Alfamart and Indomaret closures unrelated to Red and White Cooperatives
Suroto, chairman of the Association of Strategic Socio-Economic Cadres (AKSES), said claims linking the closure of some Alfamart and Indomaret outlets to the Red and White Village Cooperatives (KDKMP) are unfounded. He stated the issue is more related to zoning regulation violations, land use planning, and alleged monopolistic business practices.
Suroto noted that modern retail networks like Alfamart and Indomaret have expanded massively, reaching narrow alleys and rural areas. The two companies reportedly have over 40,000 outlets across various regions.
However, he pointed out that Ministry of Trade Regulation No. 18 of 2022 limits any single company to a maximum of 150 outlets. Additionally, modern retail outlets must comply with local government zoning and land use regulations.
‘Land use regulations and anti-monopoly provisions are mandated by law to protect the public and ensure economic fairness,’ Suroto stated on Thursday (28 May).
He explained that zoning rules are designed to provide space for traditional shops and non-chain retailers to thrive amid modern market expansion. He added that similar policies are strictly enforced in several developed nations in Europe and the United States.
Suroto also referenced Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. He said the regulation aims to prevent large-scale businesses from dominating the market and potentially harming the public.
‘If left unchecked, large businesses can set prices, dictate consumer patterns, and stifle small enterprises. At a certain point, they can even influence and buy into the market rules themselves,’ he said.
Suroto also explained that the Red and White Cooperatives were established as a distribution channel for essential goods directly linked to manufacturers or product principals. He said KDMP aims to balance the market and act as a corrective measure against monopolistic and large-scale business dominance.
He added that all KDMP operations, including minimarket outlets, are owned by local village or urban community members. This allows the community to directly control operations and benefit economically.
Suroto cited Singapore’s NTUC FairPrice cooperative, which has successfully become a dominant minimarket chain with a large market share compared to private retailers. Originally focused on minimarkets, it has since expanded into sectors such as finance, construction, and transport services.
Therefore, Suroto stressed that Red and White Village Cooperatives are a community instrument to control markets long dominated by conglomerates. He noted the program’s emergence may disturb certain parties, including some bureaucrats accustomed to granting special favours to specific large business groups.