Jakarta (ANTARA) – Indonesia’s Trade Ministry said any expansion of modern convenience stores must comply with existing regulations, pushing back against proposals to curb outlets in villages as the government promotes Red and White Village Cooperatives.The statement was delivered by Domestic Trade Director General Iqbal Shoffan Shofwan in response to plans to limit the spread of modern retail stores in rural areas to protect village-based cooperatives.“Supermarkets and similar retail stores are trading facilities already regulated under Law No. 7 of 2014 on Trade and Government Regulation No. 29 of 2021,” he said Saturday.Government Regulation No. 29/2021 defines supermarkets as self-service retail outlets selling a range of goods, including minimarkets, department stores, hypermarkets and wholesale centers.Article 86(1) of the regulation requires that the establishment of shopping centers or supermarkets consider local socio-economic conditions, the presence of traditional markets and existing micro, small and medium enterprises in the surrounding area.Shofwan said retail expansion is permissible provided operators meet those requirements, signaling that compliance — rather than blanket restrictions — will guide policy.The ministry also signaled openness to collaboration between modern retailers and village cooperatives, as authorities seek to balance rural economic development with private-sector investment.Retail chains could act as suppliers to village cooperatives, integrating them into broader distribution networks, Shofwan said.“Once a village cooperative is established, this can certainly be done,” he said, referring to potential supply arrangements.Business licensing for modern retail outlets is processed through the Online Single Submission system, with validation by local governments to ensure compliance with zoning and trade rules.