Cooperative Minister: Presidential Regulation No. 112/2007 and 2015 Economic Policy Package to be Re-evaluated
The Minister of Cooperatives, Ferry Juliantono, has stated that the implementation of Presidential Regulation No. 112 of 2007 and the 2015 Economic Policy Package needs to be re-evaluated, involving associations and local governments throughout Indonesia.
This assessment follows input from the Indonesian Association of Street Vendors (APKLI) regarding the impact of modern retail expansion on street vendors and micro-enterprises.
“The APKLI’s proposal will be submitted for review with colleagues from the association, local governments throughout Indonesia, and regional heads, so that this issue can be addressed as wisely as possible,” said Minister Ferry at the Ministry of Cooperatives, Jakarta, Thursday.
Several issues need to be assessed, including the definition and classification of modern stores based on floor area, as well as the implementation of zoning that considers the socio-economic impact on small traders.
According to Ferry, although modern retail has a positive contribution in absorbing employment, there needs to be an evaluation of the violations that occur, especially regarding the distance between traditional markets and modern retail, which should not be less than 500 meters.
The Ministry of Cooperatives will coordinate with relevant parties, such as the Ministry of Trade and local governments, to discuss further regarding the supervision and enforcement of these rules.
“In Presidential Regulation No. 112 of 2007, the most important thing is that the distance between modern retail and traditional markets should not be less than 500 meters. We urge that this be checked to see if it is being followed,” said the Minister.
“If it turns out that there are outlets that are less than 500 meters apart or even adjacent to traditional markets, what will our response be? This is where a fair playing field must be created,” he added.
The Minister, together with APKLI, also encourages the strengthening of cooperatives through the 83,000 Desa/Kelurahan (Kopdes) Merah Putih program.
The Ministry of Cooperatives is committed to working with APKLI in an effort to strengthen the local economy by integrating street vendors into the Kopdes Merah Putih ecosystem.
With the presence of Kopdes Merah Putih, it is hoped that it can provide goods at more affordable prices for street vendors and micro, small, and medium enterprises (MSMEs).
“Village Cooperatives are a solution that can restore economic activity in villages, so that the benefits of economic activity are still felt by the villagers themselves,” said Ferry.