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Modern retail stores in Indonesia dominate 7.06% of public trading spaces, second only to traditional markets (88.52%). This has become a focus for the government because the expansion of modern retail stores can marginalize the existence of smaller shops, such as small grocery stores and kiosks.
The Ministry of Home Affairs Regulation Number 68 of 2012 concerning Franchises for Modern Retail Businesses stipulates that if a company owns and operates a maximum of 150 outlets, at least 40% of any additional outlets must be franchised. Furthermore, several regions also impose restrictions through local regulations (Perda/Pergub).
Currently, according to data from the Central Bureau of Statistics, there are 1,131 modern retail stores in Indonesia, with the highest concentration in West Java (232 units), Central Java (161 units), and DKI Jakarta (52 units).
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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