"Based on the development of retail business in West Java in the past several years, we are optimistic that in 2013 this business will still gain positive growth," Hendri Hendarta, the secretary of Aprindo West Java, said.
The retail business in West Java in 2012 grew by 16 percent so that this business still gas the potential to gain positive growth in 2013, he said.
He said that the retail business in West Java grew and develop evenly across the province and help boost the development of small and medium scale business (UKM).
Besides that, the retail business also helped encourage UKM products to obtain certification and to have retail business standards.
"The volumes of UKM products absorbed by retail businesses continue to increase and this condition is promising the UKM future," the Aprindo secretary said.
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 Aprindo, Satria Hamid Ahmadi said meanwhile.
However, on national scale the business would have to go through heavier challenges in 2013, Satria said.
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.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
