Jakarta, Jan 30 (Antara) - The expansion of modern retailers in the
country should not sacrifice, sideline, or even displace traditional
markets, which constitute the economic centers of the middle and lower
classes.
However, traditional markets, which used to number up to 13,000 across
the country, should be renovated and revitalized, so that they can
compete, and develop side-by-side, with modern markets.
In its efforts to improve the competitiveness of traditional markets,
the government has conducted a traditional market revitalization program
over the last few years. Between 2011 and 2013, the Ministry of Trade
has revitalized 461 traditional markets, 53 of these being pilot
projects.
"The funds for the renovation of the traditional markets were taken
from the Trade Ministry's Task Assistance Funds, and amounted to Rp1.9
trillion," Trade Minister Gita Wirjawan said, as he prepared to
inaugurate Leuwipanjang Market in Purwakarta District on Wednesday.
Thirteen
of the traditional markets renovated were located in West Java and
received funds of Rp75 billion. The Ministry of Trade is committed to
continue improving traditional markets in various parts of the country,
Gita added.
The program is intended to improve the image of traditional markets,
which are often seen as dirty and disorganized. As they are revitalized,
traditional markets in the country are expected to become cleaner,
neater, and more in keeping with the atmosphere of modern markets.
"Overall, the turn-out at traditional markets increased by an average
of 57 per cent after they were renovated," the minister added.
Furthermore, in order to enable traditional markets to compete with
modern retailers, the Trade Ministry has restricted the establishment of
modern mini markets over the last year.
"The number of
mini-markets in a district or city should not exceed 150. A mini-market
which wants to open in a district that already has 150 units should
partner with the local entrepreneurs," Gita said.
According to the minister, the traditional market revitalization
program is aimed at boosting and accelerating economic growth in the
region. This will reinforce the trade sector and increase the
competitiveness within the domestic market.
As more traditional
markets become revitalized, more transactions will take place between
sellers and buyers, and that will automatically stabilize prices, Gita
said.
Traditional markets play an important role in society too, so they
should not be displaced by the expansion of modern markets, said
Regional Representatives Council (DPD) Chairman, Irman Gusman.
"When developing modern markets, we should also help develop
traditional markets with modern facilities," Irman said, as he launched a
national campaign to promote shopping in traditional markets on
Thursday.
The campaign was organized by the Indonesian Traders Association
(Ikappi) at the Graha Wisata, Solo, Central Java. The launch event was
attended by about 1,000 traditional market vendors from the Surakarta
Regency and its vicinity.
Traditional markets have a unique role in the development of friendship
and hospitality in society. The way market transactions are conducted
by bargaining shows the dynamic communication and positive relationships
that develop between sellers and buyers, Irman said.
"This shows the friendship and hospitality intrinsic to the culture of the Indonesian people," he said.
Whether people are aware of the fact or not, it is true that many
foreign retailers have sidelined traditional markets in recent years, he
said. However, modern foreign markets stamp official prices on their
goods, so that buyers and sellers cannot develop communications in the
traditional way.
At the launch, Irman also promised to help traditional market vendors
maintain their existence. He announced that, to promote the shopping in
traditional market campaign, he would call on the people to shop in
traditional markets whenever they can.
Foreign retail markets should operate on restricted timetables, he also
proposed, in order to provide more opportunities for buyers to shop in
traditional markets.
General Chairman of Ikappi, Abdullah Mansuri, said the conditions in
modern markets, with their clean, cool and convenient facilities, proved
very attractive to shoppers. On the other hand, the impression that
traditional markets are dirty and muddy tends to keep people away.
"We should change this negative perception of traditional markets by
developing clean ones with modern facilities," Abdullah said.
The evidence shows that the presence of foreign modern markets in
Indonesia has sidelined traditional markets. In 2007, there were about
13,000 traditional markets across the country; now that number has
dropped to just 9,000.
At the campaign launch, Abdullah also asked traders in traditional
markets to help change the negative perceptions of their trade by using
clean markets, so that the people would bring their business back to
traditional markets.
Meanwhile, the Indonesian Chamber of Commerce and Industry (Kadin) has
called on the government to promote traditional markets in the border
area between Indonesia and Timor Leste.
"We need a government policy on a free-trade zone to cover traditional
and modern markets in Belu District, East Nusa Tenggara (NTT), which
shares a border with Timor Leste," Chairman of Kadin's NTT chapter,
Abraham Paul Lyanto, said in Jakarta on Thursday.
He
argued that the introduction of a free-trade zone in the border area
would encourage local people to build creativity, develop the economy
and improve prosperity.
Abraham, who is also a member of the Regional Representative Council
(DPD) for NTT, said that to facilitate business and encourage
traditional and modern market traders in the border areas, the
government should issue a number of polices, including free trade zones.
With such polices, traders would have a reason to return to traditional
markets that have been developed in the border areas.
"We are concerned to see the conditions of traditional markets in these
areas," he said. "They are already built, but no trade activities are
conducted there for a number of reasons, including taxes, which
disadvantage small traders."
A free-trade zone to cover
traditional markets could be similar in practice to zones that had been
introduced in other border areas of Indonesia. "So, there is no reason
for the rejection of a free-trade zone in Belu District," Abraham said.
If there was such a policy, he added, encouraging small- and
medium-sized industries to do business with traditional markets in the
border areas could also help revitalize them.
Abraham pointed out that the Kadin chapter for East Nusa Tenggara had
established trilateral cooperation in the trade sector between the
governments of Indonesia, Australia and Timor Leste, or
Kupang-Darwin-Dili (Kudadil).
This trilateral cooperation was intended to reinvigorate trade and
investment activities, and to improve the welfare of people in the
border areas of the three countries.
"I have communicated with the chairman of Timor Leste's trade and
industry's chamber, and we have already received a positive answer. We
will open a Kudadil cooperation," Abraham said.
If
a free-trade zone was to be introduced in the border areas, the flow of
goods from and to East Nusa Tenggara would boost the economic
development of the local communities and, consequently, improve their
welfare, he said.
"We have the strategic Atapupu seaport in the border area between
Indonesia and Timor Leste, which could serve as gateway for the flow of
trade," Abraham added.***2***
(T.A014/INE/H-YH)
(EDITED BY INE)
(T.A014/A/BESSR/A/Yosep) 30-01-2014 1 |
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