The 1st International Joint Conference on Science and Technology (IJCST)

October 12-13th, 2016, Bali, Indonesia

REVITALIZATION OF TRADITIONAL MARKET BASED ON

DELIBERATIVE DEMOCRACY CONCEPT

Agus Prastyawan
Public Administration Department, Faculty of Social Sciences and Law, Universitas Negeri Surabaya
Ketintang Street, 60231, Surabaya, East Java, Indonesia
Telp. +6231 8280009, Fax. +6231 8281466
email : agusprastyawan@unesa.ac.id

Abstract
This paper presents the discussion of the revitalization of traditional market based on deliberative democracy concept. It is
obvious that traditional market contributes economically into a certain region. However, the existence of the traditional
market is decreasing since there are modern markets that are fully facilitated by the government. In order to increase the
economic standard of the traders, the government and the legislative revitalized the improper traditional market, without
the participation of the society and the stakeholders. The concrete deliberative democracy is that the existence of the
legislative institution, having the formal procedural democracy to represent people’s aspiration, and ideally may represent
people’s necessity. This system is reliable and considered as the best system to identify meaning and implementation
approach of the real democracy.

Keywords : Revitalization, Traditional Market, Deliberative Democracy

INTRODUCTION
The existence of traditional market links with the activity of society in both city and village. The traditional
market is considered as the heritage of the culture, where there are trading activities that bring up the local value such as,
people’s hospitality in interaction and bargaining for the price. Meanwhile, the development of a city that only relies on the
economy will bring it into a mechanistic development, and as the consequence, the traditional market management was
shoved aside by modern market. Briefly, it will obstruct the local culture. The existence of modern market (including
online business) has threatened the traditional market since 2008-2014 (Liu et.all, 2016).
On the other hand, beside the economic and social impacts, the policy of boosting the existence of modern
market both in city and village causes the negative impacts to the middle and low-class society. One of the consequences is
that it will reduce the number of customers coming to the traditional market since the traditional market is less safe
compared to the modern market. On the other hand, the traditional market revitalization recently, only related to the
physical facilities, whereas the arrangement management was not optimally conducted. While realization and the necessity
of public facility and service are increasing continuously, it effects the higher prices for the public services. As a matter of
fact, the real condition is counterproductive. As what have been stated by Curry that : “The community’s expectations of its
public sector have never been higher”. In this context, the existence of traditional market has centered to be concerned.
The President Regulation Number 112 of 2007 about Traditional Market Development, Shopping Center, and
Modern Store, is considered unable to stabilize the traditional market business generally. The development of modern
market may become a significant threat to the traditional one. Despite there are regulations about distance, zone, and
boundaries stated in President Regulation number 112 of 2007 (unclearly stated), the realization was not optimized.
Moreover, it was found that the location of the traditional market was so close to the modern market. The stores in the
traditional market were out of customers, and only being the path of people passing by. It caused the sellers bankrupt.
Therefore, the government should create a clear and firm policy to stabilize the traditional market and optimize the
competitiveness.
The economic condition in Indonesia that relies on the service and industry sector causes the function changing
through the economic growth, particularly the government regulation concerning with the investigation that tends to follow
the market’s need. In addition, the conflict often occurs in the locations with the high economic value between the
entrepreneurs and common society, or even between the society and the governments or stakeholders. The government
prominently accommodate the entrepreneurs’ expectation in choosing the location that tends to be centered in certain areas.
Therefore, it triggers the social conflicts and environment problems in those locations.
These phenomena generally occurred in the third-world country where the government’s policy of development
tend to favor the group that economically stable (Mc.Auslan, 1986). In local development, the government tends to be
dominant rather than the actors (entrepreneurs and society). The recent result from ADB ( cited in Utoyo, 2010)
strengthened that argument, particularly in public service development in IRDA (Indonesian Rapid Decentralization
Appraisal). This condition related to the “Bold-State Model” concept argued by Stillman (Keban,2004). Thus, it can be
drawn into the conclusion that the government sector dominated the process, and the policy products which is public
interest was characterized government driven. The domination created the bureaucratic approach and rationality of the
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formalism in making decision, without letting the businessman and civil society take apart. Nugroho (2007) mentioned this
the “restricted public policy”.
This condition triggers the bureaucrat having particular group interest, rather than public interest. Though the
bureaucracy should have become one efficient system to help people’s prosperity. However, the fact talked
counterproductively. In this context, the real problem of the public (traditional market sellers) was the rapid growth of the
