Minister Maman: Modern Retail, Cooperatives, and Small Shops Must Support Each Other
Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman has affirmed that modern retail chains such as Alfamart and Indomaret, cooperatives, and traditional corner shops (warung kelontong) must support one another in building a healthy business ecosystem, rather than being pitted against each other.
“We must see Alfamart, Indomaret, cooperatives, Madurese warungs, and corner shops as business models that all have a positive impact in driving MSME participation in their respective regions,” Maman told reporters in Jakarta on Thursday.
According to Maman, the government wants all these business actors to strengthen one another, so that the presence of one business model is not perceived as eroding another.
“There should not be a perception that a cooperative will cannibalise Alfamart, or that Alfamart will cannibalise cooperatives or, worse still, MSMEs,” he said.
He noted that many MSME products have already entered the supply chains of modern retailers. Going forward, the government will continue its curation efforts so that more MSME products can be marketed through minimarket networks.
Regarding the issue of a moratorium on modern retail permits, which has been circulating for some time, Maman believes such a policy cannot be applied uniformly across all regions.
In his view, the issuance of permits for establishing modern retail outlets needs to be tailored to the needs and conditions of each locality.
He explained that the authority to grant permits to modern retailers does indeed lie with regional governments, as regional heads better understand local economic conditions and the needs of their communities.
The establishment of self-service shops and modern retail is already governed by Minister of Trade Regulation No. 23 of 2021, as amended by Minister of Trade Regulation No. 18 of 2022 concerning Guidelines for the Development, Structuring, and Supervision of Shopping Centres and Self-Service Shops.
The regulation stipulates that the establishment of shopping centres and self-service shops must refer to the Detailed Spatial Plan (RDTR) set by the regional government.
That provision serves as one of the bases for issuing permits in accordance with the characteristics and needs of each locality.
Maman stressed that the government’s preferred approach rests on the principles of proportionality, fairness, and flexibility according to regional needs, not a comprehensive moratorium on modern retail.
“So perhaps the term is not a moratorium. We see the principle as one of proportionality, fairness, and adjustment to local needs,” he said.