Traditional markets get a boost

Novia D. Rulistia , The Jakarta Post , Jakarta | Sat, 03/08/2008 12:11 PM

The government has allocated Rp 140 billion (US$15 million) for the construction and renovation of traditional markets throughout Indonesia this year, an official said.

Speaking to The Jakarta Post on Thursday, the Trade Ministry's director general for domestic trade, Ardiansyah Parman, said the budget, although limited, was expected to cover the renovation of market infrastructure, especially in the regions.

Ardiansyah said the budget, which was increased from Rp 100 billion in 2006, would be used to finance the construction of 32 traditional markets, 42 markets in remote and undeveloped regions, five markets in border regions as well as on the smallest and outer islands, 10 markets in regions that had been hit by disasters and nine supporting markets.

"Ideally, the budget needed for the development of traditional markets is Rp 15 trillion," he said, adding that it would take years to cover the development of 12,000 markets in 462 regencies throughout the nation.

The government has said that the survival of traditional markets is at risk as more people shop at modern markets.

In response, the government is also urging vendors at traditional markets to improve their services and market conditions, to maintain customers.

The government also issued a presidential regulation in 2007, which, among other things, restricts the expansion of modern retailers, including supermarkets, hypermarkets and convenience stores, in certain zones.

Last year, 20 traditional markets were built in provinces hit by disasters, including in Nanggroe Aceh Darussalam, Bengkulu, South Kalimantan and South Sulawesi.

In addition, seven traditional markets were built in border regions, such as Entikong in West Kalimantan, Skow in Jayapura and the Sangihe Talaud islands in North Sulawesi.

In remote regions, markets were built in the Mentawai islands, off the western coast of Sumatra, and Enggano off the southwest of Sumatra.

"For next year, we suggest that the budget for the development of traditional markets should be included in the special allocation funds (under the annual state budget) in order to speed up the development process," Ardiansyah said.

The role of local governments and the private sector in developing traditional markets also has to be stepped up, he said.