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.