Distribution Networks in Indonesia

Overview by Globlatrade.net:

Types of Outlet

Department stores
Located in big cities, they have several floors with specialized departments.
Matahari Putra Prima,
Hypermarkets and supermarkets
Located in big cities, they offer all types of products at reasonable prices.
Carrefour Indonesia, Hero Supermarket Tbk,
Local shops/ superettes
Located especially in residential areas, they offer a complete range of goods, at competitive prices.
Circle K, AM/PM, First Inti Retailindo, Sumber Alpharia Trijaya
Specialized stores
Supermarkets specialized in a particular field, located in town
Electronics: Electronic City

Toys: Trusindo Bina Pramata

Pharmaceutical products: Guardian

DIY/Home: Ace Hardware

Sport: Athlete's Foot

Culture: Toko Gunung Agung,

Shoes: Sepatu Bata

Optics: Optik Tunggal Sempurna, Optik Melawi Prima,

Millenia Buana Retail,


Discount stores
All products, located in towns, price is more important than quality
Ramayana Lestari Sentosa Tbk,
Markets, traditional shops
Itinerant merchants, traditional stalls, which you can find practically everywhere and which are part of the daily life of most of the population.

Evolution of the Retail Sector

Growth and Regulation
Consumer goods were originally sold on traditional markets which could be categorized in different sectors like wholesalers and retailers. With modern markets, most manufacturing companies do not distribute their products themselves as this is too expensive; they call on companies specialized in distribution, which, in turn, use traditional channels.

Doing business in Indonesia means going through a wide spectrum of agents, distributors or economic intermediaries. It may be difficult to find a distributor for storage, as expenses linked to warehousing are rather crippling. Corruption is everywhere, especially in the Customs, and this makes offshore warehousing more attractive (especially in Singapore). Likewise, corruption in police services and among local officials makes goods transport across Indonesia from a central warehouse very costly.

Market Shares
Although traditional markets are still dominant in Indonesia, modern retail shops, such as hypermarkets, are rapidly becoming more popular, especially in urban areas. Hypermarkets enjoyed the fastest growth rate in 2005: their number rose by 55% and their area by 51%. In spite of the rapid growth of modern retail shops, the "other" retailers of grocery products (small traditional stalls, itinerant merchants and other small retailers) represent 95% of all retailers and almost 56% of sales.
Organizations in the Retail Sector
Indonesian shopkeeper's association on Multiply (APIM)

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