Regulation of the Minister of Micro, Small, and Medium Enterprises Number 9 of 2025 Mandates a 30% Allocation of Commercial Areas for Micro and Small Enterprises and Imposes a Cap on Rental Rates

Introduction

On 30 December 2025, the Ministry of Micro, Small, and Medium Enterprises (“MSMEs”) issued Regulation of the Minister of Micro, Small, and Medium Enterprises Number 9 of 2025 on the Provision of Promotional and Business Development Spaces for Micro and Small Enterprises in Public Infrastructure ("Regulation 9/2025"). Regulation 9/2025 governs the provision of physical spaces for micro and small enterprises in a standardized and targeted manner, while maintaining the security and order of public infrastructure services.

Regulation 9/2025 implements Government Regulation Number 7 of 2021 on the Facilitation, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises, which mandates ministries, regional governments, State-Owned Enterprises ("SOEs"), Regional-Owned Enterprises ("ROEs"), and private business entities to foster the development of micro and small enterprises. Regulation 9/2025 establishes an obligation to allocate at least 30% of the total commercial area in public spaces for promotional and business development areas, thereby expanding the access of micro and small enterprises to commercial spaces in strategic locations.

Key Provisions

Obligation to Allocate 30% Commercial Area

As set forth in Article 3, ministries/agencies, regional governments, SOEs, ROEs, and private business entities that organize or manage public infrastructure must provide promotional and business development spaces for micro and small enterprises. This obligation includes allocating at least 30% of the total commercial area, including shopping areas and/or strategic promotional areas. This provision applies to public infrastructure such as terminals, airports, ports, railway stations, and toll road rest and service areas (rest areas). For toll road rest areas, the provision of facilities also covers medium enterprises.

Provision Standards and Area Calculation Methods

Article 4 stipulates that the calculation of the total commercial area uses the total floor area for goods or services trading activities, excluding public facilities such as parking, prayer rooms, toilets, green open spaces, and service areas. Meanwhile, Annex A provides calculation guidelines by aggregating the commercial area, shopping area, and strategic promotional area, then multiplying the total by 30% to determine the minimum area that must be allocated for micro and small enterprises. The fulfillment of this area follows the provisions in Article 6 to Article 11, which require affordable access, fair treatment, and facility feasibility (including electricity, water, sanitation, and security), as well as comfort without disrupting the main function of the public infrastructure, and integration through business partnerships. Example Table of the 30% Micro and Small Enterprise Allocation Obligation Calculation (Based on Annex A): The details are presented in the following table:

Forms of Promotional and Business Development Spaces

Under Article 12 and Article 13, public infrastructure managers provide promotional and business development spaces in various physical formats that can be organized separately or in an integrated manner. Managers also provide supporting infrastructure and ensure the facilities include:

1. Exhibition spaces (showrooms), product galleries, or digital billboard areas for promotional needs.

2. Retail spaces, creative spaces (coworking spaces), and warehousing.

3. Joint service centers for production, packaging, or distribution, business incubation spaces, and business training rooms.

Partnership Mechanisms, Timeframes, and Rental Rate Caps

Article 15 stipulates that public infrastructure organizers and/or managers must select and curate micro and small enterprises that will utilize the spaces, with a minimum requirement of holding a Business Identification Number (Nomor Induk Berusaha, "NIB"). Organizers and/or managers must register businesses that do not yet possess an NIB but are currently utilizing spaces in the public infrastructure through the electronic business licensing system, as also governed in Article 20. Article 16 provides that the utilization of space is set out in a cooperation agreement, either directly with the businesses or indirectly through partnerships with cooperatives or associations or organizations of micro, small, and medium enterprises that already have a cooperation agreement with ministries or regional governments. Furthermore, Article 18 determines that organizers and/or managers shall set and periodically evaluate the utilization timeframe of the spaces and may extend it based on performance and the agreement of the parties. Article 19 caps the rental and compensation fees that can be imposed by public infrastructure organizers and/or managers at a maximum of 30% of the prevailing commercial rental rate, and Annex B provides a sample cooperation agreement format covering the rights and obligations, costs, and identities of the parties.

Rights and Obligations of MSMEs

Article 17 stipulates that micro and small enterprises utilizing the spaces have the right to receive facilities meeting feasibility standards, business protection to support development, and fair treatment in their business activities. Businesses must also maintain cleanliness and security, use the spaces according to their intended purpose, and comply with the provisions in the agreed cooperation agreement.

