Restrictions on Modern Retail in Regions from a Utilitarian Perspective Following the Introduction of Risk-Based Licensing Policies
DOI:
https://doi.org/10.25139/lex.v9i4.11058Kata Kunci:
Modern Retail, Risk-Based Licensing, Utilitarianism, Traditional Markets, MSMEsAbstrak
The presence of modern retail outlets in local regions has created a dilemma for economic development. On the one hand, modern retail provides benefits such as increased employment opportunities and access to quality goods at competitive prices. On the other hand, it threatens the existence of traditional markets and Micro, Small, and Medium Enterprises (MSMEs). Following the enactment of the risk-based licensing policy through Government Regulation No. 5 of 2021, the licensing process for modern retail has become easier, thus limiting the regulatory authority of local governments. This study aims to analyze the restrictions on modern retail in local areas from the perspective of utilitarianism and to assess the extent to which such policies provide the greatest benefit for society. The research method employed is a normative juridical approach, incorporating statutory, conceptual, and case studies. The findings reveal that protection for traditional markets and MSMEs remains suboptimal, despite restrictions having been formally regulated through Minister of Trade Regulation No. 18 of 2022 and several local zoning regulations. Implementation in practice still faces challenges such as weak coordination, limited local legal instruments, and the dominance of capital interests. From a utilitarian perspective, restrictions on modern retail are considered good if they balance the interests of modern retail businesses, traditional markets, and MSMEs, thereby creating happiness and utility for the broader society. Therefore, stronger regulations and more effective supervision mechanisms at both central and local levels are necessary to ensure that such policies truly align with the legal purpose of promoting public welfare.
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