Want to Open a Madura Warung? Here's How Much Capital You Need

Jakarta — The presence of Madura warungs is highly sought after and valued by a section of Indonesian society. It can be a promising business opportunity because it can yield substantial profits. However, Madura warungs face the challenge of staying open 24 hours. The presence of Madura warungs indeed seems timeless. And almost at every corner of the city, especially in Jabodetabek, Madura warungs can be found.

Primarily because they operate or stay open 24 hours, Madura warungs are a mainstay for people who want to buy necessities on impulse and in small quantities. Madura warungs are also known for offering relatively cheap prices compared with similar shops or modern minimarkets. This strategy is achieved by taking slim profit margins but relying on high sales volumes to continue generating significant profits.

However, as with starting any business, opening a Madura warung certainly requires capital of up to around Rp 13 million to Rp 20 million. This capital is usually used for purchasing initial stock and equipment.

Surya (not his real name), a Madura warung trader in the Petukangan area, South Jakarta, revealed that the initial capital when starting the business reached Rp 15 million. “Back in the early days of pioneering a Madura warung, the initial capital could be as high as Rp 15 million; this was for setting up a display counter, a drinks fridge, and other items,” Surya told CNBC Indonesia.

After that, you also need to prepare licensing such as the Nomor Induk Berusaha (NIB) online via the OSS system, by preparing personal data such as NIK and NPWP.

Then, to open a Madura warung, choosing a location becomes very important because it will affect sales.

Choosing a strategic location is a crucial factor in marketing. Choose a location that is easily accessible, such as in densely populated residential areas, near a main road, or in office areas. The right location can significantly improve sales potential. “The reason for opening on the roadside is to attract more buyers, because here it’s a main road, quite busy,” he continued.

Madura warungs are known for their complete range of products, especially various everyday necessities such as rice, cooking oil, sugar, flour, eggs, soap, detergents, and more. You can add other products such as snacks, beverages, LPG gas, and other household needs such as services selling electricity tokens to attract more customers.

Quality and cleanliness of products are important factors in the Madura warung business. Ensure all products sold are still in good condition.

Maintaining cleanliness of the business premises and product storage racks to keep away from dust and dirt, and prioritising friendly and polite service so customers feel comfortable and valued is also a key to doing business, including Madura warung businesses.

Product arrangement including extra facilities such as a fridge can also be a key attractor for Madura warung customers. A fridge not only functions to display products neatly but also helps maintain cleanliness and freshness of products.