The policy of "turning off" modern retail that has occurred recently, according to the Chairman of the Global Retail Association (AGRA) Affiliate Roy Nicholas Mandey, actually does not need to be done. This is because traditional markets, stalls, Red and White Village Cooperatives (KDMP), and modern retail have their own roles. The government should synergize everything in one slick orchestration.
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Therefore, what happened in West Nusa Tenggara (NTB) - when local authorities closed a modern retail that had been standing for a long time - in his view was a setback. "If you say it still lacks permission, ask them to complete it. It is not an excuse to close," he said.
The presence of the KDMP is considered to be the cause of everything. The government seems to want to be seen as a helper to cooperatives that are considered more pro-people.
However, according to Roy, in the current era all existing elements can be synergized by the government so that they become one unit in an economic system that complements each other. "What must be done according to me is synergy and collaboration. It is not the time to stand alone. If you stand alone you are not strong. It's time for us to be a nation, a land of mutual embrace. This is what is in line with Pancasila," said Roy Nicholas Mandey, who is also Chairman of the Board of Trustees of the Indonesian Retail Entrepreneurs Association (Aprindo).
In this case, he continued, the government must act like a conductor. The government is the one who can regulate and direct each of them - traditional markets, stalls, KDMP, and modern retail - to play their respective roles. Not one of them turns off the other.
If this can be orchestrated by the government, it will be a powerful force. The result, everyone will benefit and the community will be facilitated. "Everything; KDMP, stalls, traditional markets, modern retail, and others can be coordinated into one in an ecosystem," he told Edy Suherli, Bambang Eros, and Irfan Meidianto when visiting the VOI office, Tanah Abang, Central Jakarta, June 3, 2026.
Recently, the public has been widely highlighting the controversy in Central Lombok, NTB. The authorities asked a number of modern retailers to be closed for reasons of incomplete permits. From your observations, what is really going on behind the scenes?
"This is a setback in making decisions and policies. Ideally, the central and regional governments should be present for their people. They must always defend the people. We business actors are people too, in addition to the community or consumers we serve.
This means that before a decision is made, wisdom, openness, and transparency precede the decision or prohibition. This is what I call a setback.
Why is that? Because in one condition, what do you want to prioritize now? The community in meeting its needs, or making it more difficult for the community to get its needs? That's the first.
Then the second, must be remembered that the permit was born from the local government or the central government. Why is it open? It means it must be questioned.
Then the others, we are also bringing opportunities for local workers. All retail business actors when opening a branch in an area will use the manpower from that area, because it reduces costs rather than having to take from outside workers. Banning us means shutting down jobs.
Then, it also reduces the potential tax revenue. We have a tax ratio even though it hasn't reached 12%, which is expected to be achieved this year. Then for VAT and local taxes will also be lost. Then, the value of investments that have entered the region will also be lost, where the investment factor is also very necessary.
What else is the role of modern retail important?
"People can shop easily, quickly, and at a more stable price, because we are always the first to keep inflation under control. When prices are chaotic, we are the most stable. The reason is, we have stock and availability of goods that are qualified and regulated by a neat inventory management. So the price is definitely more stable than those who have less stock.
"Our brothers who are in the warung or in the traditional market are very limited because of their individual business. If we are a corporation, we will arrange the availability and stability of prices.
What do you think is the solution to the controversy over the closure of modern retail in NTB?
If you say that there is still a lack of permits, ask them to complete it. It is not an excuse to close. Okay, for example, in the list of permits, it is expected that PTSP (Integrated Service One Door). But we know, even though it is called one door, there are many windows. This is a fact and input for the government.
Then when there is investment that has entered, there is labor absorption, there is tax that we deposit, and move the economic sector, this must be appreciated. Purchasing Managers' Index (PMI) we always take care of as part so that there is no layoffs in manufacturers, so that the business is maintained, and so on. So, the multiplier effect is very dominant when it is prohibited or restricted.
One of the suspected causes of the closure was the presence of a red and white cooperative. How do you track?
Again, I say, the state must be present for its people. Consumers, society, academics, and the media are also people. In making decisions, they must be fair. It does not mean that the many must be reduced and the few added, that is not academic, not substantive.
"Now the times are advanced, everything is digital. What must be done according to me is synergy and collaboration. It is not the time to stand alone. If you stand alone you are not strong. It's time for us to be a nation, a land of mutual embrace. This is what is in line with Pancasila.
"I see there is a difference in interpretation of the presence of the Red and White Village Cooperative (KDMP) and modern retail. Because of course we already know the news, that the presence of KDMP must be superior to modern retail. According to us business actors, this is not detailed. And we were never invited to talk about this.
