Sekretariat E-FEST 2020

Ruang EECC FEB UNDIP

Gedung PKM FEB Jalan Prof. Sudarto, S.H. Tembalang,
Semarang, 50275
Email :efest.febundip@gmail.com

VIRTUAL TRADITIONAL MARKET AS AN EFFORT TO PROTECT

THE EXISTENCE OF TRADITIONAL MARKETS IN THE COVID-19
PANDEMIC

Traditional Market Dynamics in Pandemic Period

Not a few poor people whose lives depend on traditional markets. Trading on
traditional market has become an alternative to employment amid the high
unemployment in Indonesia (Masitoh, 2013). Traditional markets play an important
role for people in meeting daily needs such as food. The provision of food stuffs in
this market is very dominated by local typical products produced by local farmers.
This indicates that the traditional market is the main place for domestic farmers to
distribute their agricultural products to the wider community. Local wisdom can
also be found in traditional markets, i.e. social interaction between buyers and
sellers in bargains where the price set by this market is not a pegged price, but is
subject to change according to the agreement of the trader and buyer. In addition,
the existence of traditional markets is a leading option for people, especially in rural
areas. Their trust in this market makes the store or some merchants a subscription
for shoppers.

The emergence of the Covid-19 pandemic forced the government to enact policies
to reduce the transmission of viruses such as Large-Scale Restrictions (PSBB),
Work From Home (WFH), and Stay at home. One of the causes is that many traders
in tradition market are infected with Covid-19. Based on the data fromIndonesian
Traditional Market Traders Association (IKAPPI) on June 16, 2020, a total of 573
traders were infected with Covid-19. These conditions resulted in traditional
markets being unable to operate as usual due to the odd even policy for traders as
well as the total prohibition of trading activities. The significant impact is felt by
some actors, namely local farmers who produce agricultural produce in the market,
traders whose income depends on selling where the Ministry of Commerce states
 Sekretariat E-FEST 2020
Ruang EECC FEB UNDIP
Gedung PKM FEB Jalan Prof. Sudarto, S.H. Tembalang,
Semarang, 50275
Email :efest.febundip@gmail.com

that during the pandemic traders experienced a decrease in turnover by up to 40

percent, and people as consumers who had to make ends meet, but still relied on
traditional markets.

People's alternative in addressing pandemic situations is by utilizing technology in

the digital economy such as online shopping applications. However, data from the
Ministry of Cooperatives and Small and Medium Enterprises (KMENKOP MSME)
states that only 13% of Small and Medium Enterprises (MSMEs) in Indonesia are
connected in digital access. That means there are still many MSMEs who have not
taken advantage of online shopping platforms.What's more, the alternatives
available are not exclusive where a Nielsen survey shows 58% of Indonesians
choosetraditional market as an option to buy fresh groceries despite being a location
that is prone to corona spread. It indicates that people's tendency to consume goods
has become a habit that is done continuously and difficult to be changed and the
utilization of digital transactions is not maximal.

Based on the above exposure, we can conclude that traditional markets are still the
main choice in meeting the primary needs of the community. It cannot be said that
the characteristics of bargaining, product variations, and crowds of traditional
markets are the reason for people's preference even though a pandemic is underway.
The existence of traditional markets cannot be eliminated, but preventing the
transmission of covid-19 should still be carried out. Therefore, an application that
can access traditional markets in virtual form is urgently needed.

Virtual Traditional Market Implementation

Traditional Virtual Market is shown to solve problems related to traditional markets

that have become clusters of covid-19 spread. This app provides basic needs
shopping features such as vegetables accessed via smartphone, delivery messages
through drivers registered in the app, bargaining features, payments made with cash
and electronics both through the use of commercial banks and digital wallets, as
well as communication between sellers and buyers via automated short messages.
 Sekretariat E-FEST 2020
Ruang EECC FEB UNDIP
Gedung PKM FEB Jalan Prof. Sudarto, S.H. Tembalang,
Semarang, 50275
Email :efest.febundip@gmail.com

The difference between this app and other online shopping apps is that it is devoted
to certain traditional markets in each area that is already available in the app. For
example, traders at Bambu Kuning market in Bandarlampung City of Lampung
Province must register their store in this app by adding photos of kiosks,
descriptions, and products sold. In addition, sellers can also use the feature of
accepting purchases, approving or rejecting orders, sending orders, receiving e-
payments, and feedback from buyers.

