Djoko Susanto charts Alfamart’s growth from humble grocery stall to sprawling retail empire
Sumber Alfaria Trijaya Tbk (Alfamart) founder Djoko Susanto came from very humble beginnings. The self-made Indonesian billionaire started his entrepreneurial journey at the tender age of 17, selling groceries at his family’s 560 sq ft stall inside a traditional mall in Jakarta.
Today, the 71 years-old entrepreneur has grown Alfamart to a booming business, with 17,000 outlets across Indonesia and the Philippines.
“It has been 54 years since the day I managed my family’s stall. Today, I am here, achieving what some would say is ‘impossible’. Instead of ‘impossible’, let’s call it ‘unexpected’,” says Djoko.
Recognised for his successful Southeast Asian business that contributes to the economy and community in the region, Djoko has been named this year’s EY Asean Entrepreneurial Excellence Award. Previous winners include Dennis Uy of Udenna Corp; Tony Fernandes of AirAsia; and Stephen Riady, executive chairman of OUE.
“From humble beginnings in running a modest grocery stall to leading a large retail business chain, Mr Susanto’s entrepreneurial journey and commercial success is remarkable and inspiring,” says Max Loh, Singapore and Brunei Managing Partner, Ernst & Young.
“With his astute business acumen and determination, Mr Susanto has grown the company to more than 16,000 stores, which hires over 130,000 people across Indonesia and the Philippines.
“Beyond the socio-economic impact made in terms of job creation, the company also gives back to the community, for example, through providing support and relief during the Covid-19 pandemic,” adds Loh.
Source of happiness
Djoko is generous to share the win with his employees, whom he has entrusted to run and grow the business to make Alfamart what it is today. “I am humbled and gratified to accept this honour on behalf of more than 130,000 employees of Alfamart from our warehouses, stores and offices that have enabled our company to create a success story in the industry,” he says.
Djoko has always been a resourceful entrepreneur. For instance, when he was tending his family’s grocery stall — called Sumber Bahagia (meaning “source of happiness”) — he saw an opportunity selling cigarettes to cater to the increasing number of Indonesians who smoke.
This proved to be a very profitable venture, says Djoko. Business was brisk, as frequent customers grew from individual smokers to small wholesalers and retailers. The decision paid off in a bigger way than the enterprising shopkeeper could have imagined, catching the attention of Putera Sampoerna, one of the nation’s largest makers of clove and tobacco cigarettes.
“We met in the early 1980s and agreed in 1985 to build 15 similar stalls in several areas of Jakarta. The venture was successful and inspired us to open a discount supermarket store named Alfa Toko Gudang Rabat. The operations of the first Alfamart store commenced on Oct 18, 1999. That was Alfamart’s historic day,” recalls Djoko.
After years of gradual expansion, the company started its rapid growth in 2002 upon acquiring 141 Alfaminimart stores. Seven years later in January 2009, with more than 3,000 outlets across the country, Alfamart debuted on the Indonesia Stock Exchange, the first firm to do so that year. Currently, the company has a market capitalisation of about US$4 billion ($5.4 billion).
While it is certainly an impressive feat, Djoko says there is no outstanding answer to questions about his secret to success. Instead, there is only one simple answer — it is a combination of intuition, hard work and focus. “The more you tap and put trust in [this combination], the stronger it will become over time,” he adds.
‘Always look for opportunities’
Djoko says his biggest challenge in building the business is the ever-changing world. “Nothing lasts forever in this life. Change can happen at any time and in surprising ways — while there are bad events that we can predict, there are also those that are completely unpredictable.
“Therefore, in order for a business to survive and thrive in the long term, entrepreneurs must be able to always look for opportunities,” says Djoko.
The pandemic, for example, has created many market opportunities, he adds. “Those who are struggling and are experiencing failure should not give up and instead take it as a learning opportunity. Through the failure process, we dare to take risks and challenged ourselves to be more tenacious and daring, willing to fight to move forward. ”
Being a traditional brick-and-mortar company does not mean that Alfamart does not innovate. In fact, the company has introduced various initiatives and new business verticals since opening its doors to customers over two decades ago, while still being true to its core business. For instance, it launched its first virtual store with augmented reality technology in 2016 and an online grocery app called Alfagift in 2019.
In 2020, the company further diversified by developing new concepts called Alfaexpress and Alfa X. Alfaexpress is a modern convenience store providing products with local flavours, targeting locations such as stations, rest areas, airports and hospitals. Meanwhile, Alfa X is a co-working space aimed at connecting people and providing a collaborative environment.
The company has also introduced Bean Spot, its brand of coffee corners. Bean Spot products include ready-to-drink, ready-to-eat and in-house bakery items.
While Alfamart continues to pursue its business growth and expansion, it also contributes back to the community by implementing initiatives to support employee welfare such as providing masks, vitamins and hand sanitisers.
The company also waived rental fees in May and June last year, aside from providing subsidies to small and medium enterprise tenants, food packages, self-isolation facility equipped with medical equipment and a paramedic team, as well as oxygen concentrators to support the government’s efforts to tackle the pandemic.
Sharing his personal vision for the company, Djoko says Alfamart should strive to continue becoming a leading retail distribution network owned by the wider community, oriented to empowering small entrepreneurs.
It should also continue to meet consumer needs and expectations, as well as being able to compete globally. “I also hope that Alfamart can contribute more to society, as what we have received today also comes from the community,” he says.
Photo: Alfamart
