Retailers Are Urged To Start Business Extension, This Is The Cause

Retail illustration (Photo: dock. Unsplash)

JAKARTA - The Indonesian Retail Entrepreneurs Association (Aprindo) has asked retailers to extensify their business amid the economic uncertainty in 2024.

Chairman of Aprindo Roy N Mandey appealed to retail business actors to start stensifying their business outside the retail sector. Meanwhile, business extensification is needed as an anticipation of unpredictable risks.

"In 2024, we have to predict unpredictable predictions. We are optimistic, but we must have a mindset that we cannot predict. So, our message to the retailer is business extensification," said Roy in Jakarta, quoted on Friday, January 19.

Roy said that although his party is still optimistic about the projected retail growth in this election year, it is around 3.7-3.8 percent on an annual basis or year on year (you). However, he assessed that the risk of economic turmoil still haunts retail.

This is because geopolitical tensions in the Middle East and conflicts in the Red Sea have threatened the turmoil in world oil prices. This condition risks the supply and price of goods so as to reduce people's purchasing power.

"Ekstensification takes contingency steps when unpredictable occurs. So, our message to the retailer is business extensification, don't just intensify it, business expansion should not just be retail," he said.

In addition, Roy also appealed to retailers who experience stagnation to start implementing efficiency strategies. For example, by reducing the scale of outlets to be more efficient.

"The retail ones are well maintained, the retail ones are not good, yes, reduce the size, not another 5,000 meters (square). That makes it only 2,000-3,000 meters," he said.

Meanwhile, Roy said a number of factors needed to be maintained to maintain retail performance in 2024 to match projections.

First, the government needs to maintain political conduciveness during the democratic party. Popular, fiscal and monetary policies need to be maintained as well as possible to support a conducive situation.

However, Roy assessed that the Indonesian bank's interest rate policy at the level of 6 percent was also considered to be at risk of increasing bank credit interest to reduce consumption in the community.

In addition, the government is also considered necessary to maintain food supply and prices. This is because these two factors will have a direct effect on the inflation rate and people's purchasing power.