Company’s Brief History
PT Matahari Putra Prima Tbk (“Company”) was established in Republic of Indonesia on March 11, 1986 based on the Notarial Deed of Budiarti Karnadi, S.H., Public Notary, No.30 dated March 11, 1986 and was legalized by the Ministry of Justice Republic of Indonesia based on the Quotation Letter from the List of Decrees of the Minister of Justice dated July 26, 1986 No. C2-5238.HT.01-01.Th.86. The Deed was announced in the State Gazette of the Republic of Indonesia No.73 dated September 10, 1991, Additional State Gazette of the Republic of Indonesia No.2954. The Article of Association Deed has been updated several times with the latest update was stated at Deed of Statement of Meeting Decision by Sriwi Bawana Nawaksari, S.H., M.Kn, Public Notary, No.04 dated June 11, 2019. The change has been reported to Ministry of Law and Human Rights of the Republic of Indonesia through Letter of Acceptance of Change Notification No. AHU-0091783.AH.01.11 Tahun 2019 dated June 13, 2019.
The Company conducts its key business operation in the form of hypermarket and supermarket chain providing various products such as daily necessities products to electronics.
By the end of 2019, the Company operated Hypermart, Primo, Foodmart, Hyfresh, Boston Health & Beauty, FMX dan SmartClub in more than 150 location in Jakarta and other cities in Indonesia.
About the Company
Established in 1986, PT Matahari Putra Prima Tbk (“Company/MPPA”) has successfully become a prominent modern retailer in Indonesia. The divestment of non-core assets at the end of 2012, poised MPPA to focus on its core FMCG modern retail business in order to capture and serve the large potential consumer market. Today MPPA has become a shopping destination and successfully operates more than 222 stores across Indonesia supported by its own extensive distribution network.
The Company’s strategy to becoming a multi-format FMCG operator continued to unfold. In 2015, strategic Hypermart locations were remodeled to the new concept as well as new stores being built following this new concept.
The Company also launched Primo premium supermarket, FMX convenience store concept and revamped Boston Health & Beauty format.
The Company made great strides at addressing its long term positioning with the most critical change being the implementation and switch to the cost method of inventory measurement technique in the 3rd quarter of 2016. This milestone was positioned to address the final obstacle impacting comparable sales which was the pricing factor, that was addressed in 2017 with the launch of its pricing strategy. It also placed MPPA in a position to better understand the profitability of its assortment thus enabling long term margin management/control at the SKU level while simultaneously addressing the pricing matters.
Within the continued, challenging market condition and increased competitive environment in 2018, the Company aligned its retail business strategy. It reaffirmed its key focus toward consumer retailing through its Hypermart and Foodmart formats, and reduced its exposure from the large, unprofitable B2B business. The key focus strategy is supported by new competitive pricing on daily basic necessity products, while the Company continues its cost efficiency efforts on all expenses, inventory management and more efficient store formats
The Company’s focus toward consumer retailing continued in 2019. In addition to the relaunching of Hypermart, Primo and Foodmart stores adapted to market condition and consumers’ needs, the Company also strengthened its retail role by launching Hyfresh, a community- supermarket concept, with arrays of daily household products being offered at competitive prices in the market. The development of Offline to Online (O2O) online business through Hypermart Mobile application was further developed and strengthened where all Hypermart and several Primo stores within Greater Jakarta have been integrated into Hypermart Mobile’s ecosystem, in which it allows consumers to order products within 10KM to be delivered within with Grab Delivery.