Traditional Markets

Aug 29th, 2007, in Business & Economy, by

Attempting to save traditional markets and promote Indonesian products.

President Susilo Bambang Yudhoyono asked regional administrations to make physical allocation for both modern and traditional markets in order to ensure the latter’s survival. He said to a plenary session of the Regional Representatives Council (DPD) at the parliament building on August 23rd, in discussing its policies on regional development:

Governors, district heads and mayors should determine proper locations for modern and traditional markets.

The statement was made in response to DPD Chairman Ginandjar Kartasasmita’s complaint about the rapid disappearance of traditional markets:

We discovered the phenomenon (of disappearing traditional markets) when we visited some places.

Ginandjar said the demise of traditional markets could affect the people’s economic autonomy as traditional markets played an important role in the eradication of poverty and unemployment.

Yudhoyono intoned agreement with Ginandjar, and said the government should support development of domestic industries by continually promoting Indonesian-made products, perhaps like jamu, and by promoting a “Buy Indonesian” sort of policy.

It would be good if we stage wider campaigns to use national products.

The President said this was dependent on state owned firms and private businessmen maintaining the quality of their products and offering them at reasonable prices.

Yudhoyono and First Lady Ani Yudhoyono, Vice President Jusuf Kalla and Mrs Mufidah Kalla as well as cabinet ministers, DPD members and other invitees at the DPD plenary session all wore traditional batik clothing, as part of the message. antara


8 Comments on “Traditional Markets”

  1. avatar Janma says:

    Last night we watched another traditional market burn down on the news. my husband said that most of those fires are set on purpose so that developers can scam the land for malls and other projects.
    do you think that is true?

  2. avatar Dimp says:

    Hi Janma,

    Anything can happen in Indonesia.

    But back to the topic, it is probably back to supply and demand, when both exist for traditional market then these markets will never disappear. Problem is most people are not keen to shop at traditional market (no demand), and there are less and less people who are willing to sell their products at traditional market (no supply). And these are all because of “GENGSI”.

  3. avatar Sputjam says:

    Foreign hypaermarket operators have made inroads in Indonesia and the rest of south east asia by offering the lowest price available.
    Locals like GIANT (Malaysia) and HERO (Indonesia) supermart have been bought over by Jardine Matheson of London (taipan fame).
    Tesco (UK) dominate in thailand, Jusco, carrefoure, giant and Tesco ar slugging it out in Malaysia and Hero has plans for 50 supermarkets in Indonesia by 2010.

    Whenever these guys open up a supermarket or hypermarket, the local markets/small groceries/ mom and pop stores suffer.

    There is no point fighting the big guys. They do not own the stores, merely renting it on long term lease. Therefore if business is lousy, they will merely walk out.

    There may be some truths that developers could have been involved in burning local markets in order to develop the malls. Some of these supermarket operators actually pay several years rent in advance just so that it may not be offered to rival operators, especially for sought after sites in Jakarta.

    What the government can do is to force the supermarket operators to offer some areas in the supermarkets where small time local traders, which used to ply the local markets, do their business. This should be considered as a civic duty to the country where they ply their trade.

  4. avatar Dimp says:

    Hi Sputjam,

    I agree that giant chains of super/hypermarket are driving the traditional market to the ground. But one advantage of traditional market is that they can still operate on any location, not requiring huge area like those hypermarkets, there is no need of huge parking lot, no need for huge displays of unlimited supply of products.

    So I think traditional markets should be able to survive, they don’t need to go head to head against those giants, but there is a way for them to live side by side.

  5. avatar Falcon says:

    The problem with the traditional market stem from the old facility and the vendors who are simply dirty. Do you really want to shop where it smells foul and garbage strewn all over. Traditional markets in Europe are frequented by the people. The offerings are fresh and clean but still have the traditional look.

    The mind set of the local government and the vendors must be changed, Certainly dirty markets are still acceptable by some individuals but even the ones with lesser income still enjoy the super/hypermarket chain, despite some of the items can be more expensive.

    The traditional market will and continue to exist however it will slowly be eliminated in some areas as the middle class urban society starts moving in.

    There are still some pockets in the developed urban areas and in the metro cities where the traditional market will continue to exist but upgrading facility and immaculate traditional markets are mandatory to survive which is hardly acceptable by the nonconformist traditional vendors.

  6. avatar Abd al Halim Orr says:

    Indonesia is a Muslim country, and it has to be understood on the bottom line that supermarkets are part of the usury economy and demonstrate the absolute imperative of interest based economies which is that the big have to get bigger and have to destroy any fine grained traditional economy. It can be said directly that supermarkets are haram, because the Prophet peace be upon him, and the rightly guided Caliphs after him forbade any permanent occupation of the market, and would destroy any pemanent structures in the market place. Are such things conveniently forgotten by our ulema? Supermarkets are a long way down the line of the destruction of the fitri natural economy of just and balanced exchange and are merely monopolistic distribution. Finally I would warn that anyone wanting to cover up these truths by ‘moderating’ these comments will be answerable for it on the day of reckoning.

  7. avatar Aluang Anak Bayang says:

    Assalamualaikum Abd al Halim Orr, may Allah swt be upon you and your family.

    I see that you are one of the more intelligent poster here. What is your heritage and which country you come from?

    Wasalam.

  8. avatar Lairedion says:

    Finally I would warn that anyone wanting to cover up these truths by ‘moderating’ these comments will be answerable for it on the day of reckoning.

    Agree, only Allah SWT is allowed to moderate comments…

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