Alfamart and Peers Asked to Halt Expansion into Rural Areas; Retail Association: We Always Seek to Comply with Regulations
JAKARTA — The Indonesian Retail Business Association (Aprindo) has stated that every plan for opening or expanding outlets, including in rural areas, will follow applicable rules and regulations in each respective region.
The Chairman of Aprindo emphasised that all association members, including himself, must comply with regulations before conducting business expansion.
“As Aprindo’s Chairman, I request that all members, if they wish to open or expand outlets, must follow the regulations applicable in that region,” said Solihin, who also serves as Director of Corporate Affairs at Alfamart, in a statement to Kompas.com on Friday (27 February 2026).
According to him, modern retail operators will not proceed if the area no longer permits the development of new outlets.
“For Alfamart’s expansion, whether the region permits it or not, we always seek to follow the rules applicable in that region. That is the point,” he stated.
This statement responded to an appeal by Cooperation Minister Ferry Juliantono requesting modern retailers such as Indomaret and Alfamart to halt expansion into rural areas, pending the development of Village Cooperatives/Merah Putih Cooperatives (KDMP).
The government emphasised it does not object to modern retail outlets already in operation, but reminded retailers to consider fair competition with small convenience shops and traditional market traders when expanding into villages.
“Existing modern retailers, we respect them, no problem. But regarding the desire for expansion, especially into villages, please remember the others. There are areas that are also the people’s rightful domain too,” said the Minister during a press conference at his office in Jakarta on Thursday (26 February 2026).
He explained this measure aims to create a fair competitive environment between modern retailers and small businesses, particularly small convenience shops and traditional market traders.
This is especially important as the presence of modern retailers in rural areas has eroded the number of small convenience shops and traditional market traders.
Based on data from the Indonesian Street Vendors Association (APKLI), the number of small convenience shops has declined by 2.2 million units during 2007–2025, and 3,500 traditional market traders decreased during 2007–2015.
“We also want to compete and compete fairly as long as the arena is also fair. But if it is not fair and not healthy, and then we ask our friends from the street vendors association to compete with modern retailers, it is simply impossible for them to win,” the Minister emphasised.