Numerous sources agree that the first Warung Kelontong Madura (Madura grocery stalls) appeared in Jakarta in the 1990s and early 2000s. These businesses were pioneered by migrants from Sumenep Regency, East Java, who were seeking business opportunities in the capital. They generally settled in the Tanjung Priok area of North Jakarta, which became the initial hub for the Madurese migrant community. Interestingly, their initial business was not a grocery store; these pioneers started by selling wooden building materials brought from Kalimantan. The shift from selling wood to operating a general grocery store demonstrates their high flexibility and adaptability, as well as their ability to identify underserved market gaps. From there, Warung Kelontong Madura began to multiply in various regions across Indonesia, especially on the island of Java.
This business model evolved into the grocery stalls we know today. The explicit use of the name “Madura” in “Warung Madura” represents the identity and origin of the owners. This naming has become a kind of informal brand that identifies the stalls with a unique work ethic, service, and business model.
While many credible sources point to Jakarta as the starting point for Warung Madura, some other views mention Surabaya. Certain parties in Surabaya believe that the city was the initial center for the spread of Warung Madura, given its geographical proximity to Madura Island, which makes Surabaya the “second city” for the Madurese people. They argue that the authentic model and design of Warung Madura can be found there. However, this perspective does not entirely contradict the claim about Jakarta. Both claims can be understood as part of a complex genealogy. It is possible that grocery stores owned by Madurese people existed in Surabaya earlier, in line with historical migration patterns to East Java. Nevertheless, the phenomenon of “Warung Madura” as a structured business model with strong branding, consistent 24-hour operations, and a clearly identifiable pattern of expansion most likely developed and went viral in Jakarta during the 1990s and 2000s. In other words, Jakarta is where this phenomenon “got its name” or “became a brand,” while Surabaya is its historical hub.
1.1 Characteristics
Warung Madura, which can now be easily found in every corner of major cities like Jabodetabek, Yogyakarta, Malang, Surabaya, Bali, and even smaller towns on Java, is not just an ordinary grocery store. Its public identity is formed by a series of unique and consistent features. One of the most prominent is its operational hours, which are known to be 24 hours a day, often without a single day off. This has even led to a joke among the public that the store will only close when the apocalypse happens, and even then, it will only be for half a day. This business model is not limited to one or two stalls but is a widespread characteristic throughout Indonesia.
Beyond that, Warung Madura also has distinctive physical features, such as green shelves filled with drinks, instant noodles, or other basic necessities; roadside gasoline sales with flickering lights; a transparent glass refrigerator; and horizontal cigarette displays at the outer storefront. Although not as large as a modern convenience store, these stalls are known for selling a wide range of goods at affordable prices. This phenomenon has existed since the initial migration of the Madurese community to Jakarta in the 1990s, and over time, their success has drawn attention, especially for their ability to survive and even flourish amid the pressure from modern retail giants like Indomaret and Alfamart.
1.2 The Vital Role of Social Capital and Family Networks
The success of Warung Madura is inseparable from the central role of social capital, particularly kinship networks. The establishment and operation of a stall often heavily depend on family and relative connections. When a new migrant arrives, they are openly welcomed and assisted by fellow Madurese people, a strong display of solidarity born from primordial bonds. While some studies suggest that Madurese migrants’ trust in local communities abroad tends to be low, this trust is very high and intense among fellow Madurese migrants.
The norms of honesty and mutual cooperation are the main pillars underlying their business activities. This narrow but intense network, which can be described as “familistic,” creates a sufficient level of trust to allow for informal transactions, such as capital loans among relatives without the need for banking formalities. This is a unique and effective business logic that is difficult for other business models to replicate.
