The Indonesian government plans to revise two trade ministry regulations on modern retail shops and franchises, which it claims will improve the business climate in the domestic retail industry.
The changes in both rules may include removing the trade minister’s requirements on the sourcing of goods and scrapping the maximum number of retail shops and franchises permitted for business owners, according to Trade Minister Muhammad Lutfi.
The proposed revisions might help eliminate uncertainties and grey areas inherent in both regulations, Lutfi said on Tuesday. "I will attempt to ensure how Indonesian products can get a place in a shop, but at the same time I want to create a conducive climate to trade and investment," he told reporters on the sidelines of a dialogue with stakeholders regarding the issue. Under the 2013 Trade Minister Rule on modern retail shops, ownership of company-owned shops is limited to 150 outlets. It also stipulates that the shops must source 80 percent of goods they trade locally, although exception can be procured through the approval of the trade minister. Apart from that the rule applies retroactively, demanding changes to business entities which have existed even before it was introduced.
(Source: The Jakarta Post)