Indonesian Retailers to Obey Minimarket Restrictions
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- The Indonesian Retailers Association (Aprindo) will comply with local government regulations on limiting minimarket development.
- Aprindo Chairman Solihin stated that almost 90,000 minimarkets across Indonesia will adhere to rules like those in Central Lombok, which mandate a 1-kilometer distance from traditional markets.
- The retail sector faces challenges from a weakening rupiah, potentially leading to price increases, but businesses are urged to remain optimistic.
The Indonesian Retailers Association (Aprindo) assures full compliance with local government regulations regarding the placement of minimarkets. Chairman Solihin stated that its nearly 90,000 member stores nationwide will adhere to all applicable rules, including those that set minimum distances between minimarkets and traditional markets, such as the 1-kilometer rule in Central Lombok.
I assure you, all Aprindo retailers with almost 90,000 stores in Indonesia will comply with all rules applicable in each region.
Solihin emphasized that this adherence is a commitment to operating modern retail businesses responsibly. Any new local policies will be met with adjustments from retailers. This approach aims to ensure that the growth of modern retail coexists with local policies and the sustainability of traditional markets.
Compliance with regional regulations is a commitment of all Aprindo members in running modern retail businesses.
Aprindo is also open to collaborations, though Solihin noted no official discussions have occurred with Koperasi Desa Merah Putih. The sector, however, is navigating economic headwinds, notably the significant weakening of the rupiah against the US dollar, which is nearing Rp18,000. This currency fluctuation is prompting some suppliers to plan price increases, potentially impacting retail prices.
If there are new policies issued by the local government, business actors will make adjustments according to the provisions in force.
Despite these challenges, Solihin, who is also Corporate Affairs Director at Alfamart, acknowledged that slowing consumer purchasing power is not a new phenomenon. He urged businesses to remain optimistic and resilient. Aprindo hopes for economic stability, including a stronger rupiah, to foster a better business environment.
Certainly, as Aprindo, we will comply with the applicable rules.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.