modern market that reached 31,4%, while the growth percentage of the traditional market was – 8,1% (AC Nielsen, 2004).
The growth of the modern market affected the traditional markets. On one hand, the modern market was managed
professionally with the overwhelming facilities. On the other hand, the traditional market still faces the classical problems
such as less professionalism and the uncomfortable shopping circumstances. Declared by Dwiyanti (2006) that there are
negative arguments concerning with the public organization since the society achieved less quality service of the public
organization.
The expansion phenomena of the modern market, particularly in the big cities, is the concrete example, that city will
have the opportunity to grab new investigation. One of the economic growth indicators is the income from the investor.
The more investors invest their money in a certain region, the more it would be an achievement to the head of the region.
By the expansion of the hypermarket/modern market in the town center will treat the traditional market, especially the
resellers. They become less competitive since the modern market has a good economic support and wide connection. This
advantage makes the modern market easier to sell their commodities at low prices, additionally modern market is more
comfortable than the traditional one.
Furthermore, the concept applied to the modern market such as hypermarket is one-stop shopping concept, where
they also provide the food center as the facility for families to shop and have a meal (Herbst, 2007). The idea comes from
the customers’ expectation, therefore the investors take is as the reaction to expand their hypermarket business (Stehr,
2010). Dietsch (2010) emphasized that when the politicians or the economist talked about institutional design, the objective
retribution commonly is hard to appear in their mind. Additionally, during this period, the construction and modern market
operations such as mini market, supermarket, and hypermarket break the law and constitution.
Beside the less number of customers in the traditional market, internal factors become the strong reason why the
economic growth in traditional market decreasing such as; the customers’ complaint about the facility circumstance, the
dirty environment, less number of dustbins, whiff smell, unsafeness, unhygienic goods, and unfriendly weather. In this
case, the traditional theory will reach the point where the traditional market will fail to analyze the economic relation as the
pure rational action for exchange and optimizing the utilities (Stehr et.al, 2010). Briefly, the modern market and traditional
market are competing in the same market, concerning retail market or retail trading (the business by adding the profit price
to the product and service sold the consumers’ need.)
Analysed from the economic perspective, market became one of the institutions to open job opportunities,
resourcing the low-economic businessman and shopkeeper, store owner and street vendors in that traditional market. There
are 12,6 million people are working as the resellers in 13.400 traditional market in Indonesia (APPSI East Java). Moreover,
the traditional market also employs the distributors.
Based on the Ministry of Commerce record, there are around 4000 markets in 220 regencies, but this survey was not
complete since there were 270 regencies left unsurveyed. The estimate of the traditional markets in Indonesia is 100.000
units. Around 95% of the markets, those have been operated more than 25 years and considered as proper markets.
Therefore, those markets should be revitalized to maintain the existence from the massive expanded modern markets. In
2012, the government allocated 400 million rupiahs for revitalizing 79 traditional markets in the whole archipelago.
Compared to revitalization in 2011 that required 505 million rupiahs, the revitalization budget in 2012 reduced. Besides the
physical revitalization, the merchant management was also revitalized.
One of the purposes of traditional market management is to develop the national economy. It cannot be separated
from the government cooperation to revitalize the traditional markets in striving for the alternative budget; to improve the
merchant competency and traditional market management, and prioritizing the opportunity to expand job location in
market whether it has been relocalized and renovated; empowering the shopping center and the modern market in
developing traditional market; and evaluating the traditional market management (Ministry of Commerce Pers
Broadcasting, 2010).
Revitalization is a prominent aspect in supporting the development of the new and old merchants, and the advantage
can be achieved by the local government. Market revitalization is the right decision to face the traditional market in the
developing era and the customers that expect the improved quality service. However, in several areas, revitalization was
being protested and even condemned. For instance, the revitalization in Blimbing market and Dinoyo market, Malang. The
merchants rejected and blocked the revitalization agenda because the Regional Legislative Council and Government of
Regency did not give them a chance to optimally participate in the agenda as the stakeholders.
The merchants claimed there was strong indication that the officials of Malang Regency searched for the price ratio
from this project, where it was free-cost. On the other hand, the area of Blimbing market that is 3.800 meters square, one-
fourth of the area is for the old merchants, and the rests are for shop buildings. It is impossible for the merchants to rent the
shop since the selling price is extremely expensive. The renovation and revitalization may trigger the government to “lift
up a hand against” the old merchant, as what has been clarified by Indonesian Market Traders Association or commonly

