Development of Local Resource-Based Rural Markets in Increasing Competitiveness

In the current era of globalization, the rural market is still the main container for the sale of staple products produced by medium, small and microeconomic actors, especially in rural areas which are mostly local products. The success of rural markets is highly dependent on the extent to which local communities own and manage businesses in these markets, therefore the development of rural markets must be accompanied by the development of local capacity. The village government in collaboration with the village community established a village market, among others, to facilitate the buying and selling activities that exist in the region, developing existing potential, and increasing the needs of the community. Rural markets are also expected to have a significant role as a growth center in economic development in rural areas. Therefore, the village market can be used as a generator to support the economic activities of the surrounding area. The development of rural markets as a center of growth will stimulate regional economic growth which will also be followed by the development of wider areas.

Rural market locations should be developed in villages that have local potential and adequate market access based on considerations:

1. Business location has access to products/services,
2. Clear relationship between business development opportunities and sources of raw materials for local products to be developed,
3. It must ensure that project benefits are distributed evenly over a wider area, and
4. Support from relevant stakeholders especially the village government and the local government above it.

The general objective of this study is to provide direction to accelerate rural market development in the context of increasing competitiveness. Meanwhile, the specific objectives are:

1. Assessing rural market performance;
2. Assessing available local resources that can support the development of rural markets more quickly;
3. Develop a format for managing rural market based on local resources;
4. Making recommendations for improving the performance of resource-based rural markets.