Indonesia's MSME Minister urges modern retail, small stores to coexist

Jakarta (ANTARA) - Micro, Small, and Medium Enterprises (MSMEs) Minister Maman Abdurrahman emphasized that modern retail chains, cooperatives, and small grocery stores should complement one another in fostering a healthy business ecosystem rather than being viewed as competitors.

"The government wants all business players to strengthen one another so that no perception arises that the presence of one business model undermines another," he said here on Thursday.

He explained that many MSME products have already entered the supply chains of modern retail businesses. Going forward, the government will continue to curate MSME products to enable more of them to be marketed through minimarket networks.

Regarding the long-standing issue of a moratorium on permits for modern retail outlets, Abdurrahman said such a policy cannot be applied uniformly across all regions. According to him, permits for the establishment of modern retail outlets should be tailored to the needs and conditions of each region.

He noted that the authority to issue permits for modern retail outlets lies with regional governments, as regional leaders have a better understanding of local economic conditions and community needs.

The establishment of supermarkets and modern retail outlets is regulated under Trade Minister Regulation No. 18 of 2022 on Guidelines for the Development, Arrangement, and Supervision of Shopping Centers and Supermarkets.

The regulation stipulates that the establishment of shopping centers and supermarkets must comply with the Detailed Spatial Plan (RDTR) determined by regional governments.

Abdurrahman stressed that the government's approach is based on the principles of proportionality, fairness, and flexibility in line with regional needs, rather than imposing a blanket moratorium.

"So, perhaps the appropriate term is not a moratorium. We adhere to the principles of proportionality, fairness, and alignment with the needs of each region," he said.

Related news: Indonesia pushes village cooperatives to expand MSME markets

Translator: Shofi, Kenzu

Editor: M Razi Rahman

Copyright © ANTARA 2026