maryanto Tri wahyu widiastuti Faculty of Law Unissula [email protected]
Abstrack
Retail which originally comes from the French retailer who then absorbing by English meaning retail trade at retail to end-user consumer society as a goods / services. as much effort occupied by the people of Indonesia and absorbing labor into the second largest after agriculture, retail settings have not sided with small businesses. Retail set based on Presidential Decree 112/2007 and Regulation 53/2008. Both of these policies in the retail industry is not regulated by rigid. So that large-scale enterprises in the retail field can be expanded up to a residential area which resulted stout small businesses can not survive longer mengahadai head to head competition so that it must close down. The situation is thus incompatible with the objectives of the establishment of the Republic of Indonesia as stated in the preamble of Indonesia constituion 1945.
In the European Union, Retail arranged in such a way that includes the operating time, the operational area, spacious shop, so it does not kill small businesses. Although there are different arrangements for each of the EU member states, but in general the protection of small retail businesses are very rigid and sanctions are closing shop. Unlike in Indonesia, modern retail location is in the center of town and township residents region with the opening hours without a day off, in the EU it is not possible.
Keywords: Comparative Retail Settings, Indonesia, the European Union.
Preface
Since the enactment of the market economic system in Indonesia in 1983 that keudian to overcome the economic crisis held Letter Of Intense (LOI) with the IMF in 1998, Indonesia’s economic situation to be getting better at this time. But on the other hand the economy of the people -many occupied by small businesses especially ritel- become increasingly neglected. Such condition because our country is pursuing economic growth rate of the number of people’s welfare as has been outlined by the preamble of Indonesia constituion 1945.
As a labor-absorbing second largest after agriculture, small businesses, especially retailers have not received adequate attention from the government. Whereas there are currently approximately 56 million Indonesian workers who pursue these fields. When this area gets serious attention from the government then certainly their earnings will improve with such issues of social inequality by itself would be narrowed which in turn will affect Indonesia’s national income (Gross Domestic Gross) increased where it greatly affects the nation’s welfare index. Keep in mind that large countries like the US and Japan, for example, 90% of those prosperous economy contributed by small businesses.
Issues
Setting the retail industry who are not partial to small businesses has resulted in many small businesses who need bankruptcy because they were unable to compete with modern retail businesses owned large widely spread in the village in Indonesia. Policy setting retail industry thus needs to be examined because it has made Indonesia more liberal market. Unlike in the EU which, although in these countries adopting a liberal economy but small businesses in the field of retail adequate protection .
Under the circumstances as described above, the question arises how is a retail setting in Indonesia and in the European Union ?
Discussion.
1. Setting Retail in Indonesia
There are many models of the work done by small businesses one of them is in the form of a retail business or often known as retail. Many retail businesses occupied by small businesses because it does not require high education and special skills.
The term is derived French retail ritellier, which means to cut or break something. Said retail or retail means retail or retail trade, or the retailer and the retailer or retailer or entrepreneur is defined as retail trade. According to the dictionary, retail interpreted as “selling of goods or services to the public“ sale of goods or services to the public. Retail term can be understood as all activities of sales of goods or services directly to the final consumer for personal use and not business.1 The market structure of the retail industry today can be classified into micro, small, medium and large .
Retail business has been chosen by the business because it promises a bright prospect although there are some drawbacks. Here are some advantages and disadvantages of retail businesses, among others. Retail excess capital required is quite small; a strategic location that is close to the consumers eg at terminals, stations, residential and office; retailers with customer relationship close enough because of the two-way communication. Was short on retail businesses are : the expertise to manage small-scale retail stores is less noticed by retailers because it is considered as a sideline as an extra income, administration pembukuian less attention by the retailer so it is difficult to know the advantages and the quantity of goods sold. Less promotion so that retail presence is not known to consumers .
Retail business actor can be classified based on business scale into large retailers and small retailers. Major retailer that retailer that provides one type of goods and various goods in to the customers in a big store. In the normal course of business in large-scale retailers to provide
businesses who do not have a specific location in the conduct of its business, eg by using push carts, bicycles or tools to carry.2
At first retailing is a local business with a management that is simple, small capital and the ability to manage the business as much as possible. Retailers such later called traditional retailers.
Changing times and then a lot of growing retailers with large capital, a complete product, the mastery of information systems are qualified and trained human resources with modern management. This is then referred to as modern retail. In the era of globalization they then carry out expansion to various countries to gain a large market opportunity as part of a marketing strategy, as a result of international trade policies that remove barriers in trade. Abolition of trade barriers have led to an influx pritel-modern foreign retailers into the national market, such as Giant, Wall Mart, Lotte Mart, Carrefour. Today’s retail industry is a strategic industry because it is the largest industrial employer of Indonesia into two after agriculture.
Small businesses engaged in traditional retail is currently not able to withstand the aggressive expansion of modern stores and even many of them who later have to close the business because of competition. Competition in the field of retail business is occurring so intense, in the absence of prohibition / restriction region that modern retail stores that can stand freely in residential areas throughout Indonesia in both rural and urban areas. In addition to the absence of a ban on the operation of modern retail stores such as minimarkets, which led to many small businesses out of business because of competition because generally owned by large businesses which have advantages in terms of capital and management than small businesses .
Unbalanced state of competition is, increasingly become since the government liberalized trade in 1998. The liberalization marked by the signing of a letter of intense with the IMF which provide investment opportunities to foreigners to enter the retail industry. Competition head to head ( directly opposite) due to the proliferation of modern retail an adverse impact on traditional retail presence. One of the real impact of modern retail presence in the midst of traditional retail is the reduction of small traders and small merchants decline in turnover so that eventually then lead them out of business. There are some differences between the characteristics of a traditional market where traditional retailers are generally located in the moder market place where modern retailers generally located .
Tabel 1
Differences in the characteristics of the Traditional Market Modern Market
No. Aspect Traditional market modern market
1 History Long evolution New Phenomenon
2. Physical The majority poorly. Nice and fancy
3. Owner Community/Village/local goverments/ Private 4. Capital Weak / subsidy / governmental /
President Instruction. Big/strong capital and private actuated
5. Consumers middle class down to the upper middle class
6. The method of payment is served, the bargaining Supermarkets Self service, no bargaining
7. Status of land state land Generally private / individual
8. Financing subsidies No subsidy
2 http : /plus.google.com / .. posts / cBZYa7ZY4qx downloaded December 16 2015 hours . 16 .
No. Aspect Traditional market modern market 9. Development by the local government / village /
community in general physical
development by private 10. Traders Traders Small, medium, large owners are also traders ( single ) / some traders formal medium and large scale
11. Opportunities entry/
participation Characteristically mass ( small traders,
medium and large ) Limited, generally sole traders and medium and large.
To anticipate these circumstances, namely to protect the interests of small businesses nationwide retail sector, the government has issued Presidential Decree No. 112 2007 About the Management and Development of Traditional Markets, Shopping Centers and Modern Stores, regulation regulates traditional retail and modern retail in particular related to zoning that restricts the development of modern markets and reduce its impact on the traditional markets, as well as also discussed opening hours, permitting up to issue trading terms (terms of trade) are very disturbing modern market suppliers. The problem that occurs is the extent to which the rule is effectively implemented and the impact on small businesses. Not only is it then at the end of 2008 the government issued rules that supporters of Presidential Regulation No. 112/2007 53 year 2008 on Guidelines for Planning and Development of Traditional Markets, Shopping Centers and Modern Stores. This Regulation shall be regulated in detail on the issue of Zoning and trading terms
The publication of the regulation and the Regulation has no meaning if it is not followed by the implementing rules in the area because the local government has a very important role in the development of the retail industry in its region associated with licensing, zoning and shop opening hours. What is stipulated in Presidential Regulation and this Regulation it has been a source of free fight liberalism because it only regulates hypermarkets and wholesale (area above 5,000 m2), supermarkets (400-5000 m2 area) and department stores (the area above 400 m2) but not set minimarket (area under 400 m2) with the minimarket or commonly referred to as a modern store can be expanded up to the region both rural and urban settlements without can be regarded as unlawful. In addition to the provisions hour open / close the shop does not apply to the minimarket anyway. It is thus clear that worrying for business continuity for traditional stores owned by small businesses.
To overcome this problem of protecting small businesses in the field of retail / retail for traditional versus modern retailers are generally the larger one can take a sample of the protection provided by the French government to small businesses in the field of retail / traditional retail which prohibits / do not give permission to the establishment of retailers mostly located in the city center.
So that consumers who need things he wanted to go outside the city where the major retailers are located. In Japan to obtain a permit the establishment of new entrants retailers must obtain a permit from existing retailers, which subsequently after permission is obtained, the prospective retailer is reported to the local government or the ministry of international trade and industry5. Retail policy which can be taken as an example of the unequal treatment of the small businesses in the retail field by retailers of large and medium-sized businesses (modern retail). In addition to the above policy as necessary also for strict controls over the opening hours and closed modern retailers for example at 10:00 to 23:00. Nothing like this to give an opportunity to the population so that if you want to shop before modern retail opening hours can be done in traditional retailers. Competition policies are thus obliged to do given the constitutional mandate that the state should promote and protect small and medium-sized businesses. Protecting small and medium businesses is more important than just trying to maintain freedom of competition as the Commission’s decision dated July 4, 20016
Decreasing the number of retail traders / traditional retail in significant quantities as a result of competition from modern stores are growing so fast as if it makes economic objectives Pancasila in favor of the common people as stated in Article 33 of the Constitution NRI 1945 and MPR xVI of 1998 of Political Economy in the Context of Economic Democracy has been further away.
Some things to note that traditional retailers as a manifestation of people’s economy is not growing in a weak position are as follows :
1. Taking into account the problems that often arise in the retail industry in Indonesia as a whole as well as the facts that occurred after the issuance of Presidential Decree No. 112 of 2007 and Decree No. 53 of 2008 , then the solution is to do the right policy restrictions on the modern retail market power of retailers that are not too large so that the potential for its abuse can be minimized . The policy solution that the Zoning System and Term Trading Restrictions magnitude . There was also the need of holding the prohibition ( negative list of investment ) for large businesses to open shop / modern retail network with an area of 400 m2 down in the villages / settlements.
2. Policies zoning system is done to limit the market power held by large modern retailers.
It is mainly addressed to hypermarkets and minimarkets very aggressively dominate the retail industry. One way is to limit the number of modern retail outlets. Such restrictions can be done by not giving permission for the modern retail business for the future and to cancel a permit that has been put in place if there is a violation of zoning. Rules regarding zoning should be tightened and limit the number of retailers in each region in accordance with the conditions of the surrounding community.
. Medngambil instance the period 2004-2007 , the growth rate reached 50 % annually Supermarket . In the same period , the growth of hypermarkets even reach 70 % ( SWA 06 / xxV / 2009 in the Magdalene Minarsih , Small Traders " stall " in Modern Retail strikes , hlm.88 ) .
5 Sakda Thanitcul, SMEs And Competition Law. A Case Study On Supliers of Goods to Large Retail Stores, Jurnal of competition Studies, Vol 15 No. 3 (2008), hlm. 38-39.
6 Ibid, P. 41