JAKARTA, INDONESIA - IKEA's franchise unit Inter IKEA Systems B.V. signed a seven-year franchise deal with retailer PT Hero Supermarket to operate IKEA stores in Indonesia, according to the Jakarta Post.

IKEA already has franchises in Malaysia; and PT Hero, one of Indonesia's largest retailers, has been operating IKEA franchises in Hong Kong and Taiwan since 2003.

The fast-growing Indonesian market represents the four-largest consumer market, with 240 million people. Neighboring Malaysia and Philippines are major producers of furniture and other wood products.