The 24-hour operational model, a hallmark of Warung Madura, is made possible by an efficient and adaptive collective work system. The stallkeepers, who are often a husband-and-wife team, implement a flexible shift-sharing system to ensure the stall stays open around the clock. Additionally, there is a worker rotation system, where workers abroad can work for several months before returning to their hometown for a holiday, with their position filled by another relative. Initial capital often comes from internal loans, such as from relatives or friends who have already found success. This system allows for expansion without reliance on formal banking institutions that may be difficult for small communities to access. This model also shows a hidden dependency. Although it seems efficient, the system is highly reliant on the continued supply of labor and capital from kinship networks, which could become vulnerable if this circulation were to stop.
1.3 Position Between the Informal Economy and Modern Retail Capitalism
Rather than competing directly, Warung Madura and modern retail stores like Indomaret or Alfamart often coexist, filling different market segments. Modern retail focuses on convenience, a structured product range, and locations on main roads. In contrast, Warung Madura operates in densely populated areas or small alleys, serving urgent needs and customers with limited purchasing power who require items sold individually.
The table below compares the business models of both, reinforcing the argument that Warung Madura is not a competitor but a business entity with a different operational logic that coexists with the larger economic system.
| Key Indicator | Warung Madura | Modern Retail (Indomaret/Alfamart) |
| Operational Hours | 24 hours, almost without a break | Standardized, not always 24 hours |
| Capital | Social capital (family/kinship networks) | Financial capital (corporations) |
| Service | Personal, familiar, allows “credit” | Standardized, without personal interaction |
| Goods Sold | Flexible, sells in loose quantities | Standardized, focuses on large packaging |
| Location | Small alleys, densely populated areas | Main roads, commercial areas |
| Price Flexibility | Can be negotiated, unexpected discounts | Fixed prices |
| Payment System | Cash, QRIS, credit | Cash, card, digital, QRIS |
This table shows how Warung Madura is able to survive and coexist by filling market gaps not served by modern retail. They don’t fight against retail capitalism but rather become a part of the broader economic ecosystem, proving the resilience of the micro-economy amid the onslaught of the big market.
1.4 A Symbol of the Diaspora Economy: A Blessing or Economic Fragility?
This phenomenon extends beyond the success of a micro-business. Warung Madura is a real manifestation of the Madurese community’s diaspora economy, particularly from Sumenep. This term refers to an economic system centered on migration, the strengthening of ethnic networks, and the flow of capital (remittances) back to the homeland. It is a circular system that connects urban centers with villages in Madura.
Their strength in competing with modern retail does not lie in a similar business model but in their ability to fill market gaps that are not served. While modern retail targets the mass market with standardization, Warung Madura serves the urgent needs of the community, offering flexible services, sales of individual items, and even a “credit” system for loyal customers. This shows that they do not fight a frontal battle against retail capitalism but operate within a different market niche, an adaptation strategy that allows them to coexist and not be easily displaced.
A critical question at the core of this entire phenomenon is: Is the success of Warung Madura abroad a blessing for the villages of origin, or is it a symptom of hidden local economic fragility?. The existence of these stalls is clear proof of persistence, but at the same time, it also reflects conditions in the home villages that may not be able to provide decent economic opportunities, forcing the productive-age population to migrate. This report will delve into this paradox in the following sections, highlighting how strength on one side can be a source of fragility on the other.
Remittances Are Consumptive and Cause a Crisis of Local Sector Regeneration
The flow of remittances, or money sent from migrants in the city, visibly has a positive impact on the villages of origin in Sumenep. This money directly increases purchasing power, boosts consumption, funds education, and is often used to build or renovate luxurious homes, which become a symbol of the migrants’ success. A small portion of remittances is even allocated for the development of communal infrastructure like mosques and village roads.
However, a deeper analysis reveals a hidden fragility: the majority of remittance use tends to be consumptive. This is not merely a choice but a reflection of the lack of promising productive investment opportunities in the villages. People rationally choose to spend money on things that provide immediate and visible benefits (homes, social status) rather than investing it in the agricultural sector, which has high risks and unstable market prices.
