PT Midi Utama Indonesia (Alfamidi) Sells Majority Stake in Lawson to PT Sumber Alfaria Trijaya (Alfamart)

Jakarta – PT Midi Utama Indonesia Tbk (Alfamidi) announced plans to sell a 70% stake in PT Lancar Wiguna Sejahtera (LWS), the operator of Lawson stores in Indonesia, to PT Sumber Alfaria Trijaya Tbk (AMRT), known by the Alfamart brand. The transaction is valued at IDR 200.45 billion and was officially announced on May 14, 2025, drawing significant attention in the national retail sector.

Declining Lawson Performance as the Main Factor

One of the primary reasons for this divestment is Lawson’s decreasing contribution to Alfamidi’s revenue. Suantopo Po, Corporate Secretary of Alfamidi, stated that Lawson’s contribution to the company’s net revenue was only 6.8% in 2024 and dropped to 4.3% in the first quarter of 2025. “Revenue from LWS is insignificant compared to the company’s total revenue,” Suantopo revealed in a disclosure to the Indonesia Stock Exchange.

Lawson Store Closures and Their Impact

Throughout 2024, Alfamidi closed approximately 300 Lawson stores. These closures were due to several factors, including non-renewal of leases by property owners and changes in the surrounding environment that negatively affected store performance. Suantopo explained, “Store closures can occur because the land or building owners do not renew leases, or due to changes in the area’s potential, making store operations no longer profitable.”

Divestment Strategy and Focus on Core Business

The proceeds from the sale of Lawson shares will be allocated for Alfamidi’s operational needs and capital expenditures to expand its network and increase business capacity. The company aims to open 200 new stores in 2025, with a total capital expenditure of IDR 1.5 trillion. “With this transaction, the company can focus more on its core retail business portfolio and is expected to improve financial performance in the future,” added Suantopo.

Alfamart Takes Over Lawson, Drives Synergy and Efficiency

Alfamidi’s move to divest its majority stake in Lawson is a strategic effort to concentrate on its core business and improve financial performance. With plans for new store expansion and operational efficiencies, Alfamidi strives to strengthen its position in the national retail market.