Three Ministers' Views on the Expansion of Indomaret and Alfamart
At least three ministers in the Merah Putih cabinet have highlighted the presence of modern retail networks such as Alfamart and Indomaret and their relationship with the Desa Merah Putih cooperative. They are Minister of Cooperatives Ferry Juliantono, Coordinating Minister for Human Resource Development Muhaimin Iskandar, and Minister of Villages and Transmigration (Mendes PDT) Yandri Susanto.
What are their statements? Here is a summary.
Minister of Cooperatives Ferry Juliantono
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Ferry Juliantono stated that the government does not plan to stop the expansion of Alfamart and Indomaret. According to him, the government will regulate the presence of minimarkets, especially in rural areas.
He also believes that villages should not be dominated by modern retail because they already have Desa/Kelurahan (Kopdes) Merah Putih cooperatives. “Let the money circulate in the village and not go to shareholders in Jakarta,” he said in Jakarta on Saturday, February 21, 2026, as quoted by Antara.
Ferry made this statement in response to reports that the government would halt the expansion of modern retail along with the operation of Desa Merah Putih cooperatives. “I have heard from many regional heads that they will issue a moratorium on regulations regarding the presence of modern retail such as Indomaret and Alfamart and that it must be regulated again.”
Ferry also mentioned that even without modern retail, the government is preparing a strategy to strengthen Desa Merah Putih cooperatives, which are targeted to grow to tens of thousands of units. The presence of these cooperatives is believed to be able to create job opportunities for young millennials and Gen Z, as well as become a platform for marketing local products and MSMEs. Desa Merah Putih cooperatives will also continue to cooperate with traditional shops, including Madura shops and digital retail.
Minister of Villages and Transmigration Yandri Susanto
Yandri once stated that the Desa Merah Putih cooperative is one of the solutions to address the problem of the dominance of modern retail in villages. “Kopdes, a national strategic program, I think is one of the keys to ensuring that economic services are not controlled by a handful of people,” he said in a working meeting with Commission V of the DPR RI at the Parliament Complex, Jakarta, Wednesday, November 12, 2025, as quoted by Antara.
This was conveyed by Yandri in response to a question from Commission V of the DPR RI regarding efforts to overcome the dominance of modern retail, such as Indomaret and Alfamart, which threaten the sustainability of MSMEs owned by villagers. He is also confident that Desa Cooperatives will become a center for the people’s economy that can meet various needs of villagers, from basic necessities, fertilizers, to LPG.
In the future, he said, Desa Merah Putih Cooperatives will also be designed as a joint business system that drives the village economy without eliminating traditional shops. His party continues to coordinate with the Ministry of Cooperatives and SMEs, the Ministry of Finance, and the Ministry of Home Affairs to formulate regulations that protect small businesses so that they can still coexist with Desa Merah Putih Cooperatives.
Yandri also emphasized that the presence of modern retail, especially in villages, does not need to be increased because it has the potential to kill small businesses. Therefore, an alternative economic system is needed that is more supportive of local businesses. “If I personally or it may be my attitude as Minister of Villages, it is enough, there is no need to add more.”
In addition to strengthening Desa Cooperatives, the Ministry of Villages and Transmigration is targeting 20,000 Village-Owned Enterprises (BUMDes) to be involved in the national food supply chain, including in the Free Nutritious Meal program. “Currently, there are about 400 BUMDes that are suppliers of the food program, ranging from rice, eggs, to fish. This is part of the concept of ‘from the village, by the village, and for the village’,” he said.
Coordinating Minister for Human Resource Development Muhaimin Iskandar
Muhaimin Iskandar once highlighted that the massive expansion of modern retail networks such as Indomaret and Alfamart has threatened the sustainability of micro, small, and medium enterprises (MSMEs), especially in rural areas.
“The giant retailers that enter our villages ‘kill’ the people’s economy, including ‘killing’ MSME actors. Frankly, the giant octopus named Indomaret and Alfamart really pose a threat and danger to the growth of our MSMEs,” said Coordinating Minister Muhaimin Iskandar in Jakarta, Tuesday, October 28, 2025, as quoted by Antara.
This happened, according to Muhaimin, because the business chain of the two modern retail networks has formed a closed economic system from producers to distribution, making it difficult for small businesses at the local level to compete fairly. “From upstream to downstream, producers to distribution become one point. So the local government is overwhelmed.”
Muhaimin said that the government itself plans to strengthen the village economy through the formation of Desa Merah Putih Cooperatives, which are expected to accommodate local MSME actors so that they have stronger bargaining power in the face of large retail networks.
This effort is important because the revival of the village economy must start with strengthening the foundation of the community’s business itself. “Desa Merah Putih Cooperatives are here to revive the village economy which is currently sluggish. Village cooperatives bring new hope so that the state and government are present so that the village economy becomes a new economic force,” he said at that time.
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