Jakarta. Members of President Prabowo Subianto’s cabinet have voiced differing views over a proposal to limit the expansion of modern retail chains such as Indomaret and Alfamart in rural areas.

Trade Minister Budi Santoso said he would seek clarification from fellow ministers after reports emerged that the government was considering curbs on modern retailers in villages.

The proposal surfaced following Prabowo’s launch of tens of thousands of “Merah Putih” Village Cooperatives, aimed at creating jobs and boosting economic activity across rural areas.

Budi said he plans to meet Village and Disadvantaged Regions Development Minister Yandri Susanto to better understand the scope of the plan.

“I intend to meet the village minister first because I don’t yet know what this proposal actually entails,” Budi told reporters in Jakarta on Tuesday.

He added that any move to regulate retail expansion should be discussed carefully to ensure both the public and business community have a clear understanding and to avoid unnecessary controversy.

Earlier, Yandri told lawmakers that permits for modern retail outlets in rural areas should be scrapped altogether.

“What’s the point of establishing village cooperatives if Alfamart and Indomaret are allowed to run rampant? That’s not fair,” Yandri said, warning that the roughly 20,000 retail outlets nationwide were “heading toward monopoly.”

Over the weekend, Cooperatives Minister Ferry Juliantono also urged authorities to stop issuing new operating permits for modern retailers in villages.

“There should ideally be no Alfamart or Indomaret in villages because village cooperatives already exist. Let the money circulate locally, not flow to retail shareholders in Jakarta,” Ferry said.

However, Ferry struck a softer tone on Tuesday, saying modern retailers could instead collaborate with village cooperatives and small businesses as a constructive solution.

He added that the government would not abruptly halt retail expansion, noting that licensing ultimately depends on regulations set by local governments.

Director General of Domestic Trade Iqbal Shoffan Shofwan said modern retail operations are governed by Law No. 7/2014. While business permits are processed through an integrated online system, final validation still rests with regional administrations.

Iqbal noted that most Indomaret and Alfamart outlets remain concentrated in urban areas, with rural expansion limited due to purchasing power considerations.

“Modern retail networks still mainly operate in cities. When they open a store, they calculate demographics and income levels. That’s why we rarely see chain retailers in villages,” he said.

He stressed that modern retailers and village cooperatives serve different market segments. Cooperatives, he said, are primarily intended to absorb and market local village products.

Iqbal added that modern retail outlets should not automatically be seen as a threat, arguing that partnerships between retailers and cooperatives could strengthen Indonesia’s domestic trade ecosystem.

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