Said Abdullah Stresses Parliament Has No Authority to Shut Down Modern Retail Businesses
The Chairman of the House of Representatives’ (DPR) Budget Committee, MH Said Abdullah, has spoken out regarding public discourse suggesting that parliament supports the Village Minister in closing modern retail outlets. He firmly stated that such reports are inaccurate.
MH Said Abdullah emphasised that the DPR does not possess the authority to close or revoke the business permits of modern retail operations. Such authority lies entirely within the executive domain, including the Ministry of Villages, Disadvantaged Regions Development and Transmigration, as well as relevant technical ministries such as the Ministry of Cooperatives and SMEs and the Ministry of Trade.
“We must make clear that the DPR has never taken a decision to close any modern retail business. The DPR carries out legislative, budgetary, and oversight functions. Matters concerning business permits and company operations fall under the authority of the government as the executor of legislation,” said Said Abdullah on Monday (23/02/2026).
The legislator, who also serves as Chairman of the PDI Perjuangan central executive board, explained that the discourse arose from discussions on strengthening the Merah Putih Village Cooperatives (Kopdes) as part of the rural economic development strategy. During several working meetings and official forums, aspirations emerged for village cooperatives to be given greater room to grow amid business competition.
However, he noted that this discourse does not constitute a formal DPR decision, but rather forms part of policy discussions aimed at strengthening the people’s economy.
Nationally, the government continues to promote the strengthening of cooperatives and MSMEs as the backbone of the people’s economy. According to data from the Ministry of Cooperatives and SMEs, MSMEs contribute more than 60 per cent to the national Gross Domestic Product (GDP) and absorb approximately 97 per cent of the workforce. Meanwhile, the development of village cooperatives forms part of the agenda for economic equalisation and community-based poverty alleviation.
It is within this context that the idea emerged for the business ecosystem in villages to be more favourable to local business operators. However, Said Abdullah stressed that strengthening cooperatives must not be interpreted as an effort to destroy other businesses.
“We are building the village economy collaboratively, not confrontationally. Cooperatives must be strengthened, MSMEs must be encouraged to move up, but at the same time legal certainty and the investment climate must be maintained. Pancasila economics teaches balance, not conflict,” he asserted.
Furthermore, the Chairman of the PDI Perjuangan East Java regional executive board explained that the House of Representatives holds the functions of legislation, budgeting, and oversight. The DPR does not possess the technical authority to revoke business permits or shut down private companies.
Said Abdullah also affirmed that parliament’s stance has consistently been to promote policy harmonisation between central and regional governments so that village cooperatives can develop in a healthy and sustainable manner without creating legal uncertainty.
“The Speaker of the DPR consistently carries out institutional functions in accordance with the constitution. 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.