The Bali authorities have seriously complicated life for chain stores. The parliament has passed a resolution that strictly limits not only new stores but also introduces additional rules for those already in operation. Retail is being restricted to save traditional markets and small businesses from corporations.
The main blow for Mart, Cirkle K, Indomaret, and Alfamart is the effective ban on opening new chain supermarkets in rural areas and traditional villages. Officials explain that investments should not disrupt the traditional Balinese way of life. Traditional markets and warungs (UMKM) are described in the law as the foundation of Bali's economy.
New retail outlets are now permitted only in urban agglomerations, which are not numerous on the island. Additionally, the distance between stores and quotas for their numbers in one area are strictly regulated.
The law requires each chain store to allocate at least 30% of its sales area or advertising space for promoting products from local micro and small enterprises.
“This is not just a formality. The partnership must be real and sustainable. Local producers should not be merely an addition to the range,” said the head of the special committee Anak Agung Gede Agung Suyoga.
To see how the law will work in practice, the Bali parliament has recommended imposing a temporary moratorium on issuing new licenses for retail chains.
Bali Governor Wayan Koster supported the initiative, noting that regulation is not aimed at a complete business ban, but at creating harmony. “We must not allow large players to stifle smaller ones. Everyone should coexist in balance,” he emphasized.
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