Impact of Hypermarket Expansion on Regional Traditional Market

The aim of this research are i) identify the factors that influence consumers’ willingness; (ii) the impact of hypermarkets in Indonesia to number of traders, opening hours, number of buyers, turnover traders in traditional markets, and the traditional market itself; (iii) economic impact of hypermarkets on economic growth, employment, consumer and government revenues; (iv) formulating policy recommendations to improve the performance of traditional markets and setting the establishment of hypermarkets. Secondary data analysis showed that every additional amount of modern markets (supermarkets) not decrease the number of traditional markets (shops or stalls). This shows that modern markets and traditional markets are both growing and is "complementary" to each other. The study results indicate that the contribution to nonoil GDP of traditional markets (shops or stalls) larger than the modern market (supermarket). However, the opposite condition occurs, the modern market (supermarkets) in the province, has a greater contribution to revenues, compared to the municipal/district. In contrast, non-traditional markets have economic advantages from the standpoint of macro-economic interests, such as the provision of choice of business opportunities, employment and output contribution, although those options may cause conflict with the interests of local governments to raise the revenue