Mini Markets Can Survive Competition with Online Stores: Aprindo

TEMPO.CO, Jakarta - Not all goods are suitable to be sold online; thus conventional stores like supermarkets will survive the competition with online stores, according Deputy Chairperson of the Indonesian Retail Association (Aprindo) Tutum Rahanta.

“If people want to buy their daily needs such as soy sauce instant noodles, and other daily needs through online stores, they will be starving already,” Tutum said in Jakarta on Saturday (28/10).

Nevertheless, Tutum admitted that there would be more retail shops that will close down and those shops sell non-food items.

“Some representatives from those shops have confirmed to me that they would close down or reduce the growth targets,” Tutum said, adding that businessmen will also take efficiency measures if the trend of conventional retail stores continues to be negative, some of which are closing of the stores or cutting company’s spending.

Tutum further added that the government should have issued regulations so that the competition between online stores and conventional stores are in balance. According to him, the government should at least have also made extra efforts to control taxes from both conventional stores and online stores.

"The government can start from tax matters. For example, the government can instruct anyone who want to sell their goods online to have clear identities and tax number (NPWP)," he said.

Tutum also criticized the government who is always late in issuing regulations for shops using online platform. According to him, the government in the future is expected to be more responsive and to be updated with the fast development in the digital world.

"I note that the government is always late in formulating regulations. For example, when they government has just issued a new regulation, things suddenly change," Tutum said.

ALFAN HILMI