Indonesia’s Villages Minister Yandri Susanto highlighted recently that the government is considering plan to halt new expansion permits for minimarkets in the rural areas to protect small local businesses.
This statement comes after earlier rumours that the government is planning to close existing minimarkets operating in villages as part of efforts to strengthen the Red and White Village Cooperatives or locally called Koperasi Desa Merah Putih.
There is no plan to close existing minimarkets but the authorities will limit new openings. Yandri said, “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.”
The plan comes after widespread complaints by village shop owners who struggle to compete with the rapid expansion of modern retail chains into rural communities.
