Indonesia’s Minister of Cooperatives, Ferry Juliantono, is urging a slowdown in the expansion of modern retail chains like Alfamart and Indomaret into rural areas, a move intended to protect locally-owned village cooperatives. The decision comes as the government seeks to bolster economic opportunities within villages and prevent financial resources from flowing to major cities.
“What we really wanted to do was clarify the issue,” Juliantono said Thursday during a press conference in Jakarta Pusat. “We respect the modern retailers that already exist, that’s fine, but regarding the desire to expand, especially into villages… they should remember others. This is an area that is also the right of the people.”
Juliantono argued that villages should serve as economic hubs for local residents through the Red and White Village Cooperatives (Kopdeskel). He expressed concern that the dominance of modern retail in rural areas would simply redirect money away from local communities, hindering their economic development.
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The Minister also highlighted the uneven playing field between small, independent vendors and large retail networks, suggesting that without government support through village cooperatives, smaller businesses would likely fail.
“Now we want the people to be able to create modern retail as well. Is it impossible for the people to create modern retail? Because the people also have the right to create modern retail. And we also want to compete, to compete fairly, as long as the arena is also healthy and fair,” Juliantono added.
He explained that the core principle behind strengthening cooperatives as retail operators is equitable distribution. Juliantono emphasized that cooperatives are owned by the villagers, not by the government, and that profits from retail businesses would be returned to the community members themselves.
“The Village (Kelurahan Merah Putih) Cooperative belongs to the village community, whose members are the villagers… So if the Village (Kelurahan Merah Putih) Cooperative is involved in modern retail, then the profits will return to the village community,” he said.
See also Video: Cak Imin Highlights Threat of Modern Retail to MSMEs
(rea/ara)
