Denpasar drafts rule to reserve retail shelf space for UMKM goods
Denpasar is drafting a regulation that would oblige modern retail chains to reserve shelf and marketing space for local UMKM products, as part of a broader push to expand market access and promote inclusive investment through…
By Pandi Muktar
Editor: Mursyid Sonsang
· 3 min read
Denpasar — The Denpasar city government is preparing a regulation that would require modern retail chains to allocate shelf space for products from local micro, small and medium enterprises (UMKM), Deputy Mayor I Kadek Agus Arya Wibawa told a business forum in late July 2026.
Speaking at the Temu Usaha (Business Matching) Penanaman Modal 2026 event at Graha Sewaka Dharma, Lumintang, on Monday, 27 July 2026, Arya Wibawa said the administration is coordinating with the city’s Industry and Trade Office to draft the rules, which could take the form of a mayoral regulation or regional regulation.
According to coverage of the event, the regulation is intended to strengthen the involvement of modern, networked retailers in marketing local UMKM products by requiring them to provide marketing space or quotas for these goods, as well as facilitating licensing for participating businesses.
City officials described the initiative as part of efforts to expand market access and promote more inclusive and sustainable investment in Denpasar, by helping small enterprises “move up a class” through partnerships with larger companies, financial institutions and modern retail networks.
Retail access and inclusive investment
Arya Wibawa said the city is working with the Industry and Trade Office to design provisions that would oblige modern retail chains to reserve a quota for local UMKM products and support these enterprises through simplified licensing procedures.
He framed the planned regulation as a way to give UMKM producers more certainty in reaching consumers, while also pushing improvements in product quality, production capacity and competitiveness so that local businesses can better integrate into formal retail channels and wider markets.
The deputy mayor linked the policy agenda to broader support for UMKM development, including encouraging the use of digital platforms and exploring export opportunities, although detailed export commitments were not set out in the forum’s reporting.
Business matching forum
The Temu Usaha Penanaman Modal 2026 forum, now in its sixth year, was organized by the Denpasar Investment and One-Stop Integrated Services Agency (DPMPTSP) to connect UMKM owners with large businesses and modern retailers.
Official information from DPMPTSP describes the event as a matchmaking forum between UMKM and larger retail and business partners, aimed at strengthening partnerships, addressing marketing obstacles and encouraging cooperation in supply chains and business growth.
DPMPTSP materials state that the forum involved participants from various sectors and was opened by Arya Wibawa with a ceremonial gong strike, under the theme of strengthening UMKM–business partnerships to drive inclusive and sustainable investment in Denpasar.
The agency’s leadership, headed by Ida Bagus Benny Pidada Rurus, has previously highlighted matchmaking forums as a way to foster synergy between micro businesses and medium-to-large enterprises, and to seek solutions to challenges faced by small firms amid rising competition.
Next steps for regulation
While the city has signalled its intent to regulate shelf space and marketing support for UMKM in modern retail outlets, officials have not yet publicly specified the size of any quota, the categories of retailers that will be covered or the date when the new requirements will take effect.
Data from Denpasar’s open data portal show hundreds of cooperative and UMKM entities registered in the city, underscoring the potential scale of businesses that could ultimately be affected by the forthcoming regulation, once details are finalised.
The 27 July 2026 forum itself brought together a selected group of UMKM participants for business matching and does not represent the full pool of enterprises that may become eligible under the proposed rules.
Sources
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