Bali Indonesia 4/11/2025, WorldWartaGlobal. Id
Recently, Governor Koster announced a controversial policy of closing Indomaret and Alfamart outlets in his region.
The local government argued this measure was an effort to empower Micro, Small, and Medium Enterprises (MSMEs).
However, this policy has drawn sharp criticism as it is seen as an outdated solution and fails to understand the complexities of the modern economic ecosystem, from business law to supply chains and community needs.
First, it is interesting to highlight the view that MSMEs are currently considered "old-fashioned" and less relevant to current developments. This assumption also reflects Governor Koster's failure to understand the importance of digital transformation and MSME modernization.
In the era of Industry 4.0, MSMEs are no longer limited to traditional production with simple technology, but are increasingly supported by digital platforms, e-commerce access, and innovative business models. Therefore, empowering MSMEs appropriately does not simply mean closing established modern outlets like Indomaret and Alfamart.
Second, the existence of these modern minimarkets is not merely a competition for small businesses. Indomaret and Alfamart play a crucial role in the efficient distribution of basic necessities at competitive prices, supporting supply stability across various regions, and providing easily accessible options for consumers. Closing these outlets without a clear transition plan could disrupt the supply chain and harm consumers, particularly low-income communities who need easy access and affordable prices. From a regulatory and legal perspective, this move has the potential to create serious problems. Closing minimarket outlets without a strong legal basis and without dialogue and compensation can lead to legal and investment uncertainty.
This not only harms businesses but can also negatively impact the regional business climate, ultimately reducing local competitiveness and economic growth. Finally, empowering MSMEs requires a more comprehensive, systematic approach.
This includes easy access to financing, skills and management training, the use of digital technology, and extensive marketing networks to enable MSMEs to compete in the modern market. To date, there has been no concrete plan from local governments to strengthen the MSME ecosystem comprehensively, beyond the rhetoric of shutting down large competitors.
Governor Coster's policy, while appropriate if intended to support MSMEs, unfortunately reflects more of a reactive policy based on outdated assumptions without a long-term vision.
In fact, facing global challenges and increasingly complex economic dynamics requires innovative and adaptive measures that integrate all elements of economic actors, not simply replacing the old with the new unilaterally.
Therefore, closing Indomaret and Alfamart is not the right solution for empowering MSMEs and developing the local economy. Instead, this action has the potential to be a step backward, reducing the scope for business actors and harming the wider community.
Local governments should focus on modernizing MSMEs and creating a healthy and sustainable ecosystem so that economic growth can be enjoyed by everyone.
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