Indonesian Political, Business & Finance News

Alfamart (AMRT) Responds to the Presence of Kopdes Merah Putih

| Source: CNBC Translated from Indonesian | Business
Alfamart (AMRT) Responds to the Presence of Kopdes Merah Putih
Image: CNBC

Two modern retail issuers, PT Sumber Alfaria Trijaya Tbk (AMRT) and PT Midi Utama Indonesia Tbk (MIDI), have spoken out regarding the presence of the Kopdes Merah Putih (KDMP), a government programme under President Prabowo Subianto. Despite having business models deemed similar, both companies have confirmed they have yet to feel any material impact on their operations or business expansion plans.

AMRT management views the presence of KDMP as a positive government initiative to strengthen the rural economy and support national food security. The company considers that every business actor has a different business model, segmentation, and target market, allowing them to complement each other in meeting the needs of the community. “To date, there has been no material impact on the Company’s operational performance caused by the presence of KDMP. In line with this, there have been no store closures resulting from the existence of KDMP,” as stated in the IDX information disclosure, cited on Friday (5/6/2026).

From the supply chain side, AMRT confirmed that the establishment of KDMP has not had a material influence on the company’s supply chain activities. Consequently, distribution operations and the fulfilment of merchandise are still running normally as usual. To maintain store growth in rural areas, AMRT relies on a strategy of improving customer service. This is carried out by providing products that suit consumer needs, setting competitive prices, and implementing promotional programmes relevant to local market characteristics. The company also assesses that long-term competitiveness will be largely determined by the ability to provide the best service to customers. Therefore, the company’s primary focus remains directed at improving service quality and the consumer shopping experience. Regarding potential cooperation with KDMP, AMRT revealed that to date it has no strategic cooperation with the cooperative’s managers. There are also no ongoing partnership plans or exploratory talks.

Meanwhile, MIDI, which is still within the same Group, also expressed a similar view regarding the presence of KDMP. The company considers that every business actor has a different business model, segmentation, and target market, allowing them to complement each other in meeting the needs of the community, while continuing to support government programmes and policies. “There have been no store closures caused by the presence of KDMP. Up to now, there has been no material impact on the Company’s supply chain caused by the establishment of KDMP,” said MIDI management. To maintain growth in rural areas, MIDI focuses on improving service quality to consumers. This strategy includes improving store comfort and cleanliness, providing complete products according to customer needs, competitive pricing, and optimising delivery services. Regarding the possibility of cooperation with KDMP, MIDI stated that to date there has been no communication, plans, or strategic cooperation exploration with the cooperative’s managers.

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