Said Abdullah Affirms Parliament Never Decided to Close Modern Retail Outlets
The Chair of the Budget Committee of the House of Representatives (DPR RI), Said Abdullah, has affirmed that the institution never took any decision to close modern retail outlets such as Alfamart and Indomaret.
The statement was made following the circulation of public discourse suggesting that the DPR supported the Village Minister’s move to shut down modern retail in order to strengthen village cooperatives.
“We must emphasise that the DPR RI has never taken a decision to close any modern retail business. The DPR carries out its legislative, budgetary, and oversight functions. Matters of business licensing and company operations fall under the authority of the government as the executor of legislation,” Said stated on Monday (23 February).
Said stressed that the authority to revoke business licences or halt company operations lies entirely with the government as the executive branch.
In the context of modern retail, such authority rests with the relevant technical ministries, including the Ministry of Villages, Disadvantaged Regions Development and Transmigration, the Ministry of Cooperatives and SMEs, and the Ministry of Trade.
He explained that the DPR does not possess the technical authority to revoke business licences or close private companies.
The legislator, who also serves as Chair of the Central Board of the PDI Perjuangan party, explained that the circulating discourse emerged within discussions on strengthening the Koperasi Desa Merah Putih (Village Cooperatives) as part of the village economic development strategy. In a number of working meetings and official forums, there were indeed aspirations for village cooperatives to be given greater room to grow amid business competition.
However, Said affirmed that such discourse was not a formal DPR decision but rather part of policy deliberations aimed at strengthening the people’s economy.
Nationally, the government is promoting the strengthening of cooperatives and micro, small, and medium enterprises (MSMEs) as the backbone of the people’s economy. Data from the Ministry of Cooperatives and SMEs shows that the MSME sector contributes more than 60 per cent to the national Gross Domestic Product (GDP) and absorbs approximately 97 per cent of the workforce.
The development of village cooperatives, according to Said, is part of the agenda for economic equity and community-based poverty alleviation. However, strengthening cooperatives must not be interpreted as an effort to eliminate other businesses.
“We are building the village economy collaboratively, not confrontationally. Cooperatives must be strengthened, MSMEs must be encouraged to scale up, but at the same time legal certainty and the investment climate must be maintained. Pancasila Economics teaches balance, not conflict,” he said.
The Chair of the PDI Perjuangan’s East Java Regional Board explained that the DPR consistently carries out its institutional functions constitutionally, namely the formation of legislation, budgeting, and oversight. According to him, the DPR does not have the technical authority to revoke business licences or close private companies.
Said also affirmed that the DPR’s stance has consistently been to promote the harmonisation of policies between the central and regional governments so that village cooperatives can develop in a healthy and sustainable manner without creating legal uncertainty.
“There has never been a DPR policy that is unilateral or beyond constitutional authority. We all have an interest in maintaining national economic stability and public trust,” he concluded.