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INDONESIAN  COMMERCIAL NEWSLETTER
January 2007

List of Contents


FOCUS: PURCHASING POWER OF THE PEOPLE TO GROW IN 2007        1

INDUSTRY PROFILE: DEVELOPMENT OF MODERN RETAIL BUSINESS        5

DEPARTMENT STORE REVIVING        43
  • Factory outlet minor rivals        45
  • Locations of department store        46
  • Big players        48
  • Market segments        52
  • Market share of big players in department store industry in Indonesia        53
  • Sales growing faster        53
  • Profit        54
  • Competition        55
  • Strategies        56
  • Investment        58
  • Risks        58
  • Conclusion        59

SPECIALTY STORE GROWS AS NEW ALTERNATIVE        60
  • Players        62
  • Large cities dominating        63
  • Development of franchise system        63
  • Electronic products        64
  • Tools dominated by imported products        64
  • Strategy varying        65
  • Investment        67
  • Prospects        67

COMPANY PROFILE:
  • HERO GROUP        68

CORPORATE NEWS IN BRIEF:
  • PT Telkom to expand cooperation with China in satellite procurement        74
  • Adam Air to expand operations to Hong Kong and Kuala Lumpur        74
  • Pertamina and Statoil awarded Karama block        74
  • Mitsubishi takes control of 50% of Kangean block        75
  • RNI to cooperate with Russian investor to modernize bagasse fueled power plant        75
  • Tycoon wants to retake control of Tuban Petro        75
  • BRI set to acquire a bank to be converted into Sharia Bank        75
  • New creditor sought to revitalize Dipasena        76
  • Petrogres to expand its NPK production capacity with new plant        76
  • Indomobil to exports China's Chery QQ        76

ECONOMIC NEWS IN BRIEF:
  • Government renegotiating Tangguh LNG price        77
  • HTI companies facing divestment over failure to repay debt        77
  • Foreign investors gaining domination of Indonesian textile industry        77
  • Indonesia's sugar production predicted to fall        77
  • Government to start issuing issue T-bills in Apri        78
  • Indonesia and Iran agree to reduce cost of fertilizer project        78
  • Signing of EPA with Japan delayed again        78

APPENDICES:
  • Directory of retailers company in Indonesia        79

ECONOMIC INDICATOR:
  • Consumer Price Index in Indonesia        81
  • Oil Prices        82
  • Foreign Exchange and Gold Price in Indonesia        83
  • The Indonesian Economic Trends        84


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