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called Asosiasi Pedagang Pasar Seluruh Indonesia (APPSI). The data recorded that this renovation was camouflaged to
drive the old merchants out of the market. In this matter, if this happens continuously, it will bring broad impacts. Those
are the examples of negative impacts of revitalization, while in fact, not all revitalization process affects negatively to the
merchants. There is an example of revitalization that has been succeeded and achieved a full supports from the merchants
or traders, for instance, Klithinkan market in Solo and Beringharjo market in Yogyakarta.
The Government of Solo applied effective way in revitalizing market without an investor, by interviewing the
merchants before the revitalization was conducted. During the interview, The Government of Solo granted the merchants
as the associates, as the one who participated in the process. They were given socialization concerning with the purpose of
revitalization as a regional budget program, and they gave advice of the expected market concept, in order to unify the
government and merchants expectation. This mediation was the media to bridge The Government of Solo to properly
conducting revitalization.
The Government of DIY also succeeded to revitalize Beringharjo market without engaging investors or the third
party. The merchants and the local government conducted the revitalization by self-supporting budget, using the budget of
the capital merchant, and then the debt was paid monthly. This self-supporting mechanism was considered effective and
did not contribute any disadvantage. While the revitalization in several regions was successfully conducted, it failed to be
applied in some regions. For instance, Kosambi market Bandung, that was labeled the best South-East Asian market, while
the fact says differently. Minimum electricity can be seen in the basement. There was no septic tank and all the liquid waste
of the market thrown away into the real pipe. It triggered the pipe clogged up and flooding the market basement. The
second and sixth floor were empty and left by the merchants since there was no customer shopped in the uncomfortable
environment. The failure occurred because of the lack of communication between local government and the merchants.
The government of Surabaya also failed in revitalizing several traditional markets in Surabaya, such as Blauran,
Keputran, and Turi. The government program to relocate Keputran Market into Induk Puspa Agro Market faces a lot of
obstacles, yet there are merchants of Keputran Market become street vendors. Their reason was classical, is that they are
afraid of losing customers or the number of customers decreased, and the disability to buy new stand/shop. Moreover, after
the burned-out incident of Turi market, there was still uncertain decision by the government for the merchants to operate in
the market after renovated. At last, it showed that the good communication and cooperation between the government of the
city, investors and the merchants failed to build.

