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4 Reasons Why There Are No Indomaret and Alfamart in Padang

Jakarta

Minimarket outlets like Indomaret and Alfamart very easy to find in Jakarta, or in other cities. Both are indeed scattered in almost all parts of Indonesia, except in Padang, West Sumatra.

The absence of Indomaret and Alfamart in the city of Padang often invites question marks. In fact, Padang is one of the big cities in Indonesia which is often visited by tourists.

So, why are there no Indomaret and Alfamart in Padang?

Quoted from CNBC Indonesiahere are some reasons why there are no Indomaret and Alfamart in Padang.

Can’t Get Local Government Permit

The reason is that the West Sumatra regional government (Pemda) did not give permission to the franchise company. According to the West Sumatra Regional Government, it is feared that the existence of the two outlets will kill small businesses and traditional traders in the Padang area.

Worried It Could Damage the Regional Economy

The presence of these two minimarket franchises is believed by the local government to damage the regional economy, in the long run. It is feared that people will be more interested in visiting modern shops with complete goods and fixed selling prices.

Retail businesses such as Indomaret and Alfamart are indeed able to spread throughout the region to the countryside with competitive prices. If this happens, the existence of modern minimarkets will make customers no longer want to visit stalls or grocery stores.

Prioritizing Local Community Effort

The local government does not give a permit as well as a reason to protect local stalls and minimarkets by encouraging economic progress in the MSME sector. This policy in fact received a positive response from various groups outside West Sumatra.

The local government and the people of West Sumatra believe that local residents are also able to create a modern retail outlet (MRO) business, a kind of department store owned by individuals without the presence of the two minimarket giants. Moreover, Minang people are known as business people who have traded habits since ancient times.

Substitute for Indomaret and Alfamart in Padang

There are still convenience stores or department stores managed by local residents. The West Sumatra Regional Government has also designed a substitute for minimarkets, which can be enjoyed by the public, namely “Halal Mart”.

Halal Mart was designed by the previous Mayor of Padang. All goods provided will be produced by the original city of Padang, so it will not alienate traditional traders.

Well, that was the reason why is there no Indomaret and Alfamart in Padang?. Hopefully it can add to the understanding of all detikers. So, if you go to Padang, don’t be surprised anymore!

(eds/eds)

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