Millions of Traditional Shops and Thousands of Traditional Markets Have Closed Since 2007, Association Reveals the Reason

JAKARTA, KOMPAS.com – The Indonesian Association of Street Vendors (APKLI) has recorded that millions of traditional shops and thousands of traditional markets have closed following the expansion of modern retail into villages.

APKLI Chairman Ali Mahsun said that the government issued Presidential Regulation No. 112 of 2007 in 2007. At that time, the number of traditional shops was recorded at 6.1 million units.

Eight years after the regulation was implemented, the number of shops decreased. In 2015, the number fell to 5.1 million units. As many as 3,500 traditional markets also closed during the same period.

“During the implementation of this presidential regulation until 2015, the number of traditional shops in the country has decreased by 1 million,” he said during a press conference at the Ministry of Cooperatives, Jakarta, Thursday (February 26, 2026).

Since the policy was issued, modern retail has increasingly expanded into villages and rural areas. In 2025, the number of traditional shops remaining was around 3.9 million units.

The data shows a decrease of around 2.2 million traditional shops from 2007 to 2025. The number of officially licensed modern retail outlets currently reaches around 42,000 stores.

“Therefore, on this occasion, as Chairman, I would also like to ask the Minister to review Presidential Regulation No. 112 of 2007 and the policy package of September 2015,” he said.

“We are not hostile to modern retail, but we want the people’s economy to thrive, we want to regain economic sovereignty, and we want the village economy to thrive for the village,” he added.

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