JAKARTA – PT Modern International Tbk (MDRN), the franchisee of 7-Eleven in Indonesia held a public expose at Matraman regarding the shutting down of 7-Eleven outlets. The Board of Commissioners and Board of Directors attended the public expose.
Both PT Charoend Pokphand Restu Indonesia and PT Modern Sevel Indonesia, a subsidiary of PT Modern International Tbk has signed the Conditional Purchase Agreement (CPA) for 7-Eleven Indonesia, but the Master Franchisor Seven Eleven Inc in U.S must granted the approval for this transaction. However, Charoend and Seven Eleven Inc had negotiated and canceled the transaction.
“We don’t know the model and we don’t have the capacity to tell you, because we do not participate in the negotiation. Therefore, you can contact Charoend Pokphand or 7-Eleven Inc," explained Donny Sutanto, Commissioner of PT Modern International Tbk during the public expose today.
Since 2015, Seven Eleven have been closing down its stores one by one until June 30th, 2017. There are approximately 1,200 – 1,300 staffs that took the impact from shutting down of the outlets.
In 2009 and 2010, people’s response to 7-Eleven Store in Indonesia was great and it became the talk of the town. Then, 7-Eleven management made an investment by opening stores aggressively and building infrastructure with huge cost. Seven Eleven Indonesia also revealed they have a fast food kitchen that can supply up to 400 outlets.
Donny takes this phenomenon as a lesson for the company and he stated, “We might be a little too aggressive”. He admitted that the company was too focused on 7-Eleven while other potential business line can grow, such as Medical Imaging and RICOH copy. All of Modern International’s asset will be utilized for other business line, such as sale of land and building.
Modern International also stated on the public expose sheet that there's not enough support and cooperation from the Master Franchisor 7-Eleven Inc., by applying a very burdensome requirement such as giving a validity period of franchisee for one year to the investors to solve the current problem. IDNFinancial's team have contacted the Seven Eleven Inc (USA) for clarification, but until now there's still no reply. (LM)