The Indonesian government has clarified the reason behind the closure of dozens of Alfamart and Indomaret retail outlets in Lombok, West Nusa Tenggara (NTB), stating that the decision is linked to licensing issues and regional spatial planning regulations rather than any broader economic restructuring programme.
Trade Minister Budi Santoso explained that the shutdown of the modern retail stores is related to local government enforcement of zoning rules and business permit compliance. He dismissed speculation that the closures were connected to the development of the Merah Putih Village/Urban Cooperative programme (Kopdes Merah Putih), which has recently drawn public attention.
According to Budi, the establishment of minimarket outlets in Indonesia falls under the authority of regional governments, which are responsible for ensuring that business operations comply with local spatial planning regulations (RTRW).
“The establishment of minimarkets in the regions is under the authority of local governments. So if you build a minimarket, it must comply with the regional spatial plan,” Budi said at the Kartini Building in South Jakarta on Monday (25 May).
He added that the central government believes the local administration in Lombok is likely conducting a broader restructuring of retail locations to ensure compliance with zoning rules. He stressed that there is no additional policy issue beyond licensing and spatial planning.
“I see that the local government may be reorganising things. So there is no other issue; it is purely related to licensing,” he said.
The ministry, he added, has been coordinating with relevant authorities to better understand the situation and assess the impact of the closures, particularly on workers affected by the shutdown of retail outlets.
Budi also confirmed that the central government is currently in communication with the regional administration to explore possible solutions, including relocation options or adjustments to business permits so that affected stores may continue operating within legal zoning frameworks.
“We are discussing whether the solution involves relocating the permits or something else. We are communicating on that. Whether the stores can continue operating by adjusting to the regional spatial plan in each area,” he explained.
He further emphasised that policies related to zoning and minimarket distribution remain under the jurisdiction of regional governments. According to him, each region in Indonesia has different spatial planning regulations, meaning that enforcement and adjustments vary depending on local policy frameworks.
“If a regional government wants to reorganise, I think the goal is good. Because every region has its own spatial planning and territorial arrangement,” he said.
The clarification comes amid growing public attention after reports emerged that 25 modern retail outlets, including Alfamart and Indomaret branches in Lombok, were ordered to cease operations due to alleged violations of zoning rules, particularly concerning proximity to traditional markets.
The closures have triggered concern among workers and local communities, particularly regarding potential job losses. In response, hundreds of employees from affected outlets staged a protest outside the Lombok Regent’s Office, demanding clarity on their employment status and urging authorities to provide solutions to prevent mass layoffs.
Footage circulating on social media showed employees affiliated with the Alfamart workers’ association calling for government intervention. Protesters expressed concern that the closures could result in widespread unemployment at a time when economic conditions remain challenging.
“We ask for the attention of our leaders and solutions from all of you. Many of our colleagues are now becoming newly unemployed, while the economic situation is increasingly difficult,” one worker said during the demonstration.
The local government of Lombok previously ordered the closure of 25 modern retail outlets, including Alfamart and Indomaret stores, citing violations of zoning regulations that govern minimum distance requirements between modern retail businesses and traditional markets.
Officials said the enforcement action was part of an effort to maintain balance between modern retail expansion and the sustainability of traditional markets, which remain an important part of the local economy.
The controversy highlights ongoing tensions in Indonesia between rapid retail expansion by national chains and local efforts to regulate commercial zoning in order to protect small businesses and ensure equitable economic development.
As discussions continue between the central and regional governments, stakeholders are seeking a resolution that balances regulatory compliance, business continuity, and employment protection for affected workers in Lombok.
