Reinforcement of the Synergy Between Traditional and Modern Markets to Perform Community Based Economic Development

Key words: traditional markets, modern markets, synergy

By: Istijabatul Aliyah, Mulyanto, Agus P Saido

The aims of this research were to: 1) map the distribution of traditional and modern markets; 2) analyze the classification of traditional and modern markets; 3) study the scope of services provided by traditional and modern markets; 4) analyze the benefits obtained by traditional and modern markets stakeholders; and 5) formulize policy recommendation concerning synergy reinforcement between traditional and modern markets. Based on the objectives this research was targeted at producing output which includes: 1) effective technology; 2) research-based lecture handbook; 3) nationally-accredited journal article.

The research employed some analysis methods including 1) spatial analysis to map the distribution of traditional and modern markets in Surakarta; 2) category-based analysis (CBA) to classify traditional and modern markets; 3) geographic information system (GIS) analysis; and 4) interactive analysis by Miles and Huberman (2002).

Research results show that traditional markets in Surakarta are distributed proportionally even though the commodities and scope of services are different. Similarly, there is equal distribution of modern markets in Surakarta, although five modern markets of eighty-six traditional and modern markets are located on Slamet Riyadi Street. The scope of services of both traditional and modern markets in Surakarta are mostly local. Only few of them have national and international scope of services. Policy recommendation to strengthen the synergy of traditional and modern markets in Surakarta include: 1) changing the configuration of economic agents in traditional markets; 2) equalizing the cost of commodities distribution to traditional and modern markets; 3) providing law protection for the merchants in traditional markets; and 4) monitoring and evaluating local government regulations.