Cak Imin Says Indomaret-Alfamart Threatens MSMEs, Coordinating Ministry For Human Development And Culture: Government Is Not Prohibited, But Equalizes Fair Business Chains

Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar. BETWEEN/HO-Kemenko PM

The Coordinating Ministry for Community Empowerment (Kemenko PM) emphasized that the government is not turning off major retailers such as Indomaret and Alfamart, but rearranging the business system to be fairer for MSME actors.

This explained the statement by the Coordinating Minister for Community Empowerment (Menko PM) Muhaimin Iskandar or Cak Imin which highlighted the existence of a modern retail network which was considered to erode the economy of the community at the village level.

"The government is not turning off Indomaret and Alfamart, not a ban, but is doing fair business chain distribution," said Deputy for Community Economic Empowerment and Protection of Migrant Workers at the Coordinating Ministry for Human Development and Culture Leontinus Alpha Edison, Thursday, October 30.

He explained that Cak Imin's words about the big retail threat to MSMEs should not be interpreted as a ban on business, but an encouragement so that competition in the market runs healthy.

"Healthy markets are markets that grow in healthy competition with the presence of measurable protection from the government for all business actors of various scales," he said.

Leon highlighted the difficulty of small businesses such as Madura stalls and grocery stores competing with large capital retailers. If left unchecked, many MSMEs have the potential to die, even though they absorb 97 percent of the national workforce.

"Don't just count how many people work at Alfamart and Indomaret, but also count how many small shops died," he said.

The Coordinating Ministry for Human Development and Culture is now preparing a policy of structuring modern minimarket operational permits in the regions so as not to kill local businesses. Leon gave an example of the steps taken by the West Sumatra Provincial Government and the Padang City Government to prohibit the establishment of modern franchises as an effort to protect MSMEs.

"The point is about structuring modern minimarket franchise business permits. We want local governments to be able to protect and empower MSMEs, as well as create business justice for them," said Leon.

"We don't want to kill (Indomaret and Alfamart), but we are protecting those who are unable to protect themselves," he added.

Previously, Cak Imin had the dominance of two big retailers such as Indomaret and Alfamart, causing MSME players to lose their economic space in the local market.

"We understand very well the giant retailers that enter our villages have even killed the people's economy. Including killing MSME players. Frankly, the octopus giants are called Indomaret and Alfamart, which really carries threats and dangers to the growth of our small and medium enterprises," said Cak Imin, Tuesday, October 28.

According to him, local governments are now facing major challenges to protect the village economy so as not to be eliminated by a large distribution system controlled by national retail corporations. Several regional heads have even begun to prepare regulations to restrain business expansion which is considered not to provide space for small business actors in their area.

"Many regents are very worried and then many regents build regional regulations to anticipate octopuses that are so strong from downstream to upstream, producers to distribution to one point," said Cak Imin.