DELIBERATIVE DEMOCRACY
In a modern government system, the representative democracy should be absolutely applied. The general elections
and parliaments are one of the ways to aggregate the prominence and guarantee the representative democracy. The
Regional Legislative Council (Indonesian term: DPRD) is an institution to intercept and transform people’s aspiration into
a fit policy (Contino et.al., 2009).
The major function of the representative democracy as The House of Representatives (DPR) and Regional
Legislative Council (DPRD) is to represent people’s voice and realize as the form of policy and regulation in the
constitution. The Regional Legislative Council required the support from the society to create the policy based on people’s
expectation (Canfield et al, 2015), concerning that the society has broad knowledge about the condition in their region
(Mustalahti & Rakotonarivo, 2014). Analysed through that function, the strategic roles must be conducted by all The
House of Representatives (DPR) and Regional Legislative Council (DPRD) members to be the constitutional duty. The
principle of the people sovereignty was marked by the role as the people’s representative conducting the budgeting
function, supervising function, and legislative function to create local government regulation.
In this case, the requirements such as the specific skills, wisdom, proper analysis, and social sensitivity are needed
to practice those functions. While the political parties have prepared for the candidate in the election and who was being
elected was granted as The House of Representatives or Regional Legislative Council member. In Indonesia, the role
implementation as the Regional Legislative Council to realize the function, particularly the legislative function was
honoured published in Indonesian Constitution Number 22 Of 2003 about the Formation and Position of the Consultative
Assembly, The House of Representatives, and the Regional Legislative Council Article 80 Letter (a) and The Constitution
Number 32 Of 2004 about the Local Government Article 44 Paragraph (1) letter (2).
In order to clearly determine the functions of Regional Legislative Council, those functions will be briefly
explained. Legislative Function includes 3 major duties; (a) conciliating the Programme of The Local Government
Regulation that comes from Government or from the Regional Legislative Council’s initiative; (b) Preparing the Local
Government Regulation Programme through the people’s development and (c) Formating the Legislative Committee.
Budget function is divided into 5 main duties according to the Consitution of National Development Planning and
Constitution of National Budget; (a) Conciliating the local government regulation about Annual Regional Budget; (b)
Conciliating the general Policy of Budget; (c) Conciliating Strategy and Priority (S-P) Regional Budget; (d) Arrange the
Regional budget, Expense Budget of Regional Legislative Council and Regional Legislative Council Secretariat and; (e)
Conciliating the Detail and Expense Budget Management Mechanism of Regional Legislative Council.
Whereas, the Supervision Function of Regional Legislative Council has 3 major duties; (a) supervising the
realization of the target of the local income (b) supervising the regulation of region every 3 months and supervising the

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government’ work, and (c) conciliating the Accountability Report of regent or mayor. Another aspect is the Representation
Function of Regional Legislative Council, that includes the mechanism reses of the intensive dialogue between Regional
Legislative Council with its constituents. As the representative institution, Regional Legislative Council is the represented
by the people recruited through a political party. In other words, their electorate gave the mandate in their hands. Therefore,
the participation of the society in the legislative process is the prominent thing to control and stabilize the position and the
proportion of the institution of the local representative.
The major duty of the Regional Legislative Council is determined by the time period and the position as the
member in Regional Legislative Council allocated based on the commission/division. The pressure was triggered by the
position consequence was conducting all the functions mentioned above. In this position, there is a strong opportunity to
“shove” the constituents and neglect the people’s voice. It is because the time for the member of Regional Legislative
Council to interact with their constituents is limited. Finally, all the decisions of the Regional Legislative Council are
considered as people’s aspiration. As a matter of fact, the Regional Legislative Council members only rely on their
perspective and neglect the people’s aspiration, unrealized that they are people’s representative.
The concrete instance of representative democracy such as the general election (in some countries followed by
executive election), is unable to guarantee the democratic government management. It cannot guarantee all the aspirations
(particularly the economically hard-hit people and marginal) will be accommodated into the public policy. As a matter of
fact, the prominent decision about the allocation of country’s resources is expected by the poor society. Prerequisite of the
absolute democracy that needs the division of authority between legislative, executive, and judiciary, should be transparent
and accountable in term of the internal mechanism. If the division of authority and internal mechanism can operate
democratically, the management of the government can be easily reached. However, it was out of the expectation since the
democracy deficit occurs in whole authority.

APPLYING DELIBERATIVE DEMOCRACY IN REVITALIZATION

In early democratic system (19th century), the legislative institution as people’s representative is the formal
procedural democratic institution that represents the aspiration of people, based on people’s expectation. This system is
considered as a properly good system to approach the meaning and implementation of the real democracy. The major
problem that usually occurs in several countries, including Indonesia, is to what extent the chosen legislative members are
able to represent people’s aspiration to optimize the democracy of the country?
In fact, the system cannot be applied as aggregator and articulator of aspiration as the people’s aspiration in wide
aspects, since the democratic procedure in Regional Legislative Council is centered into the group interest or personal
interest. Although the reses were held continuously, the interest paradigm often occurs since the member of Regional
Legislative Council sis unable to aggregate the people’s aspiration well. Briefly saying, a formal democracy that relies on
elections causes the politics deferral is hard to apply. Even in democratic history, democratic system of representative
causes the corrupt government, authoritative, and oppress the people, such as 32 years of President Suharto’s regime.
Deliberative Democracy offers structured deliberation, through a systematic process to accommodate public
aspiration into the arguments as the topic of agenda setting, in order to respect the arguments in dialogue and communicate
between subjects and avoid subjective interpretation. Therefore, the agenda setting that is purposive to achieve,
significantly concerning with the basic right of education, health, and public service can be optimally conducted.
Another problem that appears is a process of formal representative democracy authorized by Regional Legislative
Council members to their constituent is restricted since they expect deliberative democracy that certainly close to the
society. The public substance given by the deliberative democracy is not automatically provided by the formal procedural
democracy that is elected every 5 years. The question is that, how is the access to everyday form politics can be adopted
and even become the prior agenda in Regional Legislative Council mechanism?
The disconnection between the society as the constituent and the legislative as the representatives often occurs.
The bias interest of the legislative members and the political parties often occurs in the aggregation that impacts the
society. Therefore, the local government policy artificially imbalance. The necessity and the people’s aspiration are reduced
that affects to the people’s dissatisfaction. If there are collective people felt dissatisfied, it would trigger the demonstration,
protest, motion and condemn as the way to express their disappointment since the Regional Legislative Council failed to
accommodate the deliberative democracy. The deliberation process toward public policy becomes crucial since the local
parliamentary process indicates the tension of excessive authority structure. As a matter of fact, The Regional Legislative
Council is considered fail to guarantee and accommodate people’s aspiration and collective needs. Therefore the success of
developing the parliamentary process in the region will expand the politic space, to make it easier for public to get
information and knowledge.
Deliberative democracy respects the people’s participation process in making decision that may influence their
life quality and hopefully the government’s program is compatible. The process of making a decision in this system
involved people in participating where there is interactive dialogue and deliberation since these two aspects are the core
process of decision making. In this case, in order to avoid elite monopoly, voting is avoided. This system will also avoid
individual competition to fight over a leader position, and will reduce the money politics practice, terror, violence,
corruption, collusion, and nepotism, or another negative practice. At first, the deliberative approach will take times longer,

