Politics · Indonesia · 3 hrs ago
Indonesia Drops Mandatory 30% Retail Space for Small-Business Products
Indonesia has ended a rule requiring modern retailers to reserve at least 30% of space for small-business products.
Trade Minister Budi Santoso announced the change at an event in Tangerang on Thursday.
The previous requirement was set out in a 2021 trade regulation.
Budi said the quota was viewed as a barrier to trade, including in connection with concerns raised at the World Trade Organization.
The government says about 80% of small-business products are already sold in modern retail stores, citing data from the Indonesian Retailers Association.
Instead of setting a new quota, officials will encourage partnerships between retailers and small businesses.
Budi said small businesses will need to improve product quality and competitiveness to enter retail chains.
Indonesia has ended a rule requiring modern retailers to allocate at least 30% of shopping-centre space to micro and small businesses or domestic products.
Trade Minister Budi Santoso said the government will instead use partnerships to help small-business products enter retail chains.
Budi said about 80% of small-business products are already sold in modern retail, citing data from the Indonesian Retailers Association.
He said the former requirement was considered a barrier to trade and that the government would not set a new sales quota.
- Who
- Indonesia’s Trade Minister Budi Santoso announced the change.
- What
- The government no longer requires a minimum 30% allocation for small-business products or space. It will use partnerships instead.
- When
- October 15, 2026.
- Where
- The announcement was made at the 41st Trade Expo Indonesia event at ICE BSD, Tangerang.
- Why
- Budi said the previous rule was considered a barrier to trade and that partnerships could help businesses improve product quality and competitiveness.
This story does not have two clearly opposing sides.
Trade Ministry Regulation No. 23 set a requirement for shopping centres to provide at least 30% of their area for business space, promotion or marketing of domestic products.
Trade Minister Budi Santoso said the government would no longer require a 30% allocation and would use partnerships instead.
- Former minimum
- 30% of shopping-centre area
- Regulation
- Trade Ministry Regulation No. 23 of 2021
- Small-business products in modern retail
- About 80%, according to data cited from APRINDO
- Announcement venue
- ICE BSD, Tangerang
What people are saying
The government no longer requires small-business products to make up 30% in modern retail.
The partnership model means small businesses really have to work hard.