Protection of Small Retail Traders

Oct 13, 2025 by magicalceylontours.com 98 views

Impact of Indomaret Network on the Socio-Economic Conditions of Retail Traders in Padang Bulan Village, Medan City

Introduction

The rapid growth of Indomaret retail networks in various regions, including Padang Bulan Village, Medan City, has created significant socio-economic dynamics. Initially, Indomaret operated primarily in big cities, but has now penetrated to rural areas, presenting fierce competition for traditional retail traders. With the existence of a wide network owned by Indomaret, small traders began to feel the negative impact of this increasingly open competition. This study aims to investigate the impact of Indomaret networks on the socio-economic conditions of retail traders in the region.

Background of the Study

Indomaret is a retail network that has been growing rapidly in Indonesia, with a presence in various regions, including Padang Bulan Village, Medan City. The company's expansion has created significant socio-economic dynamics, with both positive and negative impacts on the community. On the one hand, Indomaret has created job opportunities and increased access to goods and services for consumers. On the other hand, the company's expansion has also led to the decline of traditional retail traders, who are struggling to compete with the company's wide network and low prices.

Methodology

This study uses a quantitative approach with the correlation study method, which was carried out on 40 retail traders in Padang Bulan Village. Data collection was carried out through direct observations, interviews, and the distribution of questionnaires. The data was then analyzed using RHO Spearman's Rank Order Correlation with the help of SPSS version 21.

Indomaret Network Analysis and Its Impact

The results of the study show that there is a negative relationship between Indomaret network expansion and the socio-economic condition of traders. The correlation coefficient produced is -0.336, which shows that the development of the Indomaret network is associated with a decline in the socio-economic conditions of traders. This can be interpreted that many small traders experience decreased income due to reduced customers who shop at their stores.

Changes in Regulation and Its Impact

This study also revealed changes in regulations that support Indomaret's expansion. One concrete example is the elimination of zoning in Medan Mayor Regulation No. 20 of 2011, which makes it easy for Indomaret to develop without certain areas. This policy shows that there is a great opportunity for Indomaret to expand its reach, which in turn threatens the sustainability of the business of small retail traders.

Social and Economic Effects

The social impact of the existence of Indomaret also cannot be ignored. Many small traders were forced to go out of business due to the pressure of the competition faced. The decline in the number of customers in traditional stores resulted in reduced income, which in turn led to economic instability in the community. This situation creates dissatisfaction among retail traders and can trigger social tension.

Conclusion

Seeing the results of this study, it can be concluded that the Indomaret network has a significant impact on the socio-economic conditions of retail traders in Padang Bulan Village, Medan. The ongoing expansion not only shook the local market, but also has the potential to change the socio-economic order of the community. Therefore, it is important for the government and stakeholders to find solutions that can regulate and protect small retail traders in order to survive in this increasingly fierce competition.

Recommendations

Based on the findings of this study, the following recommendations are made:

Regulation of Indomaret's Expansion: The government should regulate Indomaret's expansion to ensure that it does not harm the interests of small retail traders.
Protection of Small Retail Traders: The government and stakeholders should find ways to protect small retail traders from the negative impacts of Indomaret's expansion.
Development of Traditional Retail Traders: The government and stakeholders should develop traditional retail traders by providing them with training and resources to compete with Indomaret.
Creation of Job Opportunities: The government and stakeholders should create job opportunities for small retail traders who are forced to go out of business due to the competition faced.

Limitations of the Study

This study has several limitations, including:

Small Sample Size: The study was conducted on a small sample size of 40 retail traders, which may not be representative of the larger population.
Limited Data Collection: The study relied on data collection through direct observations, interviews, and questionnaires, which may not provide a comprehensive understanding of the issue.
Correlation Does Not Imply Causation: The study found a correlation between Indomaret's expansion and the socio-economic conditions of traders, but it does not imply causation.

Future Research Directions

This study provides several directions for future research, including:

In-Depth Study of Indomaret's Expansion: A more in-depth study of Indomaret's expansion and its impact on the community would provide a more comprehensive understanding of the issue.
Study of the Impact of Indomaret on Other Industries: A study of the impact of Indomaret on other industries, such as agriculture and manufacturing, would provide a more comprehensive understanding of the issue.
Development of Strategies to Protect Small Retail Traders: A study of the development of strategies to protect small retail traders would provide a more comprehensive understanding of the issue.
Frequently Asked Questions (FAQs) about the Impact of Indomaret Network on the Socio-Economic Conditions of Retail Traders in Padang Bulan Village, Medan City

Q: What is the main objective of this study? A: The main objective of this study is to investigate the impact of Indomaret networks on the socio-economic conditions of retail traders in Padang Bulan Village, Medan City.

Q: What methodology was used in this study? A: This study used a quantitative approach with the correlation study method, which was carried out on 40 retail traders in Padang Bulan Village. Data collection was carried out through direct observations, interviews, and the distribution of questionnaires.

Q: What were the findings of this study? A: The findings of this study show that there is a negative relationship between Indomaret network expansion and the socio-economic condition of traders. The correlation coefficient produced is -0.336, which shows that the development of the Indomaret network is associated with a decline in the socio-economic conditions of traders.

Q: What are the implications of this study? A: The implications of this study are that the government and stakeholders should find solutions that can regulate and protect small retail traders in order to survive in this increasingly fierce competition.

Q: What are the recommendations of this study? A: The recommendations of this study are:

Regulation of Indomaret's Expansion: The government should regulate Indomaret's expansion to ensure that it does not harm the interests of small retail traders.
Protection of Small Retail Traders: The government and stakeholders should find ways to protect small retail traders from the negative impacts of Indomaret's expansion.
Development of Traditional Retail Traders: The government and stakeholders should develop traditional retail traders by providing them with training and resources to compete with Indomaret.
Creation of Job Opportunities: The government and stakeholders should create job opportunities for small retail traders who are forced to go out of business due to the competition faced.

Q: What are the limitations of this study? A: The limitations of this study are:

Small Sample Size: The study was conducted on a small sample size of 40 retail traders, which may not be representative of the larger population.
Limited Data Collection: The study relied on data collection through direct observations, interviews, and questionnaires, which may not provide a comprehensive understanding of the issue.
Correlation Does Not Imply Causation: The study found a correlation between Indomaret's expansion and the socio-economic conditions of traders, but it does not imply causation.

Q: What are the future research directions of this study? A: The future research directions of this study are:

In-Depth Study of Indomaret's Expansion: A more in-depth study of Indomaret's expansion and its impact on the community would provide a more comprehensive understanding of the issue.
Study of the Impact of Indomaret on Other Industries: A study of the impact of Indomaret on other industries, such as agriculture and manufacturing, would provide a more comprehensive understanding of the issue.
Development of Strategies to Protect Small Retail Traders: A study of the development of strategies to protect small retail traders would provide a more comprehensive understanding of the issue.

Q: What are the implications of this study for policymakers? A: The implications of this study for policymakers are that they should take into account the impact of Indomaret's expansion on small retail traders and develop policies that can regulate and protect them.

Q: What are the implications of this study for business owners? A: The implications of this study for business owners are that they should be aware of the impact of Indomaret's expansion on their business and develop strategies to compete with Indomaret.

Q: What are the implications of this study for consumers? A: The implications of this study for consumers are that they should be aware of the impact of Indomaret's expansion on the community and support small retail traders by shopping at their stores.