DESIGNATION OF TRADITIONAL MARKET DEVELOPMENT POLICY ANALYSIS IN CIREBON REGENCY

• Main Author: DESA (NIM: 23407048), FIRMAN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18502
• Institution: Institut Teknologi Bandung

In Indonesia, traditional market is one of the sectors that has a strategic position in economic development, with a workforce absorption potential around 12.5 million traders spreading in 13 traditional markets. The removal of large scale retail and wholesale business trades from the negative list of foreign investment causes rapid modern market growth and produces negative impact on the existence of traditional market. On the other side, the existence of traditional market which is dirty, unhygienic merchandises, low awareness of traders for developing their business, and the less optimal operational time of marketplace are some of the factors for the removal of traditional market. The implementation of local autonomy opens opportunities for localities to manage and develop traditional market aimed at promoting community prosperity level in Cirebon Regency. In Cirebon Regency, there are 8 (eight) Pemda Markets and 22 Village Markets, together housing around 9228 traders.<p>The designation of traditional market development policy should be conducted because it is a mandate of the 1945 UUD (Constitution), Article 33, stating that national economy is based on people-oriented economic democracy. Thus, in order to successfully manage and develop traditional market in Cirebon Regency it needs to design suitable policy strategies by taking internal and external factors into account. The traditional market internals are analyzed by location, service, merchandising, prices, atmosphere, store employees, and promotional method factors. The external factors consist of distant sphere and industrial sphere. Analyzed on the distant sphere are politic, economic, social, and technological factors. The industrial sphere factors are analyzed by a competitive advantage model by Porter with one additional factor, that is, other stakeholder factor.<p> The traditional market development policy is formulated based on the strategy formulation stages by David with 3 (three) analyses, namely, input stage, matching stage, decision stage. Based on the results of strategy formulation, the following strategy formulations were obtained: 1) policy of facilities and infrastructures improvement; 2) protection and regulation; 3) cooperation with central government, private, and buyers; 4) market promotion and optimization; 5) HR and product quality improvement; and (6) improvement and optimization of the existing program. The implication of policy strategy on institution was analyzed by using the McKinsey's 7-S framework, consisting of strategy, structure, system, style, staff, skill, and shared value. <br /> <br />