Minister for Cooperatives Ferry: Regional Heads Seeking Moratorium on Modern Retail

JAKARTA — Indonesia’s Minister for Cooperatives Ferry Juliantono has revealed that several regional heads intend to impose a moratorium on permits for opening modern retail outlets such as Indomaret and Alfamart.

This stems from alleged violations of minimum distance requirements between modern retail outlets and traditional markets as prescribed in Presidential Regulation (Perpres) No. 112 of 2007.

“We hear from many regional heads that they plan to impose a moratorium,” he stated during a press conference at his office in Jakarta on Thursday, 26 February 2026.

He further explained that the alleged violations in the field involve the minimum 500-metre distance requirement between modern retail development and traditional markets and modern shops.

Ferry urged that such policies be implemented judiciously without causing disruption, noting that modern retail has nonetheless provided benefits in the form of job creation and shopping convenience for consumers.

“However, we must also ensure that violations of established regulations do not occur. We have received reports of numerous such violations,” he added.

This includes imposing sanctions on modern retail outlets found to be in violation of the Presidential Regulation.

The Ministry for Cooperatives has received various inputs from regional heads regarding the evaluation of modern retail permits in order to create healthy business competition whilst protecting small business operators and traditional markets.

“This must also be evaluated by the more competent authorities in city and district government regulations,” Ferry said.