Indonesia’s Sarinah Inks Deals with Swiss, Mexican Firms to Expand Retail Business

JAKARTA, KOMPAS.com – Indonesia’s state-owned department store PT Sarinah (Persero) signed memoranda of understanding (MoU) with two foreign companies in a bid to transform its business and expand its presence in overseas markets.

The two companies are Swiss travel retail group Dufry and Mexico’s Omega.

“I hope Sarinah can also focus on the selection of premium small-medium enterprises products that suit best the interests and market of the world’s duty-free products,” said State-Owned Enterprises Minister Erick Thohir in a statement on Monday, November 9.

Erick called on PT Sarinah to improve its institutional and human resources capacities through the technology scouting and learning process on retail management from Dufry.

Also read: Indonesia’s Oldest Store Sarinah to Reopen Next Year

“For the first stage, I give a target of promoting at least 10 best Indonesian products through this cooperation and it is hoped that there will be more opportunities for local products and SMEs to go global,” said Erick.

The minister said the cooperation is one of Sarinah’s strategic steps to transform and expand its products into the global market.

He said through cooperation with strategic partners such as Dufry and the Omega group from Mexico, especially in the retail and travel and leisure sectors, Indonesia will have opportunities to promote its SMEs' products to enter the major leagues of the international market.

The MoU, he added, can also bring several mutually beneficial business opportunities for the companies.

Also read: Indonesia Faces Recession as Economy Shrinks 3.49 Percent in Q3

PT Sarinah is the only state retail in the tourism sector and a supporter in pioneering international markets within the framework of multilateral trade. Sarinah must always carry the national interest and the national brand to foreign countries, he said.

The cooperation aims to realize the country's identity which is rich in diversity by showcasing the products permanently in the world’s premium retail markets, the minister said.

The MoU will also display the Indonesian Corner and the House of Indonesia in various outlets and shopping centers under Dufry’s networks worldwide.

It was previously reported that Sarinah — Indonesia’s oldest department store in the heart of Jakarta — is currently undergoing its first major renovation since its establishment in 1967. Under its new concept, the department store aims to accelerate the growth of SMEs and local products or local brands. The store is scheduled to reopen next year on the 76th Independence Day.

(Writer: Akhdi Martin Pratama | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/11/09/141212826/mau-go-global-sarinah-gandeng-perusahaan-swiss-dan-mexico.