How to cite:
Riza Nuansyah Putra, Ismu Rini Dwi Ari, Christia Meidiana. (2022).
The Development of Oro-Oro Dowo Traditional Market Logistics in
the New Normal Era with Joint Delivery Approach. Journal Eduvest.
Vol 2(2): 280-285
E-ISSN:
2775-3727
Published by:
https://greenpublisher.id/
Eduvest – Journal of Universal Studies
Volume 2 Number 2, February 2022
p- ISSN 2775-3735 e-ISSN 2775-3727
THE DEVELOPMENT OF ORO-ORO DOWO TRADITIONAL
MARKET LOGISTICS IN THE NEW
NORMAL ERA WITH JOINT DELIVERY APPROACH
Riza Nuansyah Putra
1
, Ismu Rini Dwi Ari
2
, Christia Meidiana
3
Brawijaya University, Indonesia
ARTICLE INFO ABSTRACT
Received:
January, 26
th
2022
Revised:
February, 17
th
2022
Approved:
February, 18
th
2022
The growth of electronic commerce is one of the challenges
for the development of urban logistics in Indonesia. This
condition was then exacerbated by the COVID-19 pandemic,
which forced changes to the social interaction system. In
Malang City in particular, there are regulations that make
traditional markets prioritize electronic purchasing systems.
Oro-oro Dowo Market is supported by 4 service developers
who support online transaction activities. Each
development has its own mechanism for the movement of
goods according to the characteristics of the service
developer. Using a qualitative descriptive method, it is
known that additional traditional market facilities are
needed to support these activities. The spatial arrangement
of the Oro-oro Dowo Market is an initial alternative for
developing a development strategy. Then the concept of
online traditional market interaction patterns can be
considered for the development of other digital-based
activities.
KEYWORDS
City Logistics, Joint Delivery System, New Normal
Activity, Traditional Market
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Riza Nuansyah Putra, Ismu Rini Dwi Ari, Christia Meidiana
The Development of Oro-Oro Dowo Traditional Market Logistics in the New
Normal Era with Joint Delivery Approach 281
INTRODUCTION
The concept of logistics has actually been known for a long time and began to be
used frequently in the 1950s [1]. Logistics can simply be interpreted as the flow of
material, information, and money between consumers and suppliers. The development of
logistics goes hand in hand with advances in management theory and information
systems, which have more influence on business and economics. Urban logistics focuses
on the activities of transporting goods, social or environmental problems, congestion, and
energy saving in urban areas [2].
In general, the problem of urban logistics is the high cost and time requirements
of the movement of goods in urban areas. Electronic commerce offers a solution to this
problem which has been proven in several cases. Emkhe shows that electronic commerce
can shorten delivery times because it can be done anywhere and anytime [3]. In
Indonesia, the E-Commerce Statistical Report notes that 53.52% of new entrepreneurs,
dominated by the wholesale and retail sector, use digital platforms to market their goods
[4].
Technological developments have also begun to be applied to conventional
trading activities. In addition, the COVID-19 pandemic has also spurred the application
of online buying and selling activity programs in line with the enactment of social
restrictions [5]. In the 2020-2024 RPJMN, a strategy that can be carried out by the
people's market is the development of an information system that utilizes technology to
survive in the new normal. The people's market, which is a place for direct meetings
between sellers and buyers, has begun to adapt to accepting orders online (in a network).
PERWALI Malang City No. 19 of 2020 Article 24 paragraph 1 point c, contains
rules so that people's market managers facilitate and prioritize online buying and selling
transactions. As a result, there are ten people's markets in Malang City that serve online
transactions during the new normal [6]. Developers of freight forwarding services are
divided into two types of providers, namely government and private. The Malang City
Government through DISKOPERINDAG uses the Instagram application service
(Instagram Pasar Rakyat) and the website (pasar.id) as a medium for ordering.
Meanwhile, private developers such as GO-Jek, Grab, and E-Pasar have their own
applications according to the characteristics of the service. The difference in media has an
impact on the interest of buyers in buying and selling online.
Existing facilities and infrastructure for the Oro-oro Dowo People's Market are in
accordance with SNI 8125 2015. However, in order to accommodate the interests of
service developers, an appropriate mechanism is needed. Considering the number of
service developers, the joint delivery system was chosen as a logistics development
concept which involves collaboration. The shared delivery system is a core scheme in city
logistics for more efficient and environmentally friendly urban transportation [7]. The
goal is to increase the efficiency of urban goods distribution by consolidating goods from
competitive freight carriers, reducing environmental damage, reducing congestion,
improving safety and security conditions in urban areas [8].
The movement of vehicles to the people's market begins with the arrival of the
supply of goods and continues with the visit of buyers directly to the location. Currently,
the Oro-oro Dowo People's Market has been facilitated by four developers who are ready
to help with the distribution of goods. Drivers number from GO-Jek has reached 10,000.
This number has not been updated and added from Grab driver partners, e¬-pasar,
Instagram pasar rakyat and pasar.id which causes the accumulation of transportation.
Although it has been supported by several online transaction service providers,
the Malang City Government needs to consider future conditions. Nowadays service
Eduvest – Journal of Universal Studies
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282 http://eduvest.greenvest.co.id
providers in the form of category H (transportation and warehousing) are an urban
constraint with the large number of couriers operating. On the other hand, it can be said
that e-pasar or pasar.id is not ready to provide couriers for delivery of goods, which is one
of the logistics needs. Therefore, a collaboration scheme between stakeholders is needed
based on their respective needs. The joint delivery system is a logistics development
concept that will be implemented at the Oro-oro Dowo Online Traditional’s Market.
This research starts from identifying the movement of goods produced by online
transaction service providers. At this stage, a stakeholder interaction model centered on
service providers is also described. Furthermore, assessing the influence of the movement
on the space requirements of the Oro-oro Dowo Traditional’s Market. At this stage, the
courier movement of each developer in the market is also described. Finally, the
preparation of logistics development recommendations is divided into two, namely
market spatial planning and also stakeholder interaction schemes. The benefit of this
