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Indonesia: Govt to Release Rules on Minimarkets, Retailers

TEMPO.COJakarta – The government will issue a presidential regulation (Perpres) on retailers and minimarket businesses in Indonesia. Coordinating Minister for the Economy Darmin Nasution said the rule will be followed by a Trade Ministers Regulation.

Darmin said in Jakarta on Monday that his ministry has finished discussing the bill.

He asserted that the regulation is not aimed at hampering the development of minimarket and retail businesses, which the public depend on. He said the government wants small and medium-sized businesses to remain alive.

Some of the issues to be regulated include ownership. Darmin said that the business uses a franchise model that allows people to invest in the network. The ministry noted that 65 percent of minimarkets in Indonesia are owned by the minimarket owners, while the remaining 35 percent is owned by individuals or communities who bought the franchise rights.

Another item to regulate is zoning. Minimarkets will not be allowed to open in housing areas, and to open a new store, a company must add the number of its franchise investor.

Source: https://en.tempo.co/read/news/2017/07/04/056888659/Govt-to-Release-Rules-on-Minimarkets-Retailers