Tuesday, 15 September 2015


The Ministry of Trade was ready to run revitalization of 1.000 marketplaces by 2015 financed by APBN Stated Budget. The budget for revitalization was posted at Rp.2 trillion.

Minister of Trade Rachmat Gobel stated on Tuesday (16.6) that performance of pilot project marketplace revitalized by the Government had increased average turnover by 70% per year. The increase of turnover was based on evaluation by the Ministry of Trade on 32 pilot project marketplaces. As planned, the Ministry of Trade would revitalize up to 1,000 marketplaces this year.

He said that increase of turnover showed that the marketplace revitalization program was most beneficial to increase income of people’s market most of which were micro, small and medium business. Soon the marketplace would be the vehicle for smooth distribution of goods. He expected the revitalized market would be benefited and be well taken care of.

Rachmat explained that the revitalization of marketplaces was not only on the physical side but also the management aspect in terms of cleanliness, safety and convenience. Rachmat said that marketplace management would be the main issue in maintaining stability of essential needs. Betterment of marketplaces was to step up competitive edge of traditional marketplaces against modern markets which had been regarded as competitor t traditional markets.

Minister Rachmat remarked further that traditional markets could not compete against modern markets as the physical condition was not comfortable while the products on sale were below standard, so the public tend to choose to visit modern markets where the facilities were better and the ambience more pleasant. The Minister assured that the Government was constantly revitalizing traditional markets although not being able to fully meet public expectations.

Meanwhile the Director General of Domestic Trading Srie Agustina said that she planned to renew policis on marketplace revitalization by 2015 which was not only oriented to physical and management but also to involve the private sector. Srie said that the market revitalization program was only focused on management on the physical side and management including zonation and guidance to traders. By next year, marketplaces revitalization would be expanded to economic revitalization and social cultural. The objective was to make marketplaces as hub of distribution from upstream to downstream.

Data of the Ministry of Trade had it that in the past 4 years revitalization had been exercised on 560 people’s market, 52 of which were pilot projects; in the said program, most of the marketplaces posted increase of turnover by 213%. The fund needed to revitalize 1 market was Rp.2 to Rp.12 billion exclusive of public facilities based on per province approach. For 2015 the Ministry of Trade procured fund of Rp.997 billion to revitalize 469 marketplaces. Srie stated that by next year 335 marketplaces would be renovated using DAK special budget while another 37 marketplaces would be using Government’s fund.

To refer to the program of the Working Cabinet to revitalize 5,000 marketplaces in the next 5 years, surely that fund would not be enough to build 1,000 marketplaces per year. Moreover Srie said, the longer takes to revitalize a market, the higher would the cost be. Today alone there were 800 proposals still not answered. For the matter Government would set up access for the private sector to invest in the people’s market project. (SS)

Business News - June 19, 2015

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