Alfamart and Indomaret Store Closures Linked to KDKMP? Association Responds
Chairman of the Association of Strategic Socio-Economic Cadres (AKSES), Suroto, has dismissed claims linking the closure of Alfamart and Indomaret outlets to the Red and White Village Cooperative (KDKMP) as misplaced. He stated that the issue relates more to violations of zoning regulations, land use planning, and alleged monopolistic business practices.
Suroto said modern retail chains such as Alfamart and Indomaret have expanded massively, reaching narrow alleys and rural areas. The two companies reportedly operate over 40,000 outlets across various regions.
However, he noted that Ministry of Trade Regulation No. 18 of 2022 limits a single company’s ownership to a maximum of 150 outlets. Additionally, modern retail outlets must comply with local government zoning and land use regulations.
“Land use planning and anti-monopoly regulations are mandated by law to protect the public and ensure economic fairness,” Suroto said in a written statement in Jakarta on Thursday, 28 May 2026.
Suroto explained that zoning rules are designed to provide space for traditional shops and independent retailers to thrive amid modern market expansion. He added that similar policies are strictly enforced in developed European and US nations.
Furthermore, Suroto referenced Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. He said the regulation aims to prevent large businesses from dominating the market to the detriment of the public.
“If left unchecked, large businesses could set prices, dictate consumer habits, and eliminate small enterprises. At certain levels, they could even influence and buy into the market rules themselves,” he said.
Suroto also clarified that KDKMP was established as a distribution channel for essential goods directly linked to manufacturers or product principals. The cooperative is also intended to distribute government-subsidised items such as gas melon, SPHP rice, Minyakita, fertiliser, seeds, medicines, and other necessities to ensure targeted delivery, correct pricing, and quality.