Govt Revokes Market Management Regulation

The revised draft of Regional Governmental Regulation No.2/2002 regarding Private Marketing revokes the stipulation which requires minimarkets to maintain the 500 meter radius distance from local traditional markets. Ratnaningsih, Head of the Economic Affairs Bureau of the Jakarta Regional Government, said that the draft is in accordance with Presidential Decree No 112/2007 regarding the Management of Traditional Markets, Shopping Centers and Modern Stores as well as with Trade Ministerial Decree No. 53/2008 regarding the Management Guideline of Traditional Markets, Shopping Centers and Modern Stores.

Ngadiran, Head of the Indonesian Market Traders Association, said that the revocation will negatively affect the sustainability of traditional markets as well as the economic cycle of small and medium traders. It is also considered proof of the government of Jakarta's impartiality towards traditional markets.

“In fact, we have been required to contribute to the government's revenue through the security and cleanliness levy," he said.

Ngadiran said that as of May 2011 Jakarta has 51 units of traditional markets, comprised of 20 percent A-class markets, and 40 percent B and C-class. A-class with more than 700 traders distributes Rp 1 billion (US$ 117,000) levy each month. B-class markets with 300 to 700 traders distributes Rp 100 million to Rp 150 million a month, while C-class markets have less than 300 traders which supplies Rp 75 million to Rp 100 million per month.

Triwasaksana, Deputy Head of the Parliament of Jakarta, said that the Parliament will protect traditional market traders’ interests by weighing on the revised draft. “We will prioritize their welfare,” he said.

Contradiction
The government's plan to revoke the stipulation contradicts the incessant policy of controlling minimarkets in the capital city. The government of Jakarta is reevaluating the license of 1,400 minimarkets.
Fauzi Bowo, Governor of Jakarta, said that he will assesses if these outlets violate the Regional Governmental Regulation. “If they do, we will certainly close them down," he said. The government of Jakarta has also ordered the relocation of 16 minimarkets that are less than 500 meters from local traditional markets. As many as 10 outlets are situated in Central Jakarta, six in South Jakarta, 24 in West Jakarta, six in East Jakarta and seven in North Jakarta