Indonesian Political, Business & Finance News

Minister of Cooperatives Reveals Many Regional Authorities Plan Moratorium on Alfamart-Indomaret and Others

| Source: CNBC Translated from Indonesian | Regulation
Minister of Cooperatives Reveals Many Regional Authorities Plan Moratorium on Alfamart-Indomaret and Others
Image: CNBC

Jakarta – The Minister of Cooperatives (Menkop) Ferry Juliantono has revealed that several regional heads plan to impose a moratorium on modern retail store licences.

“News about the modern retail moratorium comes from local governments, not from us at the Ministry of Cooperatives. We’ve heard from many regional heads I’ve met – they will be implementing a moratorium,” Ferry said during a press conference on Thursday, 26 February 2026.

Ferry added that many regional authorities plan the moratorium because of potential licensing violations for modern retail establishments.

“They see there have been violations of permits, so they are considering implementing a moratorium to restrict the issuance of new licences,” he continued.

Nevertheless, the ministry will conduct a study regarding complaints from small warung operators about the impact of Presidential Regulation (Perpres) No. 112 of 2007. This policy has loosened the application process for new modern retail openings, potentially threatening the existence of traditional warung and SMEs.

“From input we’ve received from warung operators, regarding Perpres No. 112 of 2007, we will study this. We will also discuss with the Ministry of Trade and other relevant parties, as well as with local governments,” Ferry explained.

Under this regulation, modern retail stores must be located at least 500 metres away from traditional markets or warung.

“If it turns out that some stores are less than 500 metres away, or even adjacent to traditional markets, what is our stance? Should we allow the regulations to be violated, or is there some force above the regulations? This is where things should be made fair,” he said.

Ferry added that the central government will conduct a joint review with regency and city governments and regional heads to find solutions to the problem.

“Regarding Perpres 112 of 2007 and the policy package presented in September 2015, we will submit this for review. We will discuss with friends from the Association of Indonesian Regents (APKASI) and regional heads to address this issue as wisely as possible,” he concluded.

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