[Kajian Post] Indonesian Traditional Markets are in Danger

Oleh ; Tifani P.S | Trainee Divisi Kajian Kanopi 2012 | Ilmu Ekonomi 2012

Traditional market is the place where a seller meets with a buyer. They are bargaining over the price of goods. However, in modern market the buyers do not really have a choice of the price of the goods. Usually, the buyers already set the price. Each year, the number of traditional markets exist is lessen.

Before, the number of traditional markets in Indonesia reached 13,000 . However, today the number of traditional markets is lessening. The number of traditional markets decreased by 8.1% each year while the number of modern markets increased by 31.4%. This would indicates that the traditional markets would ceased to exist within the next 12 years.


This would clearly impact UKMs. It is estimated that 12 million people working in UKM would be unemployed and 12 million suppliers would lose their orders due to the closing of UKMs. Any necessary action should be done to prevent the disappearance of traditional markets

The growth of modern markets lessen the customers of traditional markets that forced those who run businesses in traditional markets have to closed down. This is because the customers nowadays prefer to shop in a better condition. Traditional markets are often seen as dirty and have limited number of facilities. From 2010 survey, there are 95% from 4,000 traditional markets surveyed in 12 different provinces that are over 25 years old.

The intervention of government is needed for the future of traditional markets, as diminishing modern markets is not beneficial either. The modern markets can provide a lot of job opportunities and taxes. It can also satisfy the need of people.

The government has the power to allocate the stakeholders as well as making some regulations concerning both the modern markets and traditional markets. The regulations made could include operational hours, goods offered, and prices set.

It is estimated that an investment about Rp. 52 trillion to prevent traditional markets lessens each year. With the government budget of Rp. 500 billion for the market, there are some more help needed from nongovernment.