PT Indomarco Prismatama, which controls the country’s renowned minimarket network Indomaret, plans to open 800 new stores this year, 40 percent of which are to be franchised, after partnering with local lending giants to finance the stores’ franchisees.
CIMB Niaga (BNGA) was the latest in line after an agreement with Bank Mandiri (BMRI) to provide credit for Indomaret’s franchisees with special rates of between 11 to 12 percent per year, Indomaret finance director Hendarto Josojuwono said Friday.
Indomaret, established in 1988, had 6,161 stores as of February this year, 34 percent of which are operated by other companies under franchise agreements. Only 5 to 7 percent of Indomaret’s over 6,000 minimarket stores could be considered to have “failedâ€, he added.
An Indomaret store requires a Rp 600 million to Rp 700 million (US$77,000) investment, including for the franchise fee, but store renovation and other expenses may require another Rp 300 million, Hendarto said.