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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

WARUNG MADURA VS MINIMARKET

By

R M Tedy Aliudin

Head of the UMKM and Cooperative Development Agency of Kadin Indonesia

 

The development of the era, especially in big cities based on money orientation, has caused many activities to be carried out 24 hours. This opportunity is certainly utilised by many parties including business actors, for example food stalls, public transport, and even grocery stalls, which are also open 24 hours.

Not without reason, in addition to the customers who buy, grocery stalls that have been rivaled by the proliferation of minimarkets, must work hard to find ways to survive and develop. By opening 24 hours, it will at least reduce competition with minimarkets. But in some places, many minimarkets also open their business 24 hours.

In addition to being famous for satay, Madurese also have a characteristic that is Warung Madura, which has existed since the 1990s, as the Minimarket began to mushroom, which reduced the income of traditional grocery stalls.

Not a few people are restless with the presence of minimarkets, but it is difficult to stem and even more mushrooming suppresses traditional stalls, without any policies that protect traditional stalls which are Micro, Small and Medium Enterprises (MSMEs).

Warung Madura is no different from other traditional MSME stalls, with a strategy of opening 24 hours, which is not an easy thing to manage. When compared to minimarkets with modern business management, it is difficult to be a rival, even Warung Madura is far less competitive with minimarkets.

In terms of management, financial management, capital, sales and profits, not to mention the minimarket has a convenient location and place of business, more spacious, parking facilities, neat employees, and much more.

While Warung Madura is full of limitations, and needs hard work to open a 24-hour business, in order to survive.

In terms of sales, Madura warungs average Rp 3 million per day, compared to minimarkets which are far above Rp 3 million. For employee salaries alone, minimarkets must spend tens of millions of rupiah.

Warung Madura, is only a Micro, Small and Medium Enterprises (MSME) player, from various sources obtained, should be an example for other MSME players, because of the system of togetherness in a strong brotherhood. Between owners and employees use a profit-sharing system, even 50% of the profits for employees.

Minimarket entrepreneurs' objection to the 24-hour opening time of Warung Madura is not a reason to lose competition, because when the minimarket is closed, Warung Madura remains open, solely to increase sales that are less competitive when the minimarket is open.

The community around Warung Madura also feels greatly helped by the existence of Warung Madura.

If there is a risk of crime that threatens madurese stalls, of course there are already mitigations prepared, as well as other potential risks.

If you look at the local government regulations on the viral issue of madura stalls, there is nothing that regulates the opening and closing times of traditional stalls, only regulating minimarkets.

Regional Regulation of Klungkung Regency Number 13 of 2018 concerning Arrangement and Development of People's Markets, Shopping Centres and Self-Service Stores

 

Third Part

Working Hours Requirements

Article 4

(1) Working hours of Minimarket, Hypermarket, Department Store and Supermarket business actors must be as follows: a. for Monday to Friday, at 10.00 am until 10.00 pm. b. for Saturday and Sunday at 10.00 am until 11.00 pm.
(2) For religious holidays, national holidays or the day of closing the financial year/closing the accounting year until 00.00 WITA.

The government must be wise in addressing the issue of Madura warungs and minimarkets. Even if minimarket businesses object, they should object to being limited to opening until 22.00 WITA, not objecting to the 24-hour opening of Madura warungs.

It is appropriate in a tourist area that is quite crowded, to open a 24-hour business, because there is potential for buyers, except on religious days.

The problem of crime at night should be anticipated if it exists, and it is the responsibility of the authorities to provide security to all citizens.

It is time for the Government to prove its favour, in accordance with Government Regulation number 7 of 2021, concerning the Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (MSMEs), because 92% of the retail market has been controlled by network-based minimarkets, with more than 36,000 outlets throughout Indonesia, it is not appropriate to object to traditional stalls that are open 24 hours.

Hopefully, this problem can be resolved wisely.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry