Preserving Traditional Market in Indonesia Based on the New Public Governance Perspective

Preserving Traditional Markets In Indonesia Based On The New Public Governance Perspective

The rapid advancement of information technology has resulted in complex changes in human behavior, increasing the competitiveness of the private sector and government in managing affairs (Zhang et al., 2012). All activities and transactions in the public sector must be swift, simple, effective, and efficient. Additionally, the use and provision of public access are currently accomplished through technology. In line with this, the theory of public administration has shifted its focus from order and legal compliance to efficiency, democracy, and participation, evolving into an approach that values co-production, collaboration, and networking, all of which are incorporated into the concept of new public governance (Wahyurudhanto, 2020).

Europe and America have seen a growing demand for a new form of public governance that places a higher premium on public participation (Bao et al., 2013; Carr, 2015). This approach aims to meet the needs of an increasingly complex society and the resulting increase in service demands. On the other hand, society is calling for a more effective, efficient, and accountable government that spends public funds prudently and promotes social innovation (Simonet, 2015; Torfing & Triantafillou, 2016). This argument is backed up by a collection of studies titled Social Procurement and New Public Governance, demonstrating that new public governance can help streamline government spending by involving multiple parties (Barraket et al., 2015). Governments, the private sector, and local communities benefit from improved budget execution. This has altered the discourse and practice of public accountability to account for the complexities inherent in collaboration among the government, private, and community sectors. Scientists concur that new public governance should be implemented in all sectors of activity, with cultural sustainability, natural resource conservation, education, and infrastructure being prioritized (Morgan & Cook, 2015). For instance, new public governance practices have been implemented in Brazil (Andrikopoulos & Ifanti, 2020), South Korea, and China (Kim et al., 2015).

This paper examines how traditional markets (i.e., people’s markets) are managed in Indonesia using the new public governance framework. This interest stems from the fact that traditional markets in Indonesia and their traders currently face numerous challenges, including competition from modern stores and online retailers, as well as the age-old problem of moneylender entrapment. These issues are inextricably linked to the people’s market management model, which is unjust to small traders. Even the decision-making process is driven by traders. This situation is highly concerning, as the people’s market is the primary means by which the lower classes obtain their livelihoods through trade.

Trade is the country’s second-largest employment sector (18.78%) after agriculture (27.56% of 128.76 million employees) (Statistik, 2019). The trading activity takes place in three locations: traditional markets (which account for 15,657 units or 89% of total trading locations), supermarkets (1,279 units or 7.3%), and shopping centers (650 units or 3.7%). Meanwhile, the Special Region of Yogyakarta (Daerah Istimewa Yogyakarta, DIY) has 357 traditional markets (78% of all trading locations in DIY), 87 supermarkets (19%), and 14 shopping centers (3%). West Sumatra has 491 traditional markets (92% of total trading places), 30 supermarkets (5.6%), and 12 shopping centers (2.3%). The predominance of traditional markets in Indonesia demonstrates that traditional markets remain the primary source of income for most people.

This article describes the management of two traditional markets perceived as good in the provinces of Yogyakarta and West Sumatra. The description is based on the concept of new public governance, a relatively new concept in the discipline of public administration. We address the following research questions: Are there elements of new public governance in the management of traditional markets in these two locations? Can the management model in these two locations be applied to other traditional markets in Indonesia?