Indonesian Retailers Prepares for ASEAN Market
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Deputy Chairman of the Indonesian Retailers Association (Aprindo) Tutum Rahanta, said that the Association is currently aiming for the ASEAN market, specifically countries like Vietnam, the Philippines, Laos, Myanmar, and Cambodia.
Tutum predicted that hundreds of millions can be gained if Indonesian retailers can tap into international markets. “I think if we can penetrate the market, it would be like serving 600 million people, and it is three times bigger than Indonesian market,” Tutum said on Monday, September 26, 2016.
Tutum said that Indonesian retailer has plenty of open chances and opportunities to tap into the ASEAN market, especially in terms of expansion costs, which according to Tutum, would be similar to expanding their business in Indonesia. In addition, Indonesian retailers would have better chances at expanding in ASEAN with the recent establishment of the ASEAN Economic Community.
“It would be much different if retailers wanted to expand to Japan, opening one outlet there equals opening 30 outlets [in Indonesia], it doesn’t make sense,” Tutum said.
Tutum added that despite retailers’ readiness to expand to ASEAN, Aprindo expected the government to show support by facilitating bureaucratic affairs and adapting regulations.
“The government can lobby the foreign country’s government to see if there are any obstructing regulations, then they can inform retailers,” Tutum said.
Questions & Answers
Q.Which specific countries within the ASEAN market are Indonesian retailers currently targeting?
Which specific countries within the ASEAN market are Indonesian retailers currently targeting?
Aprindo is currently targeting countries such as Vietnam, the Philippines, Laos, Myanmar, and Cambodia. This focus is part of their broader strategy to tap into the wider ASEAN economic community for expansion opportunities.
Q.What is Aprindo's projected financial gain if Indonesian retailers successfully enter international markets?
What is Aprindo's projected financial gain if Indonesian retailers successfully enter international markets?
Aprindo predicts that hundreds of millions can be gained if Indonesian retailers successfully tap into international markets. Tutum Rahanta noted this expansion would allow them to serve a population three times larger than Indonesia's.
Q.Why does Aprindo believe expanding into ASEAN countries is more viable than into markets like Japan?
Why does Aprindo believe expanding into ASEAN countries is more viable than into markets like Japan?
Aprindo believes expanding into ASEAN is more viable due to similar expansion costs to operating within Indonesia. In contrast, opening one outlet in Japan is compared to opening 30 outlets domestically, making it less practical for retailers.
Q.What kind of support does Aprindo expect from the government to facilitate retailers' expansion into ASEAN?
What kind of support does Aprindo expect from the government to facilitate retailers' expansion into ASEAN?
Aprindo expects the government to facilitate bureaucratic affairs and adapt regulations for retailers. They hope the government will lobby foreign governments to identify and inform retailers about any obstructing regulations in target countries.
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