Vice House Speaker Urges Govt to Protect Small, Medium Suppliers

    Antara - 20 September 2021 09:57 WIB
    Vice House Speaker Urges Govt to Protect Small, Medium Suppliers
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    Jakarta: The House of Representatives Deputy Speaker Rachmat Gobel has urged the Indonesian government to consistently protect small and medium entrepreneurs supplying goods to mini markets in the country.

    "Don’t let them get involved in unlimited free competition. They will no doubt lose to minimarkets managed by giant companies," the Indonesian parliament member said in a written statement released on Sunday.


    He made the remarks after receiving Chief of the Suppliers Association Yeane Lim at his office in the Parliament Building. Lim complained about a plan to revise the Trade Minister’s Regulation No. 23 of 2021 concerning Guidance for the Development, Arrangement and Control of Department Stores and Super Markets.

    The planned revision of the regulation issued on April 1, 2021 will be made to Article 10 and Article 11.

    Article 10 of the regulation sets the maximum number of self-managed outlets at 150, while Article 11 sets the maximum amount of fees charged to suppliers at 15 percent of the total trade requirement costs.

    The provisions in Article 11 are the result of revision of Article 9 of the Trade Minister’s Regulation No, 70 of 2013. In the old regulation, the maximum amount of fees was set at 15 percent. In addition it also carried a clause “except otherwise stipulated based on an agreement” between supplier and mini market owner.

    "The clause ‘except otherwise stipulated’ is a rubber article wherein the stronger can pressure the weaker," Gobel said.

    Gobel said he supports the Trade Minister’s Regulation No. 23 of 2021 signed by Trade Minister Muhammad Lutfi

    "Go ahead with it. It is already good. Don’t easily bow to the stronger. It is a test for an official when he defends and protects the weaker," he said.

    Moreover, the Trade Minister’s Regulation No. 23 of 2021 was put into force only a few months ago.

    He said President Joko Widodo has adopted a good policy to encourage micro, small and medium enterprises (MSMEs).

    "They have received incentives and several other supports. These all will drive the people’s economy and create jobs in great numbers. But if Article 10 and Article 11 are revised, then large scale businesses will take over the incentives and consequently, MSMEs will finance the large scale businesses,” he said.

    He said ministerial policy must support the vision of President Joko Widodo in defending MSMEs.


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