Government to regulate modern retail expansion in villages, prioritise Red and White cooperatives

He said villages should not be dominated by modern convenience stores, as they already have the Red and White Village Cooperatives.

“Ideally, villages should not have Alfamart or Indomaret because we already have cooperatives, so money circulates within the village instead of going to shareholders in Jakarta,” he told ANTARA on Saturday.

He was responding to reports suggesting that the government would stop modern retail expansion following the establishment of the Red and White cooperatives.

“The presence of modern retail needs to be evaluated, including its licensing. I have heard from regional heads that they are considering a moratorium on permits for modern retail outlets such as Indomaret and Alfamart, which must be properly regulated,” he added.

Juliantono affirmed that even without further expansion of modern retail, the government is preparing strategies to strengthen the Red and White cooperatives, which are targeted to grow to tens of thousands of units.

The cooperatives are expected to create job opportunities for millennials and Generation Z, while also serving as marketing platforms for local products and micro, small, and medium enterprises (MSMEs).

He also assured that the Red and White cooperatives will continue collaborating with traditional stalls, including 24-hour resident-run small shops, as well as digital retail platforms.

“As Cooperatives Minister, in carrying out the President’s ideological mandate, I believe the community must become economic actors with cooperatives as their business entity. There will be challenges, but we remain optimistic,” he said.

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Translator: Shofi, Kenzu