Tesco has reportedly been looking at ways to enter Indonesia in the wake of its withdrawal from Japan.

Sources told the UK's City AM newspaper that the retailer has been investigating ways of gaining a foothold in the country for more than a year.

Last week, Tesco announced it would sell its 129 stores in Japan after eight years in the market.

A move into Indonesia would set it head to head with its main rival in the region, French supermarket chain Carrefour, which entered the increasingly-wealthy country in 1998.

A spokesman for Tesco refused to be drawn on the reports. "We don't comment on speculation," he told just-food today (8 September).