TEMPO.CO, Jakarta - The Chairperson of the Indonesian Retail Entrepreneurs Association, Solihin, confirmed the temporary shutdown of dozens of modern retail outlets in Central Lombok Regency, West Nusa Tenggara. "There are a total of 25 shops, including franchise stores," Solihin said on Tuesday, May 26, 2026.
Solihin stated that these modern retail stores were temporarily closed because they were deemed in violation of zoning distance regulations between retailers and traditional markets, as mandated by Regional Regulation Number 7 of 2021.
Despite being forced to close for several days, Solihin noted that the local government and the Regional House of Representatives (DPRD) have now agreed to let the affected retailers resume their operations. "To provide opportunities for investors to do their best in Central Lombok," he said.
Solihin explained that the reopening permit was granted on the condition that modern retail stores violating the zoning limits must relocate their premises once their current property leases expire.
According to Solihin, the distance violations occurred because the local government did not just measure the distance between modern retailers and established traditional markets; they also factored in temporary, seasonal pop-up markets when calculating the layout. "That is the explanation from the franchise owners themselves," he said.
He also confirmed that no store employees were laid off or negatively affected during the brief shutdown. Solihin stated that the local government eventually allowed the stores to reopen.
Solihin expressed hope that this case would serve as a reminder for companies to adhere to localized regulations to prevent similar disputes from disrupting business in the future.
Meanwhile, Trade Minister Budi Santoso stated that the central government is coordinating with local administrations to anticipate the regional impact of these minimarket chain closures in Lombok.
He mentioned that the government is weighing options to adjust business locations to guarantee full compliance with applicable spatial planning laws. "We are discussing whether they can continue to operate by adjusting to the spatial planning rules in their respective regions," Budi said in Jakarta on Monday, as quoted by Antara.
Budi clarified that the enforcement actions against outlets like Alfamart and Indomaret strictly boil down to licensing and the ongoing rearrangement of regional spatial zoning, which falls squarely under local government jurisdiction. "There are no other issues; this is purely related to licensing," he concluded.
Budi explained that the closure of outlets like Alfamart and Indomaret concerns licensing and regional spatial planning management under the authority of the local government. "There are no other issues; this is only related to licensing," he said.
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