Retail Leaders Respond to Regional Moratorium on Modern Retail Store Permits
Jakarta — Retail industry leaders have responded to reports of a moratorium on new modern retail store permits being considered by several regional heads, with the chairman of the Indonesian Retailers’ Association (APRINDO), Solihin, affirming the sector’s commitment to comply with local regulations.
Solihin stated that APRINDO will respect any moratorium imposed by regional authorities on opening new modern retail outlets. “If there is a moratorium, we won’t open stores. It’s a regulation, and if a region wants to implement a moratorium, we won’t open new outlets there,” Solihin told CNBC Indonesia on Friday (27 February 2026).
The APRINDO chief has instructed members to open new outlets only in regions where permits can be obtained within existing regulatory frameworks. “I am currently focusing on regions that allow us to open new stores. I have asked all APRINDO members to open new outlets only in areas where permits can be properly processed. We are always entrepreneurs who respect regulations,” he said.
The moratorium reports were initially disclosed by the Ministry of Cooperatives (Menkop) Ferry Juliantono, who confirmed that multiple regional heads plan to implement restrictions on modern retail expansion. “The news about the moratorium comes from regional governments, not from us at the Ministry of Cooperatives. We’ve heard from many regional heads that they will implement a moratorium,” Ferry said during a press conference on Thursday (26 February 2026).
Ferry explained that many regional heads are considering the moratorium due to violations in the issuance of permits for new modern retail outlets. “They see violations against permits, so they are considering implementing a moratorium to limit the issuance of new permits,” he added.
Despite the moratorium initiative, the Ministry of Cooperatives will conduct a review of concerns raised by street vendors and small business operators regarding the impact of Presidential Regulation (Perpres) Number 112 of 2007, which has eased the application process for opening new modern retail outlets, potentially threatening the survival of traditional small shops and micro, small and medium-sized enterprises (MSMEs).
“Regarding input from small vendor entrepreneurs about Perpres Number 112 of 2007, we will review this. We will also discuss this with the Ministry of Trade and relevant parties, as well as with regional governments,” Ferry explained.
The 2007 Presidential Regulation stipulates that modern retail stores must maintain a minimum distance of 500 metres from traditional markets or small shops. Ferry raised concerns about potential violations of this distance requirement: “If modern retail stores are located less than 500 metres away, or even adjacent to traditional markets, what is our position? Should we allow the rules to be violated, or is there some force above the rules? This is where a fair playing field must be created,” he said.