Minister for Village Development and Ministry of Cooperatives Call for Alfamart and Indomaret to Halt Village Expansion
Jakarta – The government will evaluate the process for issuing licences for new modern retail outlets to allow small traders operating warung kelontong and SMEs greater freedom to conduct business. The evaluation will also ensure that the Merah Putih Village Cooperative (KDMP) can operate in accordance with its objectives of promoting rural economic prosperity.
The Minister for Village Development and Disadvantaged Regions (Mendes PDTT), Yandri Susanto, denied suggestions that modern retail outlets operating in villages should be closed. He clarified that only new expansion licences for modern retail in villages should be halted.
“Minimarkets that already exist, please continue operating. Indomaret and Alfamart that are already there, please continue. I have never proposed closing them. What should be halted is new licences – we must not allow these minimarkets to expand into villages and kill the businesses of rural people,” Yandri stated.
Yandri added that existing modern retail outlets in villages may continue operating. However, he stressed that the Merah Putih Village Cooperative must be honoured, given that 20 per cent of profits will be returned as village revenue.
“It seems as though I want to close existing Indomaret and Alfamart outlets – I do not. What we are halting is new expansion, new licences. We must honour and succeed with the village cooperative of the people, by the people and for the people. At least 20 per cent of cooperative profits will return as village revenue,” Yandri explained.
Meanwhile, the Minister of Cooperatives (Menkop) also explained that modern retail in villages limits the money circulation that can be utilised by village communities, making it necessary to evaluate new outlet expansion. With village cooperatives in place, money circulation will benefit the villagers themselves, enabling village economies to grow rapidly.
“Why village cooperatives? Because village cooperatives belong to village communities. When profits come from a village cooperative conducting retail activities, the money circulates within the village and stays with villagers, rather than going to Jakarta,” said Ferry at a press conference.
Despite this, the presence of modern retail in villages must still be respected for providing considerable employment and absorbing labour. However, for issuing new licences, consideration should be given to existing conditions, particularly in villages.
“If modern retail has already been built, that is fine – we respect it. But for expansion ambitions, especially into villages, remember others – there are also rights that belong to rural people,” he added.