Govt. Seeks Level Retail Playing Field

The government is planning legislation aimed at ensuring fair competition in the retail sector where large operators, including foreign companies, have been squeezing smaller, local companies, Trade Minister Mari Pangestu said Wednesday (12/9/07).

Pangestu said the regulation will shortly be signed by President Susilo Bambang Yudhoyono and is likely to be issued next month.
"The basic principle of the regulation is how do you allow modern retailers (like supermarkets and hypermarkets) to grow while at the same time help create a level playing field for traditional markets?" she said.

There has been a lot of discussion in recent years about whether the government should restrict the expansion of big retailers or even stop providing them with new licenses.

"The government's position is not to restrict them. The issue here is where they should be located. So the local government must have proper zone planning," she said.

The decree will also tackle possible partnerships between big and small retailers.
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