Ace Hardware to Leave Indonesia as of December 31, After 29 Years

TEMPO.CO, Jakarta - Ace Hardware is leaving Indonesia as of December 31, 2024, even though the presence of the U.S. appliance retail chain was just mentioned by Coordinating Minister for Economic Affairs Airlangga Hartarto as an indicator of national economic growth.

“The number of Alfamarat, Indomaret, Ace Hardware outlets are an indicator of the national economy. How many iBox outlets, it is also an indicator of our retail purchasing power,” said Airlangga at the opening of the Indonesia Retail Summit 2024 in Jakarta, Wednesday, August 28, 2024.

Airlangga said, based on the World Bank report, the growth of the consumption or retail sector in Indonesia has continued to grow since 2022. Malls in Indonesia are among the best and modern shopping centers, especially in the Jakarta area.

The closure was made after its licensee PT Aspirasi Hidup Indonesia Tbk did not continue the license agreement with ACE Hardware International Holdings, Ltd. which will expire on December 31, 2024, after 29 years of cooperation.

“This is in line with the company's focus and business development plans in the future to respond to market trends and consumer preferences that continue to evolve,” said PT Aspirasi's press release quoted from the Indonesia Stock Exchange Disclosure Information, September 3, 2024.

The Ace Hardware used retail store will change its name, but it has not yet been announced.

“We are very confident that the careful preparations that we are working on will be able to maintain the Company's position as a market leader, maintain strong competitiveness in the retail industry, be more relevant to the needs of each customer, and have a greater positive impact on all stakeholders,” said Director of PT Aspirasi Hidup Indonesia Tbk, Gregory S. Widjaja. 

He said that his company is committed to presenting a variety of product and service innovations that are more in line with the needs and aspirations of customers in Indonesia. The company is optimistic that it can go further to create more relevant and sustainable business growth, and improve the customer shopping experience to become a source of inspiration for a better life.

The company is currently preparing to launch a new brand identity that reflects its commitment to quality and service excellence, which is scheduled to be introduced to all customers in early 2025.

Ace Hardware in Indonesia was established 29 years ago and now has a network of 241 stores spread across 73 cities in Indonesia, which also has an omni-channel presence through 'ruparupa.'

Airlangga: Jakarta Retail Sector Supported by Middle Class 

Coordinating Minister for Economic Affairs Airlangga said that the retail sector in Jakarta is strong because its per capita income has passed the middle income trap.

The average income in Jakarta, said Airlangga, has reached US$20,000 or Rp300 million per year. This has encouraged the establishment of a number of shopping centers.

“Actually, if we monitor economic growth, the type of retail in the city can reflect the level of income per capita,” he said as quoted by Tempo.

Furthermore, the government will continue to maintain the purchasing power of the middle class by providing various support programs such as contribution assistance for BPJS Kesehatan, pre-employment cards and energy subsidies.

“So this is the cushioning program carried out by the government so that every community has access to savings for purchasing power and also for the future. Our middle class is characterized by what is purchased or spent beyond food and beverage,” Airlangga said.

TEMPO.CO

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