Jakarta. Rapid expansion of modern retailers have led to a sharp decline in Indonesia's mom-and-pop stores, coloquially known as "warung kelontong", according to the street vendor association APKLI.

Warung is typically family-owned neighborhood convenience shop. One usually finds a warung on the street corners. These shops usually sell snacks, beverages, and even other staple goods. These small stores have become part of the daily lives of many Indonesians, but they have declined in popularity as their customers go to modern retailers.

In 2007, Indonesia was home to 6.1 million warung kelontong. In other words, around 2.2 million of those mom-and-pop shops had gone out of business. APKLI Chair Ali Mahsun attributed the sharp decline to the government's simplified licensing for modern retailers, which led to their rapid expansion.

"We are not against modern retail, but we want the people's economy to rotate, including the rural economy," Ali told Cooperatives Minister Ferry Juliantono on Thursday, as reported by the state news agency Antara.

A 2021 government regulation on trade states that the establishment of shopping centers or supermarkets must take into account the social and economic conditions of the community, traditional markets, and small businesses. Modern stores are also required to partner with small enterprises.

As uncertainties loom over Indonesia's mom-and-pop shops, APKLI pins its hopes on the nationwide cooperatives program. The government is banking on the launch of 83,000 community cooperatives to spur growth. These cooperatives will be scattered across Indonesia's villages and sub-districts.

"This cooperative ecosystem, with its grocery and culinary stalls, will be a source of enormous economic strength," Ali said.

Ferry said that the government would improve the supervision and regulatory enforcement of modern retail.

"We will submit APKLI's proposal for review with colleagues from the association of district/city governments throughout Indonesia and regional heads to address this issue as wisely as possible," Ferry said.

Add as a preferred source on Google +