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Competition between traditional food traders and supermarkets in Indonesia

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  • Suryadarma, Daniel

Abstract

In Indonesia’s urban centres, supermarkets have multiplied recently. With cheaper higher-quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. This paper evaluates whether that is happening. It finds that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. The paper recommends policy to strengthen traditional traders and tackle the problem of street vendors.

Suggested Citation

  • Suryadarma, Daniel, 2011. "Competition between traditional food traders and supermarkets in Indonesia," 2011: The Supermarket Revolution in Food: Good, Bad or Ugly for the World's Farmers, Consumers and Retailers?, 14-16 August 2011 125323, Crawford Fund.
    • Handle: RePEc:ags:cfcp11:125323
    DOI: 10.22004/ag.econ.125323
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    References listed on IDEAS

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    1. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
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    Cited by:

    1. Chang, Han-Hsin & Di Caprio, Alisa & Sahara, Sahara, 2015. "Global Agrifood Value Chains and Local Poverty Reduction: What Happens to Those Who Don’t Plug In?," ADB Economics Working Paper Series 453, Asian Development Bank.
    2. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 7(10), pages 1-17, October.
    3. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, LAR Center Press, vol. 7(10), pages 1-17, October.

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