VP Gibran Urges Retailers to Boost SME Visibility and Ease Margins
- 11 Feb 2026 08:45 WIB
- Voice of Indonesia
RRI.CO.ID, Jakarta - Indonesian Vice President Gibran Rakabuming Raka is calling for a structural shift in how Indonesia’s modern retail sector treats local entrepreneurs, demanding that homegrown Small and Medium Enterprises (SMEs) be moved from the sidelines to the spotlight.
In a high-level meeting at the Vice Presidential Palace on Tuesday, February 10, 2026, Gibran urged retail leaders to secure strategic placement and financial concessions to enable local brands to compete head-to-head with global giants.
The Vice President’s directive focuses on "prime real estate" within shopping malls and retail chains, insisting that Indonesian products should be positioned where they are most visible to consumers. This move is a vital step toward ensuring local brands become "masters of their own home."
"Placing local products in locations that are easily seen and accessed by consumers is a concrete step to increase the competitiveness of SMEs amidst the dominance of global products," the Vice Presidential Secretariat noted in an official statement, as quoted by Antara.
Budihardjo Iduansjah, Chairman of the Indonesian Shopping Center Tenants and Retailers Association (Hippindo), highlighted that the Vice President is looking beyond just shelf space.
VP Gibran is specifically pushing for lower rental margins and more favorable consignment schemes for local suppliers, acknowledging that high operational costs often act as a barrier to entry for smaller players.
"Facing challenges in terms of costs and consignment, the Vice President's direction is for the retail sector to provide support, especially for local product suppliers, with lower margins," Budihardjo explained.
Beyond the storefront, the Vice President also endorsed the “Belanja di Indonesia Aja” (BINA) movement, which encourages consumers to shop exclusively in Indonesia.
This joint initiative between the government and various retail associations aims to position shopping tourism as a primary driver of foreign exchange earnings.
By encouraging domestic and international tourists to shop local, the government aims to create a self-sustaining ecosystem that benefits the retail sector and SMEs.
The meeting also served as a formal invitation for the Vice President to attend upcoming national economic milestones, including the Indonesia Retail Summit in August and various shopping festivals surrounding the Lunar New Year and Eid al-Fitr.
With the retail sector increasingly aligned with the government's pro-local agenda, the focus now turns to how quickly these major malls can reconfigure their floor plans to favor the "Made in Indonesia" label. ***
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