Cooperation Minister Ferry Juliantono to Review Modern Retail Regulations
JAKARTA – The Cooperation Minister Ferry Juliantono will undertake a comprehensive review of Presidential Regulation (Perpres) Number 112 of 2007 and the September 2015 Economic Policy Package.
The review follows submissions from small business operators grouped under the Indonesian Street Vendors Association (APKLI). “Based on feedback from our APKLI colleagues, there is Presidential Regulation 112 and this policy package, which I believe we should review. I will also discuss this with the Ministry of Trade and relevant local government authorities,” Ferry stated during a press conference on Thursday (27 February 2026).
Ferry highlighted one key area of concern: the current minimum distance requirement of 500 metres between modern retailers and traditional markets. According to reports from local authorities, retailers frequently violate this regulation, negatively impacting small warung and traditional market traders.
“On this matter alone, we are calling for verification of compliance with the regulation. If facilities are located less than 500 metres away or even adjacent to traditional markets, what is our position? Should we allow the regulation to be flouted or does some force supersede the regulation? This is where a fair playing field must be created,” he stated.
“This essentially presents a preliminary hypothesis that the presence of modern retailers has a consequential effect on declining revenue or closure of small warung,” Ferry said.
Despite this, he stressed that the government does not reject modern retail establishments, as the sector contributes to employment absorption and improved consumer services. However, regulations must be consistently enforced.
At the same press conference, APKLI General Chairman Ali Mahsun noted that the government issued Presidential Regulation Number 112 in 2007, when the number of warung shops was recorded at 6.1 million units.
“During the implementation of this regulation until 2015, Minister, our warung shops have been eroded by 1 million nationwide,” he said during the press conference at the Cooperation Ministry in Jakarta on Thursday (26 February 2026).
The decline continued after the government released the September 2015 Economic Policy Package, which relaxed modern retail licensing, allowing expansion into all regions, including rural areas.
Since that policy was issued, modern retailers have entered villages and rural areas increasingly. By 2025, approximately 3.9 million warung shops remained.
The data shows a decline of approximately 2.2 million warung shops from 2007 to 2025. The number of officially licensed modern retailers currently reaches approximately 42,000 outlets.
“For this reason, in my capacity as General Chairman today, I am also requesting that the Minister review Presidential Regulation 112 of 2007 and the September 2015 policy package,” he said.