The development of modern retail business in Indonesia, increased rapidly in recent years. Some foreign retail players names are familiar, and usually visited by people of Indonesia. Its sales transactions increasing from year to year. According to data APRINDO (Indonsia Retail Employers Association) total sales USD 45 trillion in 2005 and increased 50 trillion in 2006 a big number contributing to the national economy moving. Number 4861 minimarket outlet stores, 515 supermarkets and hypermarkets around 80 more ("Kompas" May 3, 2007). In 2009,details outlet; Carrefour's 60 outlets, 50 outlets Hypermart, Giant 34 Outlet, and combined with other hypermarket retailers.
And this number is likely to increase again in next years. Changes in lifestyle and consitant economic growth of our nation become an important factor in the development of modern markets in Indonsia. According to data research AC Nilesen middle and upper classes even reach about 25 million people from a total of 220 million people of Indonesia. Modern market participants must target the market opportunities. If before the housewives shopping for daily needs is a traditional market, now transformed into a modern market. This we can see directly the modern shopping center is always crowded visited by the buyers, especially on weekends.
On the other hand the number of its traditional markets every year decline. According to data APPSI (Market Traders Association of All Indonesian) minus 10% per year since the 1990s. ("Kompas" May 21, 2007) To mediate the hegemony of modern markets, the majority owners are foreign investors, with traditional markets, the government through the Ministry of Trade was to review and formulate a presidential regulation (PP) that regulate modern markets operational. The regulation has long been discussed by the government with various parties concerned, especially the association of traditional markets would be harmed by the presence of modern markets.
The interesting thing is being discussed is the location of modern markets and population may be served by a modern market and permit the opening of new stores should involve traditional market associations proposed in the legislation. Enable them to overcome permasalan regulations are there? Laws governing business competition in Indonesia is already there and complete enough to manage a modern market competition and the traditional 5-year Act 1999. Article 7 of the Act prohibited business name to set the price below the market price, which may result in unfair business competition. However, we often look and see for yourself how the price war among modern retailers clearly cost far below market prices. This can happen because modern retailers charge the price difference to the supplier with a promotion fee or purchase discount, allowance or damage terms of trade agreements (trading term) options, which can actually cover the difference between purchase price and minus the selling price. If this treatment is done to a multinational supplier, Unilever, P & G, Nestle, may not affect big enough, because they think it is part of the cost of company promotion. But if the medium suppliers (suppliers of vegetables, fruits, fish, and tempeh know) this would be very burdensome at all. And it is common knowledge, to be listing on the master file of modern retailers merchandising listing fee will be wearing a pretty expensive enough. Precisely the opposite condition occurs in the traditional retailers. They will only benefit if the price difference with a big price.
But Now, it is difficult and impossible to achieve. Items they no longer obtain from the supplier or major distributors. So the price is quite expensive. There is no promotion fee, listing fee or damage allowance they get. Cash flow from modern retailers can be arranged in such a way, because its term of payment ranging from 15 days to 1 month. Even in fact be up to 2 months. This means that if you turn over its inventory under the average 15 days, practically the retailer was not issued a dime of cash. Because the goods are sold, may be temporary cash payments to the supplier's outstanding.
Traditional retailers contrary they must pay first items they would sell only when it can do more shopping merchandise. In general, the traditional market conditions present (such as large cities diJakarta) is not well managed. Although these markets markets are governed by local governments, but lack the infrastructure and facilities are not even comfortable to shop. Dreadful odor of garbage - garbage that is not immediately transported and where the muddy and dingy especially coming rain. Obviously this condition is less attractive to buyers who had come especially from middle and upper economic circles. Taking into account the above facts, whether the government should have to suppress the growth of modern markets (by establishing strict rules and hit the modern retailers) and to promote more pro-traditional markets, the perpetrators are mostly SMEs and Cooperatives and small people.
Surely the government should not just do it without looking at the facts positive side of the modern market. Taxes incurred and paid by the retailer must have a very large modern. If the total sales is 50 trillion PPNnya it is 10% ie 5 trillion. Not to mention their ad spending to do in various national newspapers and local, of course, the potential for very significant tax. If we assume a hypermarket has a staff of 200 people, the total for hypermarkets can absorb the labor of 16,000 people. If 10% of the total 30,000 SKUs existing hypermarkets are private label (product supplied by the domestic industry, SMEs and cooperatives, but using the brand of the retailer) will certainly be able to assist the SMEs and cooperatives to increase their business.
Modern retail investment market that often committed by foreign investors is very important especially the government effort to invite foreign investors to enter Indonesia. The system of legislation that is clear and no overlap between the central government regulations in the region is very urgent to be reviewed by the government. Because some local governments impose rules that are not uniform and not clear, and raises the costs of stealth or extortion because no clear rules. Is like, if regulations have established that modern markets can not be located near traditional markets, or should not be located near the main road that would interfere with traffic, then this rule must be run with consistent and clear to anyone.
Because in fact many sites now located near the modern market of traditional markets or located area of heavy traffic so that traffic congestion adds. Traditional markets must also be rejuvenated with adjusted means and supporting the existing facility, and provide guidance to them to increase their competitiveness and their skills. Especially honed their ability to see market opportunities. Because the modern market can not provide all the daily needs and all necessary household industry suppliers able to supply the modern market. Modern Market was designed to provide goods that it turn over quickly (considering it cost for space is very expensive so the goods sold were very selective and very considered contribution margin of each product category sold). By selling what can not be provided with modern market can help the modern market. All of the above departed again to pemeritah to be fair and prudent to protect and menyejahterahkan all the Indonesian people as mandated in our constitution. Uniformity of the laws of modern markets and decisiveness to enforce indiscriminately indispensable for retail actors do not hesitate to run their business.
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