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Why Alfamidi Earned 14 Trillion: Smart Strategy Behind Indonesia’s Mini-Supermarket

Discover how Alfamidi, a subsidiary of Alfamart, built a 14 trillion rupiah business with a unique strategy, even though its founder never finished elementary school.

The Growing Grocery Market

Indonesia’s minimarket sector has consistently shown impressive growth. In 2019, the market was valued at $140 billion (Rp 2.1 quadrillion) and continued to expand in 2022. While hypermarkets and traditional markets declined, minimarkets like Indomaret, Alfamart, and Alfamidi thrived. Java dominated with 69% contribution, while Bali and Nusa Tenggara regions grew by 7%.

Why Stores Compete Side by Side

Hotelling Theory

When businesses offer similar products, they cluster together to maximize consumer reach. This is why Indomaret and Alfamart often sit just meters apart. Shoppers then choose based on convenience, pricing, or brand preference.

Game Theory & R&D Costs

Instead of conducting separate expensive market research, competitors often rely on each other’s data. Once one brand opens a store, rivals follow suit, ensuring they don’t lose potential market share.

The Birth of Alfamidi

Founded in 2007 by Djoko Susanto, Alfamidi was created to serve a different consumer behavior segment. Djoko’s journey is inspiring—he dropped out after first grade, managed a small grocery store, suffered a devastating fire in 1976, but later partnered with Putera Sampoerna to build the Alfa brand. By 2014, he ranked among Indonesia’s richest, proving that entrepreneurs are made, not born.

Alfamidi’s Unique Selling Proposition (USP)

• Bigger store space compared to Alfamart
• Focus on fresh food, frozen products, and modern design
• Targeted at middle-class families who shop weekly, not just monthly

While Alfamart serves lower-ticket daily needs, Alfamidi is positioned for larger basket sizes and more frequent purchases. This segmentation explains why Alfamidi doesn’t need as many outlets to remain profitable.

Franchise & Investment Model

Becoming a Franchise Owner

Alfamidi expands through franchising:

• Investment ranges from Rp 300–500 million per outlet
• Franchise fee: Rp 45 million per 5 years
• Product range: 1,200–4,500 SKUs depending on package
• Investors can own the property, gaining both profit sharing and capital gain

Crowdfunding with Bizhare

Through Bizhare’s licensed crowdfunding platform, anyone can invest in Alfamidi from as little as Rp 1 million. Investors share 80% of profits while 20% is retained for business expansion. Profits are distributed quarterly, plus property appreciation offers long-term returns.

Risks to Consider

• Liquidity risk: Cash flow may not always be enough for payouts, mitigated by sinking funds.
• Competition risk: New competitors in the same area may reduce projections.
• Business risk: Changes in local demographics, economic downturns, or pandemics can affect performance.

Despite risks, Alfamidi’s model shows resilience by combining retail innovation, franchise scalability, and investment democratization.

Key Takeaways

Alfamidi proves that business success comes from understanding consumer behavior. By targeting a unique market segment, it grew into a 14 trillion rupiah company. With opportunities to join as a franchise owner or micro-investor, Alfamidi reflects Indonesia’s fast-evolving retail landscape.

If this business story inspired you, share your thoughts in the comments and let others learn from Alfamidi’s journey.

Labels: Finance

References

• Video: Belajar Kenapa ALFAMIDI Cuan 14 TRILIUN (CEO-nya Gak Lulus SD) #BedahBisnis
• Channel: Raymond Chin
• Watch on YouTube