RETAIL TURNOVER PREDICTED TO GROW 5-10 PCT IN 2009

Jakarta, Dec 19 (ANTARA) - Indonesia's retail turnover is predicted to grow only five to 10 percent next year due to people's decreased buying power amid oversupply as a result of lower export demand.
"Retail turnover in 2009 will not be better than in 2008," the general chairman of the Association of Indonesian Retailers (Aprindo), Benjamin Mailool, said here on Friday.
He said it was certain retailers would hold more discount programs to attract buyers with a view to promoting turnover growth.
It was hoped suppliers would cooperate with retailers by giving discounts so that people could still go shopping to take advantage of the lower prices.
"What we are afraid of is that the current world financial crisis will reduce consumers' buying power," he said.
He said he also hoped the government could assure smooth and secure implementation of next year's general elections so that political stability in the country could be maintained and businesses could run well.
Retail turnover in 2008 is predicted to reach the target set at Rp70 trillion or around 20 percent of the 2007 achievement. He said the growth was attributed to opening of new shops and growth made by old shops.
Aprindo's executive chairman, Tutum Rahanta, said retail growth in 2009 was predicted to be lower also because some shops would close down as a result of decreasing sales.
"Some would close but also move to busier locations," he said.
Aprindo's secretary general Rudi Sumampouw said consumers' buying pattern since the crisis had changed. He said before the crisis broke out their ratio of food and product purchase was 40:60 or 30:70 but now it changed into 50:50. "People are now prioritizing food purchases," he said.
He said retail growth this year was predicted to remain good because of sales in December could be twice or 1.5 times higher than in other months.
"In December sales are rising because of Christmas and New Year celebrations. We are increasing our stocks twice to three times more," he said.
On a separate occasion, Senayan City Shopping Mall CEO Handaka Santosam hoped the government would immediately implement a tax refund for foreigners or foreign visitors shopping in the country to jack up sales while local people's buying power dropped.
"With the tax refund we can expect rising purchases by foreign visitors. However, the policy has not yet been implemented," he said.
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