Bloomberg News

Hero Surges to Highest in at Least 20 Years: Jakarta Mover

March 27, 2012

PT Hero Supermarket (ETWA), Indonesia’s third-largest general retailer by market value, surged the most in at least 20 years after it agreed with Inter Ikea Systems BV to open and operate Ikea stores.

Hero gained 20 percent to close at 23,250 rupiah, the highest close since at least Feb. 17, 1992. The Jakarta Composite index gained 1.2 percent.

Hero said in a statement yesterday it signed a franchise agreement to open and operate Ikea stores starting 2014 until 2021, with an option to add more stores after the term ended.

Companies like Hero and Ikea, the world’s biggest furniture retailer controlled by Ingvar Kamprad, Europe’s richest man, may benefit from an economy that grew last year at the fastest pace since before the Asian financial crisis as rising investment and domestic spending countered a slowdown in export demand due to Europe’s debt crisis.

Indonesia’s growth in 2011 was the fastest since 1996, according to International Monetary Fund data. The $707 billion economy has expanded more than 6 percent for five straight quarters, showing it’s weathering a decline in global demand that has hurt growth across Asia.

To contact the reporter on this story: Femi Adi in Jakarta at fadi1@bloomberg.net

To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net


China's Killer Profits
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus