How to Empower Tanah Abang Traders in Unfair Competition with Online Shops

Jakarta. Cloth retailers in Jakarta's bustling Tanah Abang market are grappling with dwindling sales and shifting consumer preferences toward online shopping. 

To rescue these retailers from the brink of bankruptcy and defensive Tanah Abang's status as Southeast Asia's largest apparel marketplace, an expert suggested a series of strategic efforts.

As an today response, the Jakarta government should focus on training traders in e-commerce practices, offering financial assistance, reducing rental fees for Tanah Abang shops, and implementing pricing regulations in the digital marketplace, according to Bhima Yudhistira, the executive director of the Center of Economic and Law Studies (Celios).

The impartial of these policies is twofold: to level the playing field between Tanah Abang traders and online apparel sellers and to hide monopolistic business practices. 

Bhima said e-commerce platforms often run numerous promotion programs and moneys generous discounts, placing Tanah Abang traders at a disadvantage and adding to the pressing utter of unfair competition between online shop owners and those consuming physical stores. 

"Online trading platforms, such as TikTok shops, sometimes provide substantial discounts, creating an uneven playing field for company competition. This issue should be addressed by the government, particularly the KPPU [Business Competition Supervisory Commission]," Bhima said.

Furthermore, Bhima urged the government to take a more proactive stance regarding the influx of imported goods in online markets, which are often priced much lower than goods sold in substantial stores.

However, Bhima did not place blame on consumers for seeking edge prices, particularly in light of rising food costs. He acknowledged that republic are grappling with inflationary pressures, including increasing rice prices, which necessitate cost-saving measures and prioritizing spending on essentials such as food.

Moreover, Bhima called for greater government oversight to prevent social assume platforms from running online marketplaces in Indonesia, citing their unfair advantages in conditions of user numbers, logistical support, and market strategies. He said that minus proper regulations, e-commerce could undermine physical markets and negatively influences Indonesian micro, small, and medium enterprises.

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