Jakarta. Villages Minister Yandri Susanto has denied plans to shut down modern minimarkets such as Alfamart and Indomaret in rural areas, clarifying that the government is only considering halting new expansion permits to protect small local businesses.

The clarification came after reports suggested the government intended to close existing outlets operating in villages as part of efforts to strengthen the Red and White Village Cooperatives or locally called Koperasi Desa Merah Putih which the administration views as a key pillar of grassroots economic development.

Yandri stressed that current stores would not be affected, but authorities want to limit further expansion of large retail chains into rural areas.

“It is as if I want to close Indomaret and Alfamart outlets that already exist. No. What we want to stop is new expansion and new permits,” Yandri said in a statement posted on his official Instagram account on Friday.

“We want to honor and strengthen the Red and White Village Cooperatives from the people, by the people, and for the people. At least 20% of cooperative profits will return as village original income,” he added.

Yandri said the proposal emerged from complaints by village shop owners who struggle to compete with the rapid expansion of modern retail chains into rural communities.

“I told the House of Representatives that minimarkets like Indomaret and Alfamart may continue operating. I never proposed closing them. What should be stopped is new permits so these minimarkets do not enter villages and kill people’s small businesses,” he said at a government event in Serang, Banten.

Meanwhile, Indonesian Retailers Association (Aprindo) chairman Solihin said retail operators always comply with local regulations before opening new outlets.

“I ensure our members follow all rules when opening stores in areas considered to have potential. Every region has regulations, and we comply with them,” Solihin said.

He added that expansion is carried out through consultation with local residents and proper licensing procedures at the village and district levels. Aprindo members currently operate around 90,000 outlets nationwide.

Trade Minister Budi Santoso also stressed that the Koperasi Desa Merah Putih program is designed to strengthen distribution networks rather than compete directly with existing businesses.

“This is a moment for collaboration. Distributors can channel products directly to village cooperatives so distribution becomes more efficient and prices remain controlled,” Budi said on Thursday.

He said the cooperatives are intended to function not only as village shops but also as local economic hubs capable of distributing goods, aggregating village products and even supporting exports.

Cooperatives Minister Ferry Juliantono added that restrictions on modern retail expansion depend largely on regional regulations, emphasizing that collaboration between modern retailers, cooperatives and micro, small and medium enterprises (MSMEs) remains the government’s preferred approach.

The government believes such a collaborative model can strengthen village economies while maintaining a fair and stable business climate for the retail sector.

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