Moment of truth for Indonesia’s food retailers

Abstract

Retail trade in Indonesia is on the verge of momentous change. Indonesian retailers have been protected from foreign competitors but these rules may be relaxed. Foreign retailers, quite naturally, are likely to be attracted to any country with a large population base. That in Indonesia approaches 200 million but there are only 350 supermarkets currently in operation. There is also only one real supermarket chain. The remainder, for the most part, are small independent operators with selected regional representation. In this environment, it is not surprising that the Indonesian consumer continues to rely heavily on the traditional and non‐supermarket trade. Describes the changes taking place and the pace at which these are happening. Taking place also is a slow but steady shift in consumer purchasing patterns away from the traditional outlets to supermarkets. Concludes that not only is Indonesian retailing in a process of change, but also that this change is dramatic and exciting. For those without a commitment to change there will be no future.

Citation

Walker, D. (1996), "Moment of truth for Indonesia’s food retailers", International Journal of Retail & Distribution Management, Vol. 24 No. 8, pp. 25-30. https://doi.org/10.1108/09590559610150357