More Than Half of Jakarta’s 106 7-Eleven Stores Lack Permits

More Than Half of Jakarta 7-Eleven Stores Lack Permits: Jakarta Tourism Agency

By Lenny Tristia Tambun on 6:12 pm January 4, 2014.
More than half of Jakarta’s 106 7-Eleven convenience stores have not obtained proper permits, according to the Jakarta Tourism Agency. Sixty of the stores did not have correct documents: 29 did not have permits to operate and 31 lacked permits to sell retail goods in addition to food.“The agency has sent a letter to the Public Order Officers [Satpol PP] to seal those 31 outlets,” Jakarta Tourism Agency head Arie Budhiman said on Friday.

According to the law, businesses such as convenience stores, minimarkets, department stores and wholesale outlets require permits known as IUTMs in order to sell retail goods.

Indonesia’s 7-Eleven franchises are operated by Modern Putra Indonesia, a subsidiary of photographic, electronics and telecommunications product retailer Modern Internasional.

Satpol PP has asked several outlets to cease operations but they have remained open, including a store on Jalan Budi Kemuliaan in Tanah Abang, Central Jakarta, which has remained open with a sign in the window saying it was sealed by public order officials.

Jakarta Governor Joko Widodo expressed annoyance over the permit issues.

“If a place has been sealed, but it still operates normally, then it shows that we have no authority,” he said on Friday.”That means we are being insulted.”

Joko attributed the open flouting of regulations to the city administration’s lack of control in the field.

“Law enforcement must be stronger,” he said. “If it is sealed, then close it. Or if they do not want to, then knock it down.”

Modern Internasional spokeswoman Neneng Sri Mulyati told the Jakarta Globe in September that the stores did not require additional permits.

“The business that we ran from the first [day] is what we are running right now,” she said. “Our main business is fresh food and beverages. Yes, we have some convenience items for urgent needs, but [they are] a small percentage only.”

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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