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indeed. However, people expect active participation in decision making and it is their right to do as a citizen (Akortor,
2011).
Moreover, people’s participation and the transparency is a basic principle of democracy and good governance. The
regional regulation as the highest regulation in a region will bound both executive and legislative. The transparency,
people’s participation and service public orientation in arranging the regional regulation is a good parameter to what extent
the politic authority of executive and legislative will rule a good governance. Therefore, the legislative process in arranging
draft of regional regulation is more prominent than the result itself. Briefly, the arrangement of the regulation process that
involves legislative and executive is effective to promote a good governance.
People’s participation in the legislative process, for instance, will be an important part to mature and analyze the
local democracy. On one side, the participation of the society can be a bridge to transfer aspiration directly, and
authentically. In this case, bias interest of politic authority can be avoided. In addition, people’s participation can be the
balancing control of the legislative to accommodate people’s aspiration that can be realized based on people’s expectation.
According to laws of Regulation Arrangement Procedure number 10 of 2004 that people are given the
responsibility as the right to involve in arranging the constitution and laws, it is automatically a responsibility for people to
involve in legislation. On the other hand, the rules of Regional Legislative Council cannot be synchronized with the laws
of Regulation Arrangement Procedure number 10 of 2004. And the people’s participation to be active in making the
regulation is hard to realize.
It causes the weakness to guarantee the participation in legislation process, such as the problem of rhetoric
camouflage in responding people’s aspiration, that finally will strengthen the legislative position in local democracy. In
order to decrease the potential of politics demarcation, the rule of Regional Legislative Council should be constructed as
the standardized structure that can be applied in every province. To improve the basic standard that can guarantee the
relationship between legislative and common people, there should be a particular focus on the condition of each region.
The basic structure is required and should exist in order to give the regions chance to improve the specific aspects.
It is prominent since the rule of Regional Legislative Council concerns about technical matters that may trigger conflicts.
In this case, as the basic standard, it should be applied in every province in Indonesia.
The purpose of increasing the quantity and quality of people's participation is an absolute expectation to make
people and legislatives altogether build ideal legislation. This is also the effort to trigger the legislative institution to be
more responsible to the people.
Therefore, it is prominent to measure the improvement and the people’s participation in legislation process that
ideally directed to the internal changes such as peoples’ need and aggregation process of the legislation result.
Substantially, the legislation process of regional development and budgeting are the core to measure the improvement and
the quality of the regional legislative institution.
The parameter can be analyzed through the policy. The more suitable the policy for people, then the lower the
manipulation of legislative. Therefore, maturing and analyzing the local democracy, and increasing responsibility can be
measured successfully improved, if there is a good relation between legislative and people. The last hope for the
improvement is that the response of the regional policy is more accurate, to support the process of the regional
development and people’s prosperity.
Generally, the revitalization of the traditional market only concerns to the physical building and overlook the
aspects of merchant management. The government’s assumption only centered on the environment of the traditional
market such as tardiness and uncomfortably. While O’Hara (Akortor, 2011) concluded that the local government and
Regional Legislative should involve local people to identify their necessity, not only making an assumption.
In recent 3 or 4 decades, the government of Bangkok granted a freedom for the transnational investors interfering
the management of the market, to create a modern and innovative mode, with sophisticated technology, that effected to the
bankruptcy of the traditional market in Bangkok (Wongleedee, 2015). On the other hand, the lower income they achieved
was because; the minimum information and knowledge of the merchants; the lack of update of their merchandise; the
changing of the consumers’ lifestyle, and last, the less promotion.
Revitalization does not only focus on physical construction, the infrastructure is also the significant aspect, such
as improper parking lot zone system and the treatment of building, and the inconsistency of the stand location. There is a
correlation between the consumers’ behavior to the infrastructures. The research stated that the customers’ satisfaction may
influence other customers, and finally, the customers will recommend the place to the others. This factor that is left
unthought by the legislatives and the government in revitalizing the traditional market. It is rare where people’s aspiration
can be considered in revitalization, in fact, it is people’s expectation to participate in it. Because they acknowledge the way
they interact with their customers.
If the market is organized properly, it will attract local or foreign tourist, for instance, float market in Thailand and
South Kalimantan. The products that are offered describe the local wisdom and lifestyle of the surrounding society
(Wongleedee, 2015). Besides, it will also contribute to increasing the regional income.

CONCLUSION

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October 12-13th, 2016, Bali, Indonesia

Deliberative democracy is a basic foundation in revitalizing the traditional market that will increase people's
prosperity, and also as the promotion of the local wisdom. Finally, it will succeed to increase regional income in a region.
The legislative and the government should cooperate to accommodate people’s aspiration to reach the optimum result of
revitalization. The case that generally occurs is that the revitalization was conducted without people’s participation.
Additionally, the government only focused on construction that affected to the unoptimized interaction between sellers and
customers.

ACKNOWLEDGEMENTS
The author would like to thank the dean of Faculty of Social Sciences and Law, Universitas Negeri Surabaya facilities for
giving some results of the study conducted.

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