Retail Chief Responds to Government Call to Halt Village Expansion
Jakarta – Plans for a moratorium on modern retail licensing in several regions have drawn a response from the Indonesian Retail Entrepreneurs Association (Aprindo). Business leaders emphasised they will follow local government decisions and will not violate regulations if expansion permits are restricted.
Aprindo’s General Chair Solihin stated that association members have always adhered to regulations applicable in each of their operational regions since the organisation’s inception.
“Aprindo members have always been obedient to the rules that apply in the area where we open outlets. That is our principle,” Solihin told CNBC Indonesia on Saturday, 28 February 2026.
He also dismissed claims that modern retailers frequently violate minimum distance regulations with traditional markets or small shops. According to him, every outlet opening undergoes formal licensing processes.
“As I said from the beginning, Aprindo members comply with regulations. And whenever we open an outlet, we always handle licensing properly,” he stressed.
Regarding calls from the Ministry of Cooperatives (Kemenkop) and Ministry of Villages (Kemendes) for modern retailers to slow expansion into villages following the emergence of Red and White Village Cooperatives (Kopdes), Solihin said his organisation remains focused on business development in line with regulations.
“We focus on business development. If asked, the answer I provided at the beginning applies: in conducting development or expansion, Aprindo members obey the rules that apply in that region,” he said.
He emphasised that if local regulations do not permit expansion, Aprindo members will not force their way in.
“If there are rules, we cannot violate them. Rules must be obeyed, that’s how it works,” he stated.
Regarding the number of modern retail outlets, Solihin said Aprindo members currently operate approximately 90,000 outlets throughout Indonesia.
“We don’t have exact data elsewhere, but the figure is around 90,000 across all regions of Indonesia for Aprindo members. If we include non-member retailers, there would certainly be more,” he explained.
Regarding future expansion plans, he said this depends entirely on local government policy. “As long as the rules permit, our members will certainly expand, as long as the region still permits it and we follow the rules,” he said.
Solihin again emphasised that authority to issue permits for modern retail outlets lies with regional governments.
“We comply with Regional Government regulations, once again. Because licensing comes from the region, so we always obey regulations in that area,” Solihin said.
Previously, the Minister of Villages and Disadvantaged Regional Development (Mendes PDTT), Yandri Susanto, denied claims that he wanted to close modern retail outlets operating in villages. He stressed that only the granting of expansion licenses in villages should be halted for modern retailers.
“Minimarkets that already exist, go ahead. Indomaret, Alfamart that already exist, go ahead, I never proposed closing them. What should be halted is new licensing, so that these minimarkets do not reach villages and destroy rural livelihoods,” Yandri said, quoted from his official Instagram @yandri_susanto, Friday, 27 February 2026.
Yandri added that modern retail outlets already operating in villages should continue operations. However, he stressed that Kopdes Merah Putih must be honoured, given that 20 per cent of profits will be returned as village original revenue.
“It seems I want to close existing Indomaret and Alfamart outlets – no. What we are halting is new expansion, new licensing. We must honour and ensure success of the Red and White Village Cooperative, which belongs to the people, by the people, and for the people. Its profits, especially for villages, at least 20 per cent of cooperative profits return as village original revenue,” Yandri explained.
Meanwhile, Cooperatives Minister Ferry Juliantono also explained that modern retail in villages means money circulation cannot be effectively utilised by rural communities, so expansion of new outlets requires evaluation. With Village Cooperatives in place, money circulation will be used by the village community itself.
“Why must it be village cooperatives? Because village cooperatives belong to the village community, so if there are profits from village cooperatives conducting retail activities, the money will circulate within the village among villagers, not go to Jakarta,” Ferry said at a press conference, Thursday, 26 February 2026.
Nevertheless, the presence of modern retailers in villages must still be respected, as they have provided considerable employment. However, regarding issuing new permits, he said consideration should be given to existing conditions, particularly in villages.
“If modern retail has already been established, that’s fine, we still respect it, but regarding expansion desires, especially to villages, remember the others – this is also a right of village communities,” he said.