Author Name : Devika Anggraeni Utami

Article Title : Traditional Markets

Background
The traditional market that became the main distribution channel of Indonesian people's
agricultural products, is currently at the end of the horn because it can not compete with the
modern market. Though not a few people who rely their lives to the traditional market. When hit
by the economic crisis, traditional markets are able to support the lives of most Indonesians.
Indonesian trading activities generally occur in traditional markets. Traditional market markets
are widely available in cities in Indonesia can even be said to still exist even though many
emerging modern markets. Therefore, the traditional market is able to become the driving force
of the economy from the trade sector. Economic progress in cities in Indonesia is inseparable
from the share of trade in traditional markets.
Economic actors in traditional markets, especially market traders, are the driving force
of the Indonesian economy from the informal sector because the Indonesian economy grows a lot
from that sector. Traders in conducting their trading activities have various considerations.
Consideration of the trader is also considered when the trader determines the choice of
consumption as well as determining the capital source used to meet the production factor. Source
of capital for traders is needed to support the smoothness in the provision of goods merchandise
In traditional markets there are many interactions not found in modern markets, where
traditional market traders do not buy a merchandise that they will sell in their stores in large
quantities from agents, this is because the limited capital they have is insufficient to buy goods in
large quantities and then they do not have the complete facilities to store too much merchandise
because the merchant does not have a refrigerator to refresh his wares as seen in the modern
market. Similarly, in the matter of purchasing goods by modern markets where goods are always
purchased in large quantities, in addition they have large capital also has a plan that has been
prepared first before the market was built with the University of North Sumatra other words have
been organized in such a way and processed by people who have a high science in their field so
that makes it easy in doing things. In contrast to traditional markets whose merchants do not
have thoroughly mature planning driven by educational factors that also keep them at a standard
point
Purpose Writer
1. Provides an overview of the effects of traditional markets and the Indonesian economy.
2. Provide solutions for traditional market development model
Contents
There are currently over 13,000 traditional markets in Indonesia. There gathered more than 12.6
million merchants every day. If every trader has four family members, then there are about 50
million people related to traditional markets. That does not include suppliers and consumers who
transact in the traditional market. Generally, traditional markets are visited by middle to lower
class consumers. Unlike supermarkets, most traditional markets belong to the local government.
Local governments in Indonesia generally have a Market Office that handles and manages
traditional markets. This agency manages its own market or cooperates with the private sector.
It is customary for the Marketplace to set annual revenue targets for each market
manager, which typically increases each year. Failure to meet targets generally affects the
turnover of market managers. It is not surprising, therefore, to find many more market leaders
paying more attention to the task of meeting retribution collection targets than good market
management efforts.
Improvement of traditional markets needs to be done, as has been done by the
Government of Thailand. Healthy markets have been launched by the Minister of Public Health
of Thailand in cooperation with the private sector since 2002. With the aim of granting authority
to the private sector in this case the development agency of Bangkok metropolitan city to
gradually build thousands of traditional markets into a healthy market. The goal is to improve
market quality in accordance with health legislation. Based on the standards of the Thai Ministry
of Health, the healthy market has three indicator groups: healthy environment, safe food and
consumer protection. And in 2004, 75% of the market in Bangkok City has qualified as a healthy
market (1,138 out of 1,505 markets).
Traditional markets still have advantages over the modern market. That is the
psychological satisfaction that traditional market consumers get through the process of
bargaining and discounts on loyal customers and a sense of kinship with mutual greeting. In
addition, there are also products typical of traditional markets that can not be served in modern
markets, such as typical snacks and agro products are still fresh directly from farmers.
 Traders of traditional markets, they generally have a small scale and face a long
marketing chain to buy goods to be sold. The low cost advantages of traditional traders are now
beginning to erode.
In the past, the advantages of traditional markets were also obtained from the location.
People would rather go to markets closer to home. However, modern shopping centers continue
to thrive on potential locations. With the increasingly widespread and spread of the location of
modern shopping centers, the benefits of location will also be increasingly lost. The proximity of
the current location can no longer be a source of continuing excellence
A well-run traditional market can also have a fascination as a tourist destination, as it
has its unique natural and cultural elements and unique characteristics. This tourist attraction can
also be obtained from food and souvenirs typical of the region. Some of the traditional markets
that successfully exist by exploiting the tourist attraction include Market Kuin (floating market)
in Banjarmasin, Klewer Market in Solo, and Sukawat Market in Bali
The ultimate goal of developing this traditional market development model is expected to
strengthen traditional markets to survive in competition with modern markets. With a cheaper
price image of goods, quality products that are not less, professional management and
psychological approaches, traditional markets will have a bargaining position that is balanced
with the modern market in the eyes of the community as well as enlarge its potential as the
driving wheel of the Indonesian economy
Conclusion
To maintain the existence and increase the potential of the traditional market as a driver of
the economy of the small people, a traditional market development model is needed, in which the
government acts as a regulator of the allocation of stakeholders and regulators. Regulations on
traditional markets and modern markets should regulate the distribution of business zones,
opening hours, prices of goods, and types of retailers. Strategies that can be used to regulate the
price of goods is to make differentiation of products and prices, as well as through regulations of
taxation and efficient retribution management. Besides, it is also necessary human resources
managers of traditional markets that management modern but still maintaining the typical taste
of traditional markets.
Traditional market is an important means to support the regional economy. But today
traditional markets are beginning to diminish their existence in the community. this can be
caused by poor market facilities and the increasingly widespread development of modern
markets. Most of the traditional market in Indonesia is in a slum, semraut and not infrequently
found many street vendors who sell to the street. To solve this problem market revitalization is a
necessary thing to do. Revitalization of action is only done on the physical environment but also
its economic and social upgrading is also important. With the revitalization of traditional markets
will be more developed. But the rampant development of modern market revitalization is not
enough. Modern market of course will also improve the quality of its service. For that traditional
market needs to have a characteristic so more interesting. Creative touch can make the traditional
market more highlighted the visitors like santa market. In addition, by promoting local traditions
and culture can also make the market still exist. For example, the market in North Sumatra with a
traditional batak-shaped building and market in Yogyakarta with traders customs using
traditional clothing Java on every Thursday pahing. This will make more value for traditional
markets. To develop a market like this the role of society and merchant is indispensable. Without
the cohesiveness and cooperation in realizing this creative market will not be realized.
Reference list
Napitupulu, Albert. The Future of Traditional Markets.
Presidential Regulation No. RI. 112 Year 2007 About Structuring and Development of
Traditional Markets, Shopping Centers, and Modern Stores
Suryadarma, Daniel, and friends. 2007. Supermarket Impact Research Report on Traditional
Retail Market and Traders
Indrawati, Toti and Indri Yovita. 2014. Analysis of Traditional Market Sources Traditional
Market Traders in Pekanbaru City. Journal of Economics, Vol. 22, (No.1): 1-8.