Legal Analysis and Implications of Modern Retail Licensing (Case Study: Alfamart and Indomart) In an Effort to Empower MSMEs in Pekalongan City

Abstract

Franchise minimarket chains such as Alfamart and Indomaret have websites accessible to everyone and provide detailed information on how to set up a franchise minimarket. Indomaret outlets are required to be 50–150 m2 in size, while Alfamart outlets are required to be 150–250 m2. The relatively small size of the business space allows for greater opportunities to enter the franchise system. Public interest in shopping at minimarkets has also increased due to the opinion that modern markets (including minimarkets) are tidier, cleaner, and more practical than traditional markets, although many people still choose to be loyal to traditional markets. This represents a shift from functional needs to psychological needs. Functional needs are needs directly related to the form or appearance (performance) of a product, while psychological needs are needs associated with the mental needs of consumers that can be met by shopping or purchasing a product. This research is a qualitative descriptive study. Qualitative descriptive research aims to describe or explain a phenomenon or problem in depth, using qualitative data such as interviews, observations, and document analysis. This research does not aim to test hypotheses or establish causal relationships, but rather focuses on a rich and detailed understanding of a phenomenon. This regulation aims to create a balance between modern retailers and local business actors. The existence of an electronically integrated business licensing system (Online Single Submission/OSS) based on the Job Creation Law has made the modern retail licensing process more centralized. However, the Pekalongan City Government still has the authority to limit or regulate certain aspects, such as zoning and partnerships.