Jakarta (ANTARA News) - Modern retail sales in Indonesia grew 12.5 percent to Rp135 trillion this year from Rp120 trillion last year.

The growth was also marked with the rapid expansion of outlets of mini markets especially in new residential complexes, deputy secretary general of the Indonesian Association of Retail Companies (Aprindo) Satria Hamid Ahmadi said.

However, the business would have to go through heavier challenges in 2013, Satria said here on Thursday.

There will be an increase in electricity tariff and distribution cost, he cited .

He said recent regulation to raise workers` wages would not necessarily result in an increase in sales as the prices of goods also have climbed with report of energy cost.

He said increase in the workers` salary should be compensated with an improvement in infrastructure, and business incentives.

He said that flat growth is expected in retail business next year, adding sales would increase but not because of an increase in sales but more on price hike.

"Another big challenge is the fact that regional minimum wage in Jakarta is 5 percent higher than in other provinces," he said.

(SYS/H-ASG/A014)

Editor: Suryanto
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