Sumber Alfaria Trijaya AMTR 2014

Background

Based on central statistic bureau of indonesia, the average monthly expenditure per capita for food product in 2014 was 356,435 per person. If we calculate the expenditure of entire population of indonesia the calculation is IDR 365,435 x 252,2 million = IDR 97,94 trillion. That mean the whole population had spent more than IDR 97 trillion a month for food.

The number is possible not 100 % accurate with the real spending. But it could be used as a supposition.

AMTR

The company was established on 1989, based on Notarial deed no. 21 dated February 22, 1989. The company is engaged in retail distribution of consumer product. The company started to build mini-market networks since 2002, the networks comprises its own mini-market and franchise agreement. In 2014 the company had 6.939 units direct ownership networks and 2.922 units franchise agreement.

The company has subsidiaries both in domestic and oversea. Alfamart Retail Asia pte Ltd is its subsidiary in Singapore which has been operating in retail distributor of consumer product. The other subsidiaries are Midi Utama Indonesia, Sumber Indah Lestari (SIL) and Sumber Medika lestari (SML).

SIL and SML are operating in medical segment, trading of medical equipment and pharmacy respectively.

Sumber Alfaria Trijaya Tbk is owned by Sigmantara Alfindo, with 54.02 % share. The company had rental agreements with its clients for rent its stores and buildings. The cost is paid in advance for period of 12 months until 240 months. Once the rental agreement is expired, the company usually does the renewal of the agreement.

\The rental cost is amortized in its operation costs; in 2014 the amortization of prepaid rent in selling and distribution expense was IDR 535,729 million. And the amortization of prepaid rent in general and administrative expense is IDR 9,833 million.

In 2014 the company seemed advance its long term loan, the company increased its networks both its direct ownership and franchise agreement. In 2014 the direct ownership was advanced from 6,051 units in to 6,939 units and in 2013 its franchise agreement was advanced from 2,506 units in to 2,922 units. As the result of that the company was able to raise its revenue more than 19 % up in 2014 compared to its revenue in 2013. The number of direct ownership mini-market is greater in its quantity than number of franchised mini-market.

71 % of total income in 2014 was dominated by food product, consumer may possibly prefer to purchase food product in mini-market than in conventional shop. In 2013 the portion of revenue of food product was 70.5 %.