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

Author: 
Daniel Suryadarma
Adri Poesoro
Sri Budiyati
Akhmadi
Meuthia Rosfadhila
Description: 
ISBN 978-979-3872-45-2
JEL codes: 
Organisation: 
Abstract: 
This study measures the impact of supermarkets on traditional markets in urban centers in Indonesia quantitatively using difference-in-difference and econometric methods as well as qualitatively using in-depth interviews. The quantitative methods find no statistically significant impact on earnings and profit but a statistically significant impact of supermarkets on the number of employees in traditional markets. The qualitative findings suggest that the decline in traditional markets is mostly caused by internal problems from which supermarkets benefit. Therefore, ensuring the sustainability of traditional markets would require an overhaul of the traditional market management system, enabling them to compete with and survive alongside supermarkets.