The retail landscape in Indonesia is dominated by the familiar red-and-yellow glow of Alfamart. Owned by PT Sumber Alfaria Trijaya Tbk, Alfamart has evolved from a single grocery store in 1999 into a retail behemoth with over 20,000 outlets. Central to this aggressive expansion is its franchise business model, which democratizes retail ownership by allowing individual investors to tap into a proven, high-traffic system.
As of 2026, the Alfamart franchise model remains one of the most sought-after "passive" or semi-passive investment opportunities in Southeast Asia.
Read Also : Fundamental Analysis of Global Mediacom Tbk (BMTR)
 |
| Alfamart |
1. Core Concept: The Community Store
Alfamart positions itself as a Community Store. Unlike hypermarkets that require a "destination trip," Alfamart is designed to be within walking distance of residential clusters. Its business model relies on high frequency and convenience. By offering daily necessities—from milk and instant noodles to digital services like bill payments and money transfers—it ensures constant foot traffic regardless of economic fluctuations.
2. Three Main Partnership Schemes
Alfamart offers three distinct paths for potential franchisees, catering to different capital levels and property availability:
A. New Store Scheme (Gerai Baru)
This is for investors who have a strategic location (owned or leased) but no existing business.
Investment: Ranges from Rp300 million to Rp500 million, depending on the number of racks (9 to 45 racks).
Inclusions: Franchise fee (5 years), shop signs, electrical installation, AC, point-of-sale (POS) systems, and initial promotion.
Land Requirement: Minimum sales area of 30–100 $m^2$ (total land approx. 120–250 $m^2$).
B. Conversion Scheme (Gerai Konversi)
Designed for owners of existing traditional "mom-and-pop" shops (warung) or local minimarkets who want to upgrade to the Alfamart brand.
Unique Benefit: Existing merchandise and shelving can often be "bought back" or credited toward the investment cost, reducing the initial capital outlay.
Goal: To modernize local commerce while maintaining the owner's existing location.
C. Takeover Scheme (Gerai Take Over)
Investors purchase an already operational Alfamart outlet directly from the company.
Investment: Typically starts from Rp800 million.
Advantage: The store already has a proven track record of sales, an established customer base, and active permits. It eliminates the "startup" risk but requires higher upfront capital (Goodwill).
3. Revenue Streams & Cost Structure
The profitability of an Alfamart store isn't just about selling snacks. The model includes several "hidden" revenue streams:
Retail Margin: Profit from the sale of fast-moving consumer goods (FMCG).
E-Services: Commissions from "Payment Points" (PLN bills, BPJS, train tickets, and e-wallet top-ups).
Tenant Sub-leasing: Revenue from small vendors (e.g., kebab stands or fried chicken stalls) that rent the front terrace.
In-store Advertising: Fees for placing promotional materials within the store.
The Royalty Fee System
Alfamart uses a progressive royalty system based on monthly net sales (pre-tax). This ensures that smaller, struggling stores pay less, while highly successful ones contribute more to the brand's ecosystem:
| Monthly Net Sales | Royalty Rate |
| Rp0 - Rp150 Million | 0% |
| Rp150 - Rp175 Million | 1% |
| Rp175 - Rp200 Million | 2% |
| Rp200 - Rp250 Million | 3% |
| Over Rp250 Million | 4% |
4. Why It Works: The "Hands-Off" Appeal
The primary reason investors choose Alfamart is the management support. The franchisor handles:
Supply Chain: Automated replenishment via centralized distribution centers.
Marketing: National-scale TV, digital, and print promotions.
Human Resources: Recruitment and training of the 5–8 employees needed per store.
Technology: A robust IT system for inventory tracking and financial reporting.
5. Risk and ROI
The Break-Even Point (BEP) for a typical Alfamart franchise is estimated between 3.5 to 5 years. While the brand is strong, the "location-is-everything" rule applies. A store's success depends heavily on population density, competitor proximity (Indomaret), and ease of parking.
Conclusion
Alfamart’s business model is a masterclass in scalable logistics and brand consistency. For the investor, it offers a "business-in-a-box" that turns a piece of real estate into a high-utility community hub.