With a booming economy, large domestic market, and steady rise in GDP, Indonesia's retail market is becoming quite lucrative. More businessmen are now banking on the country's huge potential, as Andy Saputra reports from Jakarta.

It is a mark of every modern city.

And in Indonesia, mini-marts have mushroomed all over the country. These small shop houses sell soaps, milk, cooking oil, and other household staples, and are conveniently located in residential areas and main roads. With its fast service, clean shops, and competitive price, it is winning the consumers' heart.

Housewife Sakiroh said, "It's closer. I have more choices. It's more efficient. I buy all my household needs here now."

And it pays.

The estimated 300 million dollar a year industry is growing at an astonishing rate,

Recent survey by Nielsen indicated 42 % growth in 2010 alone.

Tutum Rahanta, Chairman of Indonesian Retail Association, said, "Mini-marts are the fastest growing retail sector in Indonesia. They cater to changes in how people shop in modern Indonesian society."

Indonesia's steady economic growth, and its large domestic market, means that Indonesia's majority middle class can now afford to make cleaner, and more convenient, choices.

And with low starting up cost, some as low as 30,000 USD, and an average of 3 years breaking-even point, the mini-marts have the perfect conditions to bloom.

Andy Saputra, Jakarta, said, "While many enjoyed the mini-mart boom here in Indonesia, there's a big outcry that traditional markets like these are going out of business."

This has prompted the government to regulate the opening hours and the proximity of mini-marts to traditional markets. But with little enforcement, the problem is still affecting the traditional sellers. Anas, who's been selling groceries in this market for 30 years, says that the mini-marts are taking his business away.

Other shop owners here are saying that they see up to 30 percent drop in sales, and are worried more customers will be lost. Traditional vendors and stall owners are complaining that the government is not doing enough in protecting them.

But according to the Indonesian Retail Association, mini-marts and traditional markets can coexist. The challenge for the government, is to find the right balance, so both sides can enjoy Indonesia's retail potential.

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