Business Facilitation and Guidance

The central government and regional governments provide facilitation and guidance for micro and small enterprises operating in public infrastructure, as governed in Article 21 to Article 28. This facilitation includes business legality assistance, human resource capacity building through internship and incubation programs, financing access such as credit guarantees or revolving funds, digitalization of business activities, expansion of electronic market access, and protection through insurance and legal aid. The central government or regional governments may also provide subsidies or facilitate space rental costs in public infrastructure for fostered micro and small enterprises, as set forth in Article 29.

Reporting and Supervision Obligations of Infrastructure Managers

Public infrastructure organizers and managers must compile realization reports on the provision and utilization of spaces for micro and small enterprises and undergo periodic supervision at least once a year by the ministry or relevant agency, as governed in Article 30 and Article 32. Managers submit these reports to the Minister of Micro, Small, and Medium Enterprises, the relevant technical ministers, and regional heads based on the location of the infrastructure. The reports are submitted electronically through the ministry's database system at least twice a year, specifically in June and December. Annex C governs the reporting matrix format that must be completed by public infrastructure organizers and managers, containing data that includes the infrastructure name, manager identity, total commercial area, area allocated to and utilized by micro and small enterprises, the number of businesses using the spaces, and the percentage of rental fees imposed. Meanwhile, the implementation of this provision is monitored through coordination meetings involving ministries or agencies, regional governments, SOEs, ROEs, private business entities, public infrastructure organizers and/or managers, and representatives or associations of micro, small, and medium enterprises, as governed in Article 34.

Incentives and Compliance Appreciation

Public infrastructure organizers and managers, comprising ministries or agencies, regional governments, SOEs, ROEs, and private business entities, are entitled to receive appreciation if they fulfill the minimum 30% space allocation for micro and small enterprises and apply the rental rate caps according to the provisions. The forms of appreciation include the issuance of feasibility certificates, national-scale promotional and publication support by the Ministry of Micro, Small, and Medium Enterprises, and financial incentives in the form of subsidies and tax or regional levy relief from regional governments and technical ministers, as governed in Article 35 and Article 36.

Follow-Up on Violations and Administrative Sanctions

Public infrastructure organizers and/or managers are subject to administrative sanctions if they fail to fulfill the obligation to allocate at least 30% of the commercial area for micro and small enterprises. Enforcement is carried out gradually, starting with written warnings, providing public infrastructure organizers or managers with the opportunity to submit a written rebuttal within a maximum of 5 (five) working days from the receipt of the letter. If they fail to submit a rebuttal and persist in not fulfilling the obligation, the violation will be announced to the public. Should the violation continue, the government may issue a recommendation letter to revoke their license as a public infrastructure organizer or manager, as governed in Article 37.

Closing

Regulation 9/2025 obligates public infrastructure organizers and managers, comprising ministries or agencies, regional governments, SOEs, ROEs, and private business entities, to provide at least 30% of their commercial areas for micro and small enterprises, using an area calculation method that excludes public facilities and is accompanied by the fulfillment of access standards, facility feasibility, comfort, and business integration. The provision of these spaces is supported by various facilities such as sales areas, promotional areas, and business development spaces. The utilization is conducted through a selection mechanism and cooperation agreements for businesses that possess or are facilitated to obtain an NIB. In its implementation, organizers and managers must also cap rental costs at a maximum of 30% of the commercial price and provide fair business opportunities through transparent management. The central and regional governments play a role through facilitation and guidance, encompassing legality support, business capacity building, financing access, digitalization, market expansion, and the potential provision of rental cost subsidies. To maintain compliance, organizers and managers must submit periodic realization reports and undergo annual supervision. Administrative sanctions are applied gradually, starting from written warnings and public announcements to recommendations for the revocation of licenses as public infrastructure organizers or managers if the obligations remain unfulfilled. Conversely, organizers and managers who fulfill the obligations may receive appreciation in the form of certificates, promotional support, and fiscal incentives from the government. Through these comprehensive provisions, public infrastructure organizers and managers need to adjust their commercial area management, cooperation schemes, and reporting systems to remain compliant and preserve the sustainability of their business activities.