Cooperative Minister Asks Indomaret and Alfamart to Restrain Expansion into Rural Areas

JAKARTA, KOMPAS.com - The Minister of Cooperatives, Ferry Juliantono, has asked modern retailers such as Indomaret and Alfamart not to expand into rural areas, following the establishment of Village/Sub-district Red and White Cooperatives (KDMP) in villages.

However, the government does not object to the presence of modern retailers that are currently operating. The Minister has only requested that expansion be more controlled.

“We respect the modern retailers that already exist; that’s fine. But regarding the desire to expand, especially into villages, they should consider others. This is also an area that belongs to the people,” he said during a press conference at his office in Jakarta, Thursday (February 26, 2026).

He explained that this is to create a fair business competition between modern retailers and small businesses, especially small shops and traditional market traders.

According to data from the Indonesian Street Vendors Association (APKLI), the number of small shops has decreased by 2.2 million units between 2007 and 2025, and 3,500 traditional market traders have decreased between 2007 and 2015.

“We also want to compete, to have healthy competition, as long as the playing field is also healthy and fair. If it’s not fair and healthy, then we ask our friends from the street vendors association to compete with modern retailers; they will never win,” he said.

Ferry revealed that the Village/Sub-district Red and White Cooperatives are owned by the village community, so the profits from the business will circulate in the local area.

“The Village/Sub-district Red and White Cooperatives will become a hub to sell goods to small shops and members of the Indonesian Street Vendors Association at relatively cheaper and more affordable prices,” he said.