IKEA Stores To Open In Indonesia In 2014

By Ahmad Fuad Yahya JAKARTA, March 27 (Bernama) -- International home products company, IKEA will be opening its stores in Indonesia starting 2014, following a franchise deal with Indonesian public-listed retail giant PT Hero Supermarket (HERO). The franchise agreement, signed with Inter IKEA Systems on Thursday, will allow HERO to sell IKEA's furniture and interior design products in Indonesia, HERO said in an Indonesia Stock Exchange (IDX) filing on Monday, local dailies reported Tuesday. The agreement will allow HERO to open IKEA stores across the archipelago, from 2014 to 2021. IKEA will have to approve the number and location of the stores based on its own standards while HERO will have the option to extend the partnership and expand the number of outlets after the franchising agreement expires, English daily the Jakarta Globe reported. Meanwhile, another English daily, The Jakarta Post reported that Indonesia's consumer goods sector has been seen as a lucrative market in recent years, as the country's economy, which is heavily reliant on household consumption, grew above global averages at more than 6 percent in the past two years. IKEA's presence in Indonesia — which will add to the Swedish furniture retailer's 325 stores in 35 countries — will boost competition among home improvement retailers like PT Ace Hardware Indonesia (ACES) and PT Cahaya Sakti Multi Intraco, which owns the Olympic Furniture network, the report said. -- BERNAMA