Courts, the Singapore-based retailer of electronics and furniture, will be joining the growing list of foreign retailers tapping the Indonesian market when it opens its first store in 2014.
The retailer, which operates 70 stores in Singapore and Malaysia, is seeking to raise around S$137 million (US$112 million) in an IPO in Singapore to fund its expansion in Indonesia. Courts plans to open 10 stores in Jakarta within five years, according to CEO Terry O’Connor.
Indonesia, being the most populous country in southeast Asia, has been attracting many international retailers, such as Carrefour of France, Lotte of South Korea and Giant of Hong Kong.
From 1999 through to the end of 2011, Indonesia’s annual growth soared from zero to 6.5 per cent, increasing the number of middle-class consumers by 50 million to over 130 million, according to the World Bank.
O’Connor said Courts will choose a big box format for its entry into Indonesia to create a statement for the retail brand.
Furniture retailer Ikea of Sweden will also enter Indonesia in 2014 in partnership with local retailer PT Hero Supermarket. However, Courts is confident there’s enough room in the market for all players to compete.
“There will be changes and turbulence in the market over the years, but this certainly seems to be the start of a buoyant period of consumerism for Indonesia,” O’Connor said. “The growth of the market is enough to accommodate more than a few players.”