Although Indonesia’s retail sector was officially added to the government’s negative investment list in April 2014, thereby prohibiting foreign ownership of smallscale enterprises, foreign investment in large-scale operations – particularly in the fast-moving consumer goods (FMCG) segment – has seen a sharp rise in recent years. Most recently, global equity investor Warburg...
The retail market in Indonesia has always had a strong luxury component. It is a country with many elites and super-wealthy, and global brands have been there to cater to them. What is happening now is altogether different and potentially more promising. The lower-upper and the upper-middle sections of the wealth spectrum are growing as the country...
To say that there has been a retail boom in Indonesia is an understatement. The people of the country have over the course of a few years become consummate shoppers, staying up to date with the latest trends and eagerly spending. Indonesia’s economy has always been driven by the consumer, but now it is being taken to the next level as the people of...
In line with the recent trend toward nationalism and protectionism, the Indonesian government issued new regulations for franchises in 2012. Like other efforts to defend the country’s economic interests, it is fairly balanced and pragmatic. The policy works to encourage more local participation and limit dominance by any single foreign country or...
Modern retail seems to be an obvious development in Indonesia with the quick proliferation of minimarkets, convenience stores and hypermarkets. The country is crowded, so it makes sense to have numerous small, highly efficient shops nearby so driving is not necessary. It has a large, relatively poor population, so big, efficient retailers providing...
The electronics retail market in Indonesia is crowded. Many players, raging from well established public companies in the fanciest of malls to no-name kiosks in disorderly low-end shopping centres vie for handset, tablet and accessory sales. The market is highly competitive and rapidly consolidating. Weaker players are being marginalised and will be...
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