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Regional administrations key actor in retail war supervision
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Retail venue: Vegetable vendors wait for buyers at Kadelang traditional market in Alor, East Nusa Tenggara. (Antara Photo/Zabur Karuru)
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n response to mounting public questions, the Business Competition Supervisory Commission (KPPU) has reiterated that the monitoring of business competition between modern retailers and traditional markets in regions was outside its purview and instead was the domain of local administrations.
KPPU member Saidah Sakwan said that according to the Presidential Regulation No. 112/2007 on the arrangement and supervision of traditional markets and modern retailers, the right to regulate the zoning of traditional markets and modern retailers was exclusively given to regional administrations under the regional autonomy principle.
“A number of regional administrations asked us how the KPPU monitors competition between traditional and modern retailers. We, however, told them that it was local officials who actually have the authority to do so through zoning [creation]," Saidah said on Tuesday in Makassar as quoted by Antara.
(Read also: Indonesian retailers eye 10 percent growth in sales this year)
The emergence of modern retailers has been blamed as the main factor behind the declining popularity of traditional markets, in which small traders find it hard to survive the price competition.
Saidah, however, said that some regional administrations, such as the one in Blitar, East Java, had created zoning that was supportive of local traders.
