Minister Maman: Modern Retail, Cooperatives, and Small Shops Must Support Each Other

Jakarta (ANTARA) - Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman has stressed that modern retailers such as Alfamart and Indomaret, cooperatives, and traditional kiosks must support each other in building a healthy business ecosystem and should not be pitted against one another. “We must view Alfamart, Indomaret, cooperatives, Madurese kiosks, and other small shops as business models that all have a positive impact in encouraging MSME involvement in their respective regions,” Maman told journalists in Jakarta on Thursday. According to Maman, the government wants all these business actors to strengthen one another, eliminating the perception that the presence of one business model will erode another. “We must not let it seem as though cooperatives will cannibalise Alfamart, or that Alfamart will cannibalise cooperatives or even MSMEs,” he said. He noted that many MSME products have already entered the supply chains of modern retailers. Going forward, the government will continue to conduct curation so that more MSME products can be marketed through minimarket networks. Regarding the ongoing issue of a moratorium on modern retail permits, Maman assessed that such a policy cannot be applied uniformly across all regions. He stated that the issuance of permits for modern retail establishments must be tailored to the needs and conditions of each area. The authority to issue permits lies with regional governments, as local leaders have a better understanding of the local economy and the needs of their communities. The establishment of supermarkets and modern retail outlets is regulated under Trade Minister Regulation Number 23 of 2021, as amended by Trade Minister Regulation Number 18 of 2022, concerning Guidelines for the Development, Arrangement, and Supervision of Shopping Centres and Supermarkets. The regulation stipulates that the establishment of shopping centres and supermarkets must refer to the Detailed Spatial Plan (RDTR) set by the regional government. This provision serves as one of the bases for granting permits according to the characteristics and needs of each region. Maman emphasised that the government’s approach prioritises the principles of proportionality, fairness, and flexibility according to regional needs, rather than a comprehensive moratorium on modern retail. “So perhaps the term is not a moratorium. We see the principle as one of proportionality, fairness, and adaptation to the needs of the region,” he said.