Robert Go, Jakarta – Mini-marts selling everything from cold drinks and milk to bread and snacks in colourful packages are changing the way Indonesian consumers shop for their daily needs.

A government watchdog, however, last week banned Indomaret, the country's leading mini-mart chain, from expanding into new locations in Jakarta. The worry expressed by the two-year-old anti-monopoly commission KPPU was that mini-marts could spell the end of traditional provision shops, from which many low-to-medium-income families made their living.

Indeed, Indomaret stores and other mini-marts are a drastic departure from, and have distinct advantages over, the old-style shops, or warungs.

Sharing some similarities with the Econ mini-marts that appeared in Singapore housing estates in the early 80s, Indonesia's mini-marts are clean and air-conditioned with staple items such as sugar, laundry detergent, cooking oil and eggs displayed on well-organised shelves.

Warungs, on the other hand, are often cluttered, wooden shacks or dimly lit, less-than-sanitary units offering, among others, un-refrigerated drinks and eggs. One shopper, Ms Sulasmi, said: "Mini-marts are nice and stock more products. I still go to the warung when I need a quick item or two, but otherwise, I go to mini-marts."

Prices at mini-marts, according to her and other shoppers, are competitive and can be lower than at family-run warungs. Dr Raden Pardede, head of Danareksa Research Institute, said: "Mini-marts have clear advantages compared to traditional shops, but the KPPU decision is understandable if the interest is to preserve or help traditional warungs."

He said old-style shops were still the backbone of the small-scale economy and were crucial sources of income for many families. "If warungs go out of business, it could impact severely the unemployment figures and reduce further the poor's capacity to deal with the crisis," he said.

However, critics of the ruling said it missed the mark when it described Indomaret mini-marts as monopolistic and predatory. Mr Kustarjono Prodjolalito of retailer group Aprindo said: "We need instead to educate traditional retailers on new business methods and make them more competitive.

"If older shops are losing to mini-marts, it is because they lost in presentation and technology, not because of unfair practices. That's why the KPPU ruling is puzzling." Previous studies support the co-existence of mini-marts and small retailers.

Mr Edy Priyono of The Asia Foundation recently wrote: "It is not the case that small businesses are completely unable to compete with large retailers. "If small businesses are pushed out, the question is whether they are pushed out by unfair practices or by other factors."