Impact of Supermarket on Traditional Markets and Retailers in Indonesia's Urban Centers

Policy brief SMERU Research Institute • December 2007 Indonesia


Since the deregulation of the retail industry in 1998, the number of supermarkets, hypermarkets, and minimarkets (collectively coined “modern markets”) in Indonesia has skyrocketed. Several groups claim that the resulting intense competition with modern markets has caused the decline of the traditional market. In 2006, SMERU conducted a study on the impact of supermarkets on traditional markets in Indonesia's urban centers. The study was conducted in Depok and Bandung, and used a combination of qualitative and quantitative methods. Traditional traders in seven traditional markets (five treatment and two control markets) were interviewed using a questionnaire, and in-depth interviews were conducted with traditional market managers, supermarket officials, officials from relevant local government agencies, and representatives from the Traditional Traders' Association (APPSI) and the Modern Retailers' Association (Aprindo).




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