In a recent statement to Bursa Efek, its director, Chandra Wijaya, said the decision was made given the limited resources to support operations as well as the sale and purchase of its shares.
The company reportedly agreed to sell the franchise to PT Charoen Pokphand Restu Indonesia, but this was called off after both parties failed to reach a consensus on certain matters.
There were some 175 7-Eleven outlets operating in Jakarta until September last year.
At the end of 2016, more than 20 stores had begun closing down as they were not profitable.
The chain outlets was first introduced in 2008 by PT Modern Internasional’s subsidiary, PT Modern Sevel Indonesia.
However, PT Modern Internasional’s first quarter results for 2017 revealed that 7-Eleven stores incurred a 37.17% decline in total sales.
Indonesian Trade Minister Enggartiasto Lukita denied allegations that the shutdown of 7-Eleven’s operations displayed a weakness in the Indonesian retail sector as many other 24-hour retail outlets were still operating.
He said the shutdown was due to internal problems and losses experienced by the company.
Enggartiasto said he would meet the management to obtain more information on the closure of the franchise outlets.