Padang. Authorities in West Sumatra province have introduced measures to limit the expansion of national retail chains such as Alfamart and Indomaret, in a bid to protect local micro, small, and medium enterprises (SMEs).

Endrizal, head of the provincial Cooperatives and Small and Medium Enterprises Department, said on Friday that the policy is not codified in formal regulation but instead reflects a collective agreement aimed at sustaining local businesses.

“There is no formal rule, but rather a mutual understanding to protect local SMEs so they can survive and support economic activity at the community level,” Endrizal said.

He added that the approach is intended to ensure that local enterprises continue to grow and contribute to the regional economy.

Padang City Secretary Raju Minropa said local authorities are not issuing permits for external retail operators to establish outlets in the provincial capital.

According to Raju, the policy forms part of a broader strategy to help SMEs scale up and improve their competitiveness.

As part of the initiative, local retail stores in Padang will be required to allocate dedicated space — referred to as “SME corners” — to market locally produced goods.

At the same time, SME operators are being encouraged to improve product quality, including packaging standards, to better appeal to consumers.

“Retailers require SME products to have halal certification and approval from the Food and Drug Supervisory Agency, as they follow standards to ensure products are safe and marketable,” Raju said.