Retail Leaders Respond to Call for Alfamart and Indomaret Expansion Freeze in Villages
Jakarta — Retail sector leaders have openly addressed the issue of halting new modern retail outlet openings once the Red and White Village Cooperative (KDMP) becomes fully operational.
Solihin, Chairman of the Indonesian Retail Entrepreneurs Association (APRINDO), did not directly comment on the matter but confirmed the association will comply with all applicable regulations. Should any members violate such rules, new outlets cannot be opened.
“Our members respect the regulations, so if there is a rule about a moratorium or prohibition on opening new outlets, then we simply won’t open them. As business owners, we must obey the regulations that apply in each region,” Solihin told CNBC Indonesia on Friday (27 February 2026).
Solihin declined to elaborate further, stating the association focuses solely on developing modern retail business for its members. He stressed that APRINDO members must always adhere to regional regulations where modern retail outlets operate.
“I always remind our members to follow the regulations that apply in their respective regions,” he said.
Previously, Rural and Disadvantaged Areas Development Minister Yandri Susanto denied claims that he intended to close existing modern retail outlets in villages. He clarified that only new expansion permits for modern retailers should be stopped.
“Existing minimarkets, Indomaret, Alfamart — let them continue operating. I have never proposed closing them. What we are stopping is new licensing. We cannot allow these minimarkets to expand into villages and destroy the livelihoods of rural people,” Yandri stated on his official Instagram @yandri_susanto on Friday (27 February 2026).
Yandri emphasised that existing modern retail outlets should remain operational but stressed the need to honour the Red and White Village Cooperative, noting that 20% of profits will return as village original revenue.
“I am not trying to shut down Indomaret and Alfamart that already exist. What we are stopping, using the term ‘stop,’ is new expansion and new licensing. We must honour and support the Red and White Village Cooperative — from the people, by the people, and for the people. At least 20% of cooperative profits will return as village original revenue,” Yandri explained.
Meanwhile, the Minister of Cooperatives also noted that modern retail in villages limits money circulation benefiting the local community, making evaluation of new outlet expansions necessary. With village cooperatives in place, money will circulate within the village itself rather than flowing to Jakarta.
“Why village cooperatives? Because they are owned by villagers themselves. When a village cooperative engaged in retail makes profits, the money circulates within the village among rural people, not to Jakarta,” said Ferry during a press conference on Thursday (26 February 2026).
Despite this, existing modern retail presence in villages should be respected given its role in providing employment. However, regarding new expansion permits, the minister urged consideration of local conditions, particularly in rural areas.
“If modern retail has already been established, then it’s fine — we still respect it. But regarding expansion ambitions, especially into villages, consider others. This is an area that is also the right of rural people,” he said.