Consumers get their groceries when they've selected an item and there's a deal with
the merchant where the distribution of orders is done on the same day through the
driver. The app provides market preferences with the nearest location to the house.
This application cooperates with financial technology to digitize payments. Like the
market, this app is able to be used by manufacturers, consumers, and distributors.
The existence of traditional markets is very profitable for the economy. Local
farmers distribute their crops to traditional mains markets in small numbers. If this
app becomes a solution to reach many consumers, then demand will go up. Thus,
manufacturers will try to increase their production numbers.

This app is also useful for local traders where they can still operates in the middle
of a pandemic because people can easily buy trades. The government will also be
assisted to revive the economy because of the circulation of money in the
community. Supply and demand will again grow in the industrial economy during
this pandemic. This application has a short-term impact as a prevention of the spread
of covid-19 and also long-term, namely the efficiency of trading transactions in
traditional markets.

Picture 1. Virtual Traditional Market implementation overview

 Sekretariat E-FEST 2020
Ruang EECC FEB UNDIP
Gedung PKM FEB Jalan Prof. Sudarto, S.H. Tembalang,
Semarang, 50275
Email :efest.febundip@gmail.com

Application Sellers regist Buyers regist Drivers get Drivers Take

of Virtual their account their order and do and deliver
and set-up account, the the order
Traditional
make order transaction then recieve
Market the
store the

Closing

Virtual Traditional Market is an effort to support market digitization such as digital

payments. However, there is an exclusivity in this application, namely the essence
of traditional markets contained in one application. People can carry out buying and
selling activities that are usually carried out in traditional markets with merchandise
that is traded in traditional markets such as vegetables, basic food needs, side dishes,
grocery items, and others.

However, considering that the traditional market has become a covid-19 cluster and
many people are still not aware of health protocols and also of Covid-19 itself which
can spread through the medium of money, this application is a solution to meet the
needs of the community in the midst of a pandemic and also a solution for industrial
entrepreneurs.It also make the technopreneurs compete on making an interesting
design of the application so people get interested and accesable. Traders will also
tend to learn about technology since they have a lot of efficiency through the
existence of this application.

References

BBC.com. “Covid-19 Indonesia dan klaster pasar tradisional: Antara keselamatan

dan tuntutan perut, ‘kalau nggak jualan, mau makan apa’ kata pedagang.”
Accessed on October 15,
2020.https://www.bbc.com/indonesia/indonesia53094297
 Sekretariat E-FEST 2020
Ruang EECC FEB UNDIP
Gedung PKM FEB Jalan Prof. Sudarto, S.H. Tembalang,
Semarang, 50275
Email :efest.febundip@gmail.com

CNBC Indonesia.com. “Baru 13% UMKM di RI yang Melek Digital.” Accessed on

October 17, 2020.
https://www.cnbcindonesia.com/news/20200629190231-4-168897/baru-
13umkm-di-ri-yang-melek-digital

Ekonomi.bisnis.com. “Omset Pedagang Pasar Tradisional Anjlok 40 Persen saat

Pandemi Covid-19.” Accessed on October 17, 2020
https://www.google.com/amp/s/m.bisnis.com/amp/read/20200729/12/12726
78/omset-pedagang-pasar-tradisional-anjlok-40-persen-saat-pandemi-
covid19

Katadata.co.id. “Nielsen: Mayoritas Masyarakat Masih Pilih Belanja di Pasar

Tradisional.” Accessed on October 15,2020.
https://katadata.co.id/agustiyanti/berita/5f1918c817e04/nielsen-
mayoritasmasyarakat-masih-pilih-belanja-di-pasar-tradisional

Sahban, Hernita and Iwan Perwira. 2018. Empowerment of Traders and Traditional
Market Potential Development in Indonesia. International Journal of
Innovative Science and Research Technology, Vol. 3, Issue 1.