Indonesian Political, Business & Finance News

Alfamart-Indomaret Network Expands to 44,366 Outlets Amid Government Review of Retail Licensing

| Source: CNBC Translated from Indonesian | Economy

Jakarta – The government is currently evaluating the licensing process for new modern retail outlets to ensure that traditional shops and small and medium-sized enterprises in villages have adequate business opportunities, whilst simultaneously supporting the Red and White Village Cooperative (Koperasi Desa Merah Putih) as a driver of rural economic growth.

Minister of Villages and Disadvantaged Regions Development Yandri Susanto affirmed that the government will halt the issuance of new licences for modern retail expansion into villages, rather than closing existing outlets. Cooperatives Minister Ferry Juliantono stated that the presence of modern retail in villages must still be respected, as it has provided substantial employment opportunities. However, regarding the issuance of new licences, he noted that consideration should be given to local conditions, particularly in rural areas.

Accordingly, the Red and White Village Cooperative is being promoted as the economic engine of villages to ensure that profits return to local communities.

In other words, future expansion of modern minimarket chains through new outlets, particularly in rural regions, may face more stringent restrictions. Exactly how significant has the growth of modern retail outlets been in recent years?

Alfamart and Indomaret Demonstrate Largest Growth

Alfamart and Indomaret remain the two modern retail networks with the most substantial expansion. According to data from PT Sumber Alfaria Trijaya Tbk’s presentation sourced from NielsenIQ, both continue to add outlets through 2025.

Alfamart increased from 20,120 outlets in 2024 to 20,925 outlets in the third quarter of 2025, an addition of 805 outlets equivalent to a 4.00 per cent increase. Indomaret also grew from 22,682 outlets to 23,441 outlets during the same period, adding 759 outlets or a 3.35 per cent increase.

Growth is also evident in other minimarket chains, though on a smaller scale. Alfamidi rose from 2,373 to 2,452 outlets, whilst Superindo increased from 248 to 253 outlets.

Conversely, some retail networks experienced outlet reductions. Circle K declined marginally from 500 to 492 outlets. Lawson also contracted from 374 to 355 outlets.

Growth Trends

Over a longer period, changes since 2020 illustrate the aggressive expansion of modern retail networks over the past five years.

Over approximately five years from 2020 to the third quarter of 2025, Alfamart’s outlet count surged from 15,343 to 20,925 outlets. This represents an addition of 5,582 outlets, or approximately 36.38 per cent growth.

During the same period, Indomaret increased from 18,113 to 23,441 outlets, equivalent to an addition of approximately 5,328 outlets or roughly 29.42 per cent growth.

Expansion has also occurred in other formats, though not at the scale of minimarkets. Alfamidi rose from 1,795 outlets in 2020 to 2,452 outlets in the third quarter of 2025. Superindo increased from 182 to 253 outlets.

Meanwhile, Circle K has remained relatively stable but still shows improvement compared to 2020, growing from 373 to 492 outlets in the third quarter of 2025.

Outside this trend, Lawson represents an exception. Although its outlet count is considerably larger than 2020’s mere 68 outlets, the third quarter 2025 position of 355 outlets represents a significant decline from its 2023 peak.

Employment Growth Also Rising

The increase in outlet numbers is also reflected in job absorption at the AMRT group level, which oversees retail networks including Alfamart, Alfamidi, Alfamidi Super, DAN+DAN, and Lawson.

In annual reports, the group’s total workforce is stated to have increased consistently from 126,154 employees in 2020 to 204,835 employees in 2024, including franchise outlet staff.

This represents an addition of 78,681 employees over four years, or approximately 62.37 per cent growth, with 2024 alone adding 9,078 employees compared to 2023, rising from 195,757 to 204,835 employees.

The continued expansion of modern retail outlets through 2025, combined with steadily growing workforce numbers, makes the government’s plan to evaluate new outlet licensing a significant moment, particularly for rural regions.

On one hand, the government wishes to ensure that traditional shops and small businesses maintain competitive opportunity and are not overwhelmed by increasingly proximate minimarkets.

On the other hand, modern retail also serves to provide convenient access to goods whilst absorbing substantial numbers of workers.

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