE AND LOCATION
8.1. Modern retail space usage
8.2. Modern retail occupies some shopping center
8.3.Relationship of shopping center management with modern retail
8.4. Shopping center operated in Jakarta and its surroundings
8.5. Business group in shopping center sector
8.6.Capitalization of shopping center project
8.7.Rental price of shopping centers in Jakarta
8.8.Development of shopping center is rapidly growing
8.9. Shopping center development in the region
8.10.Square, New Trend of shopping

9. MAIN LOCATION OF MODERN RETAIL IN JAKARTA
9.1. The Golden Triangle Area
9.2. Block-M Area
9.3. The North and East Area
9.4. Mangga Dua Area
9.5. The West Area

10. MODERN RETAIL COMPANY PROFILE
10.1.  PT. MATAHARI PUTRA PRIMA TBK.
10.2.  PT RAMAYANA LESTARI SENTOSA Tbk.
10.3.  PT HERO SUPERMARKET Tbk.
10.4.  PT MITRA ADIPERKASA
10.5.  PT METRO SUPERMARKET REALTY, TBK.
10.6.  PT PASARAYA NUSAKARYA
10.7.  PT  MAKRO INDONESIA
10.8.  PT CARREFOUR INDONESIA
10.9.  PT INDOMARCO PRISMATAMA
10.10. PT AKUR PRATAMA
10.11. PT LION SUPERINDO
10.12. PT ALFA RETAILINDO TBK.
10.13. PT RIMO CATUR LESTARI
10.14. PT METROPOLITAN RETAILMART
10.15. PT MUTIARA RITELINTI WIRA
10.16. PT GELAEL SUPERMARKET       

11. PROJECTION OF MARKET SIZE/DEMAND SUPERMARKET, DEPARTMENT STORE, HYPERMARKET, AND MINIMARKET

11.1. Population, Regional income and income per capita in Jabotabek and ten others big cities
11.2. Public's expenditure for foodstuff and non-food
11.3. Shopping share in each modernretail
11.4. Projection of sales and supermarket space supply in 15 big cities
11.5. Projection of sales and Department store space supply in 15 big cities
11.6. Projection of sales and hypermarket space supply in 12 big cities
11.7. Projection of sales and minimarket space supply in 7 big cities

12. CONCLUSION AND MODERN RETAIL BUSINESS TREND
12.1.1. Modern retail is still need outlet space, and zoning arrangement
12.1.2. Directed to hypermarket and Minimarket
12.1.3. Location tends to choose center amusement
12.1.4. Product completing One Stop Shopping pattern
12.1.5. Marketing strategy to the cheaper price
12.1.6. Government regulation supporting healthy competition
12.1.7. Modern retail problem, competition  is getting tighter and decreasing
        buying power

- DIRECTORIES

- ATTACHMENT