Continued Decline: Indonesia's Traditional Grocery Stalls Dwindle to 3.9 Million
Jakarta – The Association of Indonesian Street Traders (APKLI) has recorded that the number of traditional grocery stalls (warung kelontong) across Indonesia continues to decline, with approximately 3.9 million units remaining by the end of 2025.
APKLI General Chairman Ali Mahsun stated that this figure represents a drastic decline from 6.1 million in 2007, meaning more than 2.2 million traditional stalls have closed due to rapid modern retail expansion and more permissive licensing policies.
During an audience with Minister of Cooperatives Ferry Juliantono in Jakarta on Thursday, 26 February, Ali stressed that modern retail policies must not come at the expense of small-scale businesses.
“We are not opposed to modern retail, but we want the people’s economy to function, to reclaim economic sovereignty for the people. Village economies should serve villages, sub-district economies should serve sub-districts,” he stated.
On this occasion, APKLI proposed strengthening the enforcement of government regulations on the arrangement of traditional markets, shopping centres, and modern stores.
Ali highlighted the importance of enforcing classification rules for modern stores or minimarkets with floor space under 400 m², supermarkets between 400-5,000 m², and hypermarkets exceeding 5,000 m², as well as implementing zoning that considers the social and economic impacts on small traders.
The arrangement of shopping centres, supermarkets, and modern stores is governed by Government Regulation No. 29 of 2021 on the Implementation of Trade.
In PP 29/2021, it is emphasised that the establishment of shopping centres or supermarkets must take into account the social and economic conditions of the community, the existence of traditional markets, and SMEs in the area.
The location of establishments must also comply with regional spatial planning for districts and cities. Additionally, modern stores are required to partner with SMEs in product marketing.
Ali also highlighted the spirit of the 2015 Economic Policy Package, which aimed to simplify modern retail licensing without compromising the competitiveness of small businesses.
According to him, since this policy was implemented, more than 2 million traditional grocery stalls have closed due to simplified business licences that also facilitated modern retail expansion.
In the audience, APKLI also supported the government’s initiative to strengthen the 83,000 red-and-white village and ward cooperatives (Kopdes) programme as local economic hubs.
“The Kopdes red-and-white ecosystem with traditional stalls and food enterprises will become a source of tremendous economic strength,” Ali stated.