•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

German retail giant Metro Group will open its wholesale store chain Metro Cash & Carry in Indonesia next year as it looks to tap into the fast-growing Indonesian consumer market.

“Asia clearly represents a dynamic and potential growth market, and we are quickly focusing on expansion in the region. We are anticipating growth in the region by incorporating Metro Cash & Carry to the Indonesian market,” Eckhard Cordes, chief executive of Metro Group, said in a statement on Tuesday.

Depending on economic stability, the company said in the statement, it might establish 20 stores in Indonesia starting in 2012 as it was impressed with the pace and prospects of growth.

“With a population of more than 200 million and domestic consumption growing rapidly, Indonesia offers strong potential for our wholesale store chain,” said Frans Muller, who oversees Metro Cash & Carry in Asia.

“Our strategic decision to enter this promising market shows our ambition to build an organic business in Southeast Asia.”

The company is finalizing its licensing with the Trade Ministry and looking for locations.

Indonesia will be Metro Group’s 34th country and the 31st nation in Metro Cash & Carry’s portfolio. In the last 15 years, Metro Cash & Carry has established 80 stores in China, India, Japan, Vietnam and Pakistan.

The world’s No. 4 retailer told Reuters it was increasing its investment in emerging markets after it beat profit forecasts last year. It reported 2010 earnings before interest and tax of 2.42 billion euros ($3.4 billion), exceeding its forecast of 2.32 billion euros.

With 60 percent of Indonesia’s economic growth driven by consumption and a healthy retail outlook, the domestic market has proven attractive to investors.

Matahari Putra Prima, the country’s largest homegrown department store, has forecast its sales to increase 30 percent to Rp 10 trillion ($1.15 billion), fueled by its Hypermart chain. It plans to open at least 22 new Hypermart stores in the country this year.

South Korea’s Lotte Group and US retailer Wal-Mart had approached Matahari about possibly acquiring Hypermart, but Matahari decided to retain its unit. Matahari and the Jakarta Globe are affiliated with Lippo Group.