Retail in Asia

In Markets

Indonesia court overturns Carrefour monopoly ruling

An Indonesian court yesterday overturned a regulatory body finding that the local unit of Carrefour SA violated anti-monopoly laws, and reversed the commission’s ruling that the retail giant must sell its majority stake in a local retailer.

The decision will give a fillip to Carrefour’s aim of competing for market share in Indonesia, where a vast consumer base is supported by rising middle-class incomes and an economy that is expanding at one of the fastest rates in the world.

Overall retail sales in Southeast Asia’s largest economy are likely to rise to more than USD82 billion by 2014 from an estimated USD42 billion last year, analysis firm Business Monitor International said in a recent report. But modern retailers like Carrefour account for only around a third of the overall retail market, according to industry data, as many of the country’s 240 million people buy rice, vegetables, cigarettes and other goods at traditional markets and street stalls.