In the polemics over the closure of modern retail in NTB, according to AGRA Chairman Roy Nicholas Mandey, the government must be present to be able to protect all parties. (Photo: Bambang Eros VOI, DI: Raga Granada VOI)
So KDMP can partner with modern retail?
Yes, products from farmers and fishermen can enter modern retail through existing networks. Cooperatives cannot do that because their reach is only in their area. If this synergy occurs, it will be more powerful.
Modern retail has a network to manufacturers because of its large-scale purchases. This can be used for supply chain or distribution channels to supply goods in KDMP. If they buy it themselves, the price will definitely be more expensive. So, modern retail can be a "parent" for a newly born KDMP. The fact that we see in some areas, the KDMP building is already built but still closed because the goods are not there yet. So, the readiness is not there.
So once again, not banning or blocking, but how to orchestrate everything so that a good and good concert takes place. Well, who is the orchestrator? Yes, the government.
A number of modern retail employees have protested. What is the association doing to help them?
The association is facilitating coordination with the government. But, the decision is still in each corporation. When there is a demonstration, this is the aspiration from them. Yes, it should be heard by the government. There must be a way out of the government.
"So far, the narrative that has developed says that modern retail is eroding grocery stores, what is your response?"
That's not a general condition. The reason is, there are several areas that have managed to condition the relationship between stalls, people's markets, and modern retail. However, there are also areas that do not have a concept, so - yes, sorry - they eventually create a distance between modern retail and people's markets, traditional markets, or stalls.
Now the fact is, can we fight online shopping (online) or e-commerce? Both owned by the nation's children and investors from outside who make Indonesia their market (market). Does it not erode the stall? The number is very significant.
We also feel the impact because we are based on physical stores. That is, we also continue to improve by providing applications, that is the way out. Now what about stalls and markets? This must be helped by the government and local governments through the trade service. For example, by forming a joint application.
"In Jabodetabek there is a phenomenon of Warung Madura which has massive and large growth, how do you see this?
We respect their existence. They have their own market, so we don't feel outdone. Usually they are on the side of the main road and open 24 hours. We are just opening ourselves up to be orchestrated by the government so that there is a dynamic and mutually beneficial relationship.
"I suspect that there are parties who create chaos and deliberately build a dichotomy. As if this is the people and this is the corporation; this is a weak economy and this is a conglomerate. My guess is that someone is fishing in troubled waters.
So Warung Madura is not a threat to modern retail?
No. For example, when I come home at night and want to buy drinking water, yes I go to Warung Madura. There are modern retail that are open 24 hours but it is limited, the zone is clear, and not all areas have it.
In West Sumatra, modern retail is not allowed to enter, and the local government chooses to support local retail. How do you analyze this kind of local protectionism model?
"We'll see the retail conditions, is it progressing or not? Because there is a monopoly there, yes. Where is the expansion? The essence of business is expansion. When business does not expand, business does not grow. With expansion, there is development, there is growth. If there is no development, then it's like that. In fact, it's not growing, it's often falling. How is the absorption of labor? How much is the contribution of the tax? And so on. The current trend is that people want to get good goods at affordable prices.
Remember, competition is the ladder of growth. So, don't be afraid of competition. Without competition there will be no creativity, no out-of-the-box thinking.
Entrepreneurs always ask for certainty when they will develop their business and investment. If that doesn't exist, what will happen?
"There are two points that we always raise on various occasions. First, ease of doing business so that we can invest, expand, and have an impact on growth, employment absorption, tax growth, and growth in production capacity. Second, legal certainty or regulation.
Well, this is like two sides of a coin that cannot be separated when we hope for growth. Except, we don't really hope for growth, but rather economic contraction.
Then the important thing is also regulation. Regulations are made for business actors and the community. Often the government makes regulations without talking to business actors.
Regarding the regulation of modern retail, are they only allowed on the main road or can they enter the alley?
There is a regulation from the Minister of Trade Regulation, but the rules are old. This should be updated. Now e-commerce is rampant without limits, while modern retail is still castrated. Even now the market is free. It is hoped that e-commerce will also contribute to its tax.
What must always be remembered, nothing changes except change itself. That is, if you do not follow the changes or do not want to change because of the changes, there is only one word: extinct. Crushed by change.
In fact, we know that household consumption in GDP accounts for almost about 52 percent for decades, beyond government spending for exports, imports, and investment. Simply put, if we all remain silent, with our people who number 285 million people still eating and drinking, the economy will definitely grow by about 5 percent. That has moved the economy, now just take care of it.
"Our household consumption growth is around 4.5 to 4.8 percent. That is, without any discounts, without any mitigation, without any regulations and so on, people will still eat and drink. Now how do we make sure that the sector that contributes greatly is not eroded. That's the point.
Actually, this controversy depends on the conductor who can orchestrate the existing elements into a good orchestra, like you said earlier, right?
Yes, everything; KDMP, grocery stores, traditional markets, modern retail, and others can be coordinated into one in an ecosystem. We are ready to collaborate, only the government has not been able to synergize everything. Don't let the presence of one kill the other. This needs to be an important note.
The Other Side of Roy Nicholas Mandey: Traveling the World, Picking up New InspirationTraveling for Roy Nicholas Mandey is a vehicle for refreshing and finding inspiration in the business arena he is involved in. (Photo: Bambang Eros VOI, DI: Raga Granada VOI)
There is one hobby that Roy Nicholas Mandey often does outside of his busy work as a professional and also the Chairman of the Global Retail Association (AGRA) which is traveling. After traveling he got new ideas and inspiration.
"Traveling is something fun. If I have never visited an area, this will be a challenging adventure. If I have been there, the challenge is how to find another side that I have not found before. And if I travel, my networking increases," he said.
Not long ago, Roy traveled to Chongqing, Chengdu, and Shanghai, China. "I went to China for almost two weeks to explore so that Indonesian spices could get there. During the visit, the weather was extremely hot, so my face was a little red," continued Roy, who also serves as Deputy Chairman of the Indonesian Spice Association.
Apparently, continued Roy, this is a great opportunity because many Chinese dishes use spices. While spices cannot grow well in a four-season country. "In China there are almost 120,000 hotpot restaurants. Cloves, cinnamon, ginger, and other spices are much needed there to warm the body," he said.
In addition to China, continued Roy, Uzbekistan and Russia also need spices. "In addition, they also need coffee," he said.
"And thank God, there are some requests that have been going on. Well, now I still want to continue to other countries. While traveling, I will introduce Indonesian products," he continued.
When the global political situation is turbulent as it is now, the impact is also felt on the retail business. "The main impact is oil supply, yes. When the Strait of Hormuz is closed, oil supply is hampered," he said, hoping that peace will be achieved soon, although Indonesia also gets oil from Russia, the US, and Africa.
In addition to oil, naphtha which is the raw material for plastic is also still from the Middle East. "The retail industry needs plastic very much. We hope that there will be breakthroughs to find substitutes for plastic. The government must be present to help entrepreneurs," he said.
Miniature World in RussiaBefore traveling, Roy Nicholas Mandey's advice is to plan in advance so that you can be more economical. (Photo: Bambang Eros VOI, DI: Raga Granada VOI)
Roy Nicholas Mandey was very impressed when visiting Kaluga, Moscow. "There is a miniature worldwide, a miniature of the world. So there is an Indonesian House, a Sri Lanka House. Below it there are UMKMs that present products or anything that can be sold," he said.
According to him, this concept is very good if it can be developed in Indonesia. "We can feel staying in a traditional house from other countries," he continued.
Indonesia, said Roy, has a lot of tourism potential, but it has not been developed to its maximum. "It's just how to promote it, because our tourism level is still inferior to Malaysia. Although our country has a lot of tourism potential," he said.
Tips Traveling AbroadWhen shopping abroad, said Roy Nicholas Mandey, buy items that are truly unique and not in Indonesia. (Photo: Bambang Eros VOI, DI: Raga Granada VOI)
Before going abroad, the purpose must be clear; leisure or business. "That's why you have to make good planning. If I usually travel while doing business. The tip is, bring enough money. Remember, if you shop, buy unique items that are not in Indonesia. And if you shop, don't be excessive and vulgar so that you don't become a target of crime," he said.
He never had a bad experience while in Turkey. "There are also red axes there. I saw them in groups of about six people holding a car to be robbed," he said, reminding him to always be vigilant, because in every country there is always crime.
For shopping, if you can be cashless, it will be safer. "Just prepare a little cash for tips," he continued. Traveling, said Roy, will be less expensive if it is prepared in advance.
With good planning, traveling will not be dizzy. "So when you travel home, your body is fresh and full of new inspiration," said Roy Nicholas Mandey.
"Now the era has advanced, everything is digital. What must be done according to me is synergy and collaboration. It is not the time to stand alone. If you stand alone you are not strong. It's time for us to be a nation, a land of mutual embrace. This is what is in line with Pancasila."
Roy Nicholas Mandey
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