Hero sells IKEA Sentul City branch

Hero Supermarket sold its IKEA Sentul City branch to Archipelago Property Development (APD) for Rp280 billion. Hero explained that it will use proceeds from the sale to pay loans, support working capital as well as finance the company's operations.

APD is Hero’s affiliate company. The two companies share the same board of directors and commissioners and are controlled by Jardine Matheson Holdings.

Hero ensured that IKEA Sentul City property will still be hosted by the company’s subsidiary, namely Rumah Mebel Nusantara (RUMAH), based on a lease agreement with APD. 

The biggest retail company in Indonesia described the current trade situation as challenging due to the pandemic. Hero's balance sheet size has declined significantly over the last 12 months with a net cash of Rp168 billion and net debt of Rp463 billion as of 31 December, 2020

Therefore, the company announced in May 2021 that it would change its business approach by increasing its investment in IKEA, Guardian and Hero Supermarket. In the same month, Hero began to shift away from Giant and close the branches.