Bali Governor Wayan Koster explained that restrictions on chain-operated modern retail stores are intended to prevent small local businesses from being marginalized, similar to what has happened to the Betawi community in Jakarta.
He conveyed this while responding to views from the Bali Regional House of Representatives regarding the Draft Regional Regulation on the Control of Chain Modern Retail Stores in Denpasar on Monday (22/12/2025).
“This draft regulation on the control of modern chain stores is urgently needed because Bali is a small region that is shrinking, while our population is growing. Therefore, we must prepare adequate economic space for local businesses in Bali.” Koster said.
He warned that without protection, local businesses would gradually be eroded and pushed aside. “If we don’t protect it, it will continue to erode and become marginalized, eventually becoming like the Betawi people, an abandoned area that has spread everywhere. We must be vigilant from now on with the 100-year Bali Plan so that Bali does not become like Betawi in Jakarta,” he added.
The governor reminded lawmakers that Bali is an attractive destination sought after by many parties, both nationally and internationally. While investment and economic activity continue to pour into the island, he stressed that it would be unfair if local communities did not optimally benefit from the growth taking place on Balinese land.
“We, the people of Bali, are extraordinarily dedicated to performing ceremonies in our banjars, villages, districts, and provinces at their respective levels every day to preserve Bali so that the ceremonies run smoothly and the traditional events run well. Therefore, Balinese people should not be deprived of the opportunity to take advantage of this.” he said.
For this reason, Koster expressed his desire for the draft regulation to be finalized as soon as possible so that economic circulation can be more directly felt by local Balinese communities.
Proportionate Sanctions
Responding to Bali Regional House of Representatives’ questions regarding zoning considerations for the development of modern retail outlets, he explained that authority would rest with regencies and municipalities, aligned with their respective Detailed Spatial Plans.
“The determination of zoning and distance will be aligned with the city/district spatial plan, the social, economic, and cultural conditions of each region, through coordination with the city/district government.” he stated.
Regarding supervision, evaluation, and sanctions, the draft regulation is designed to include a structured and sustainable monitoring mechanism, periodic evaluations of implementation, and effective yet proportionate administrative sanctions.
According to Koster, these measures are necessary to ensure compliance while maintaining fairness in the business environment.
“Regarding concerns about overly restrictive norms, I invite the council to work together to harmonize and synchronize norms so that the content of the draft regional regulation remains in line with higher laws and regulations, is non-discriminatory, and upholds the principles of fairness and proportionality in business.,” he said.
In addition, the draft regulation opens space for regulating partnership schemes, including the use of products of local micro, small, and medium enterprise/MSMEs, empowerment of small traders, and strengthening of local supply chains as part of Bali’s broader trade ecosystem. These efforts are to be accompanied by continuous guidance and capacity-building programs for local MSMEs.
Through this policy, the Bali Provincial Government aims to strike a balance between economic growth and social justice, ensuring that the development of modern retail does not come at the expense of local entrepreneurs, cultural sustainability, and long-term economic resilience for Balinese communities.
Sources: Kompas.com, AntaraNews