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2021 February; 15(2): Pages 1-5 https://doi.org/10.22587/aeb.2021.15.2.1 ORIGINAL ARTICLE AENSI PUBLICATIONS

Mattirowalie Traditional Market Structure in

M. Rasda1, M. Saleh S. Ali2, Hamka Naping3, Nurbaya Busthanul2

1Student of Doctoral Program in Agriculture, Hasanuddin University, 2Department of Agricultural Socio-Economics, Faculty of Agriculture, Hasanuddin University, Indonesia 3Department of Anthropology, Faculty of Social and Political Sciences, Hasanuddin University, Indonesia

Correspondence Authors: M. Rasda, Student of Doctoral Program in Agriculture, Hasanuddin University, Indonesia E-mail: [email protected]

Received date: 30 December 2020, Accepted date: 28 February 2021

Cite as: M. Rasda., M. S. S. Ali., H. Naping., N. Busthanul., 2021. Mattirowalie Traditional Market Structure in Barru Regency. Advances in Environmental Biology, 15(2): 1-5. DOI:10.22587/aeb.2021.15.2.1.

Abstract Market structure is information about business behavior and market performance which is explained through market conditions. This study aims to determine the structure of traditional markets in Barru Regency, South Province by looking at the distribution channels of products that occur at the level of traders involved in trading activities in the traditional markets of Barru Regency. The results of research in the field show that in the traditional market Mattirowalie, Barru Regency, Province has a market structure with a level of distribution network for agricultural products. Initially these goods were obtained partly from producer farmers (Barru seller farmers), partly from wholesalers (agents) who originating from other districts enter into collectors and retailers in the traditional market Mattirowalie, Barru Regency, especially wholesalers (agents) of rice and vegetables, then collectors after obtaining goods sell their merchandise to local retailers, then retailers sell or distribute their merchandise to local retailers. buyers / consumers in the traditional markets of Barru Regency.

Keywords: Market Structure, Traditional Market, Distribution Network

INTRODUCTION

The market as an institution has a structure and function. In the market, there are social structures formed from the activities of market players in the form of traders/sellers, consumers/buyers and regulators (government). The system built is dynamic because the actors or actors come and go in the market arena. The market has the meaning of a place where sellers and buyers meet until a transaction occurs. Currently, the market that happens in the community is not only a traditional market. Nuraini dan Merdekawati (2013) argues that conventional markets emphasize the physical meaning of markets, so traditional markets are often referred to as concrete markets [1]. Asribestari dan Setyono (2013), Explain that a traditional market is a market where sellers and buyers bargain directly so that a price agreement occurs between the two parties [2]. Nahraeni et al. (2019) argue that traditional markets are more traditional and more straightforward than modern markets [3]. Traditional markets are private ownership. The existence of traditional markets is one of the most important indicators of economic activity [4].

The market includes the entire demand and supply of all contacts or interactions between sellers and buyers to exchange goods and services "[5]. Meanwhile, what is meant by traditional markets is an important economic sector for the majority of the population in Indonesia. There are not a few poor people who depend on conventional markets. Traditional markets in rural areas are usually connected to traditional markets in urban areas used to become wholesale centers for traders in the surrounding rural markets [6].

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According to the Minister of Home Affairs Regulation. Regarding Village Market Management. 2007 “Traditional Market is a market that is built and managed by the government, private sector, cooperatives or local community organizations with business premises in the form of shops, kiosks, booths and tents, or other similar names, owned/managed by small and medium traders, with small scale businesses. and small capital, with a buying and selling process through bargaining”[7]. The traditional market is the center of social-economic activity for the people. Thus the pattern of economic relations in traditional markets results in close social interactions between traders-buyers, traders-traders and traders-suppliers, which is a social legacy representing the need to socialize between individuals. The market, in this case, is an economic institution as well as a way of life, a general style of economic activity that covers various aspects of society, to the complete aspects of socio-cultural life contained therein. Multiple products or merchandise are traded in traditional markets, food, clothing, and other goods, most of which have the character of being easily transportable [8].

Traditional markets must be resilient to develop in line with modern developments; the market's critical cultural qualities tend to fade as markets become modern rather than previous [9]. Traditional markets are expected to develop, and the influence of other styles that are considered superior in market development is needed [10]. From these findings, the study recommends better integration of market space along with new trends of modern markets with various infrastructures that go beyond traditional market sites [11].

What is interesting about traditional markets is that traditional markets provide things related to the needs of the community or the public, who are the majority of the small community. The implication is that traditional markets have a high strategic value in maintaining the balance of regional development and controlling the wheels of the economy [12]. Traditional markets have advantages in three aspects: first, from the economic aspect, lower prices, fresh stock of goods, support / strengthen the economy; second, the social element, namely being a place of recreation due to the presence of a market square for visitors; third, the religious aspect, namely the existence of trust between the seller and the buyer [13]. Over time, a middle path emerged between the two, namely an interventionist model where the government frees the market to regulate itself. However, there are outline rules for avoiding market failure. In addition, the government also has the right to intervene in the market when certain things happen.

Market structure is a market classification based on its structure which can be seen from the number of producers and consumers, product characteristics, easy entry and exit of the market, and whether or not market information is available [14,15]. Knowing the market structure can be seen whether the market leads to a perfect market or an imperfect market. Market structure is characterized by the number of sellers and buyers, market concentration, homogeneous or not products, and freedom to enter and exit the market [16]. Market structure can be said to be a collection of various factors that affect the level of competence in the market. Multiple factors influence the market structure, among others: The level of mastery of technology, demand for a product, place, barriers to entry and product elasticity [17].

The reality of the Mattirowalie traditional market in the Barru Regency currently shows the weak position of producers (farmers providing Barru agricultural goods). This is due to many large traders (agents) from other districts drop/sell goods to retailers and traders of traditional market collectors Mattirowalie, Barru Regency. Moreover, a conventional market collector such as rice originating from Big traders (agents) of Soppeng, Sidrap, and cabbage and mustard vegetables come from big traders (agents) of Enrekang so that this also causes a weak position in the distribution chain, especially at the producer (farmer) level.

The Mattirowalie traditional market in Barru Regency is unique in terms of market structure, in which several types of traders build business networks to trade various kinds of agricultural products such as rice, fish, chicken and beef, vegetables and fruit. But on the other hand, the mechanisms that occur in the market in the trading system context are still considered weak. So that the locus of this research was carried out in the Mattirowalie traditional market, Barru Regency, Sulawesi Slatan Province. The purpose of this study was to determine the structure of conventional markets in Barru Regency, South Sulawesi Province, by looking at the chenel distribution that occurs at the level of traders and buyers who are involved in trading activities in the traditional markets of Barru Regency.

RESEARCH METHODS

The case study research method has a basic concept developed by researchers, especially research methods that are interpretive descriptive. Case studies examine specific cases in a context or contemporary real-life setting and an essential issue from various perspectives, purposive sampling (to select subjects that are considered significant), followed by a holistic analysis of the case. Choose a detailed description of the patterns, contexts, and settings in which the issue occurred. The sample in this study was not named respondents, but as sources, participants, [18]. This study uses a qualitative approach, where a qualitative approach requires sources of data and information.

RESULTS AND DISCUSSION

Characteristics of Barru Traditional Market and Traders

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The characteristics of the Mattirowalie traditional market in Barru Regency are as follows: (i) Traders in this market are small traders, not giant retailers with limited capital, (ii) competition space for traders is limited. Traders generally are small-scale and face a fairly long marketing chain to buy goods to be sold, (iii) low-cost advantages, (iv) have not used high technology in administration and its management is still simple, (v) the goods traded are vegetables, rice, fish, meat, daily necessities, raw materials, and other kitchen necessities. (vi) the number of workers used is not large, and (vii) consumers are still served by sellers.

The Mattirowali traditional market in Barru Regency tends to sell local goods. In terms of capacity, the Mattirowalie traditional market generally has a small stock of goods according to owner's capital or consumer demand. It does not yet have a fixed price in terms of cost because it is adjusted to the amount of profit desired by each individual trader in the Mattirowalie market. This is also in line with what was stated by Dewi (2011), that in terms of price, traditional markets do not yet have a fixed price because it is a fixed price because it is adjusted to the amount of profit desired by each individual business owner. In addition, the market price is constantly changing, so using the price tag is more troublesome because you have to change the price tag according to price changes in the market [19]Based on the results of research in the field, it turns out that the traders in the Mattirowalie traditional market in Barru Regency are mostly small traders with limited capital. Traders are generally small in scale and face considerable marketing chains to purchase the goods to be sold.

Distribution Network Structure According to M. Athoillah (2005), the theory about market structure is that every company or factory that operates to produce output must decide two crucial things. The first is to decide how much output to produce, and the second is to determine the price of goods to be sold or marketed [20]. There is a chance that it will be sustainable in the transaction process based on social interactions that occur because traders and buyers know each other [21].

Several types of traders involved in the Mattirowalie Barru traditional market who trade various agricultural goods are wholesalers (agents) and outside the district, collectors and retailers. In the context of the trading system, 3 (three) types of distribution networks occur at the merchant level in the traditional market of Mattirowalie, Barru Regency. Categories based on the structure of the trades can be seen in the following table:

Table 1: Categories and Activities of Traders in the Mattiwowalie Traditional Market, 2019 Category Traders Amount of Traders Trading activity structure Agricultural of agricultural Products products Wholesalers 12 Trades Sell goods to collectors, and Rice, Vegetable, fish (agents) collectors sell goods to retailers

Collecting 6 Trades Sell goods to retailers, and retailers Broiler, fish, traders sell goods to consumers / buyers. Vegetable, fruit Retailers 23 Trades sell goods to consumers / buyers or Rice, Meat, Broiler, consumers obtain goods from fish, vegetable, fruit. retailers Source: Research Results in the Market Mattirowalie Barru Traditional Market, 2019

1.Wholesalers (agents) sell goods to collectors, and collectors sell goods to retailers. The distribution network of goods in the Mattirowalie traditional market in Barru Regency based on the results of research in the field shows that large traders (agents) from Soppeng and Sidrap districts bring their rice from their respective regions and then sell them to rice retailers at the Mattirowalie Barru traditional market according to orders from retailers. The rice that wholesalers sell to retailers is rice that has been packaged in sacks of an average of 25 kg, and the rice has been cleaned. However, several informants/informants at the Mattirowalie market as rice retailers when they have obtained the goods are not sold directly to consumers but are cleaned and repackaged then the rice is sold to consumers. Furthermore, retailers who trade cut chicken meat in the Mattirowalie traditional market get merchandise from wholesalers (agents) from within the Barru Regency area and producer farmers (chicken breeders). The system is that chicken goods are delivered directly by wholesalers (agents). Some retailers come to the producers (farmers and breeders) at their homes to get merchandise. Likewise, with beef retailers in the Mattirowlie Barru traditional market, there are only two beef retailers. They get goods from producer farmers (Barru farmers). If the retailers have bought cattle, they slaughter them at their respective homes and then bring them to the Mattirowalie market to be sold to consumers in the Mattirowalie Barru marketplace.

Meanwhile, traditional market fish retailer Mattirowalie Barru obtains merchandise from collectors in Lelong Sumpang Binangae, the largest fish auction center in Barru. In contrast to vegetable collecting traders, some vegetable collectors get their merchandise from vegetable wholesalers (agents) from . Collectors who sell their inventory to retailers in Mattirowalie Barru traditional markets and some vegetable retailers get goods from Barru producer farmers. Then retailers sell their vegetables to consumers in the market. Likewise, fruit retailers, especially bananas at the Mattirowalie Barru traditional market, get their merchandise from wholesalers (agents) from and get goods from Barru producer farmers.

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2.Collecting traders sell goods to retailers, and retailers sell goods to consumers/buyers. According to the results of research in the field, it shows that there are types of agricultural goods that collectors trade to retailers, namely vegetables, but the commodities of rice, fish, chicken, beef and fruit do not go through collectors but directly from rice wholesalers (agents), agents, chicken, fish ageng, while the commodity of beef and beef from retailers. So in terms of the distribution network of agricultural goods in rice, fish, chicken, beef, vegetables and fruit, each has different network sources. The average commodity of farm products, except rice and some types of vegetables, is distributed directly from retailers and retailers to sell to consumers.

3. Retailers sell goods to consumers/buyers, or consumers obtain goods from retailers. On average, fish retailers, broiler chicken retailers, rice retailers, some of these vegetables get merchandise from wholesalers (agents), some come from outside the district, and some come from within the Barru Regency area. The retailers in the market Mattirowalie sells these goods directly to consumers.

Policy Implications As emphasized by Wilson, public policy shows the serious efforts made by the government for the welfare of the community through regional regulations or laws that become the umbrella for implementing an approach [22]. Based on the Regulation of the Minister of Trade of the Republic of Indonesia Number 53 / M-DAG / PER / 12/2008 concerning Guidelines for the Arrangement and Development of Traditional Markets, Shopping Centers and Modern Stores Chapter 2 Establishment of Traditional Markets, Shopping Centers and Modern Stores Article 2 Paragraph 1 states the location for Traditional establishment Markets, Shopping Centers and Modern Stores, must refer to the Regency / City Spatial Plan and the Regency / City Spatial Layout Detailed Plan including its zoning regulations [23]. Government regulations have the right to regulate the existence of traditional markets and modern markets [24].

The traditional market sector public policy is currently an essential element for increasing local revenue (PAD) [25]. The impact of PAD will encourage community welfare and strengthen regional finances [26]. In maintaining the bargaining position of retailers (sellers) in the traditional market of Mattirowalie, Barru Regency, from large traders (agents) from outside the region, it is hoped that there will be a Barru Regency government regulation in terms of the mechanism for selling goods which are regulated according to the applicable standard price of goods, so that retailers who obtain goods from wholesalers (agents) having a good price bargaining position as well as at the consumer or buyer level, consumers can buy goods from affordable retailers/sellers at prices characterized by traditional markets. Likewise, producers (Barru farmers) need the attention of the local government so that local products produced by Barru farmers continue to sell well at the retailer level and their products are still in demand by the consumer community in the market.

CONCLUSION

The market structure that occurs in the Mattirowalie traditional market, Barru Regency, South Sulawesi, has a level of merchandise distribution network, which starts from most wholesalers (agents) from other districts, collectors in the Mattirowalie Barru traditional market, retailers in Mattirowalie Barru traditional markets, then to consumers in the market to be traded. The field shows that, on average rice retailers, fish retailers, broiler chicken retailers, beef retailers, vegetable retailers, and fruit retailers who sell in the Mattirowlaie Barru traditional market work together to build a distribution network (channel distribution) for large traders. (agents) as well as collectors in the market. On the other hand, producers (Barru farmers), especially rice producers, seem to be weak because most of the rice sold by retailers in the market comes from other regions.

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