Traders complain about modern retail expansion, but Trade Minister says there’s no problem

JAKARTA, KOMPAS.com - Trade Minister Budi Santoso regards the expansion of modern retail stores or minimarkets as not a problem. He said this while responding to complaints from the Indonesian Street Vendors Association about many warung kelontong closing due to retail expansion.

‘Because this actually has not been a problem; it has been running well. The partnership scheme,’ Budi said at the Ministry of Trade offices, Jakarta, Thursday (5/5/2026).

The provision is set out in Minister of Trade Regulation Number 70/M-DAG/PER/12/2013 on Guidelines for the Organisation and Guidance of People’s Markets, Shopping Centres, and Supermarkets.

‘The partnership scheme involves collaborations between distributors like Alfamart and Indomaret supplying to small grocers. It has been operating since 2015. And guidance is continuously carried out,’ Budi said.

He noted that the collaboration not only opens supply access for warung. Retail companies also assist in marketing products of Micro, Small and Medium Enterprises (UMKM).

‘So in effect the cooperation pattern with MSMEs has continued to operate,’ he said.

Ali Mahsun, Secretary-General of the Indonesian Association of Street Vendors, said around 2 million warung had closed since the government’s Paket Kebijakan Ekonomi 2015 was implemented.

‘We are not at odds with modern retail, but we want the people’s economy to circulate, the people’s economic sovereignty to be reclaimed. The village economy should circulate for villages, the sub-district economy for sub-districts,’ Ali said.