Sat, 30 Nov 1996

Old markets threatened

JAKARTA (JP): Jakarta's traditional markets would not lose consumers if rules on the distance between traditional and modern markets were followed, an official said yesterday.

Lihardin Sipayung from the city-owned market company, PD Pasar Jaya, said many modern markets were too close to traditional markets.

He declined to give examples.

Lihardin was referring to statements by his director, Albert Napitupulu, in a recent discussion on traditional markets.

Albert said modern shopping centers threatened the existence of traditional markets.

Lihardin supported Albert's suggestion of setting up traditional markets near low-cost apartments.

Another measure would be to "anticipate competition" and enforce rules, he said.

The city rules traditional markets should be at least 500 meters from supermarkets or shopping centers in areas categorized as advanced.

In developing areas the distance must be a kilometer and 1,500 metres in the least advanced areas.

Lihardin would not blame any party but said the city's Economic Promotion Board and mayoralties were the supervising authorities.

Modern markets have grown rapidly since the 1970s.

A recent study by property consultant First Pacific Davies predicts city shopping areas would reach 1.1 million square meters by the end of the year.

Next year shopping space would increase 169,200 square meters and 243,000 square meters in 1998, the study predicted.

Napitupulu said the government had to pay more attention to small traditional market traders because of this.

Big traders had direct access to their producers so they could sell goods cheaply while small traders had to face long distributions chain before getting their goods, he said.

There are 150 traditional markets in Jakarta hosting about 80,000 traders.

Albert said one way to stop traditional markets becoming extinct was to help them adjust to the changing markets.

He said traders needed to improve their knowledge and access to information and investment. Their relationship with producers and retailers also needed improvement, Albert said.

"The municipality can become a mediator to connect the traders with the industry, so they can get goods for affordable prices," he said.

Lihardin said the market company must also improve traditional markets by cleaning them and making them more attractive.

"No one would come to a market swarmed with flies from the trash everywhere, when they can go to a nearby shopping plaza which sells items for a little more," Lihardin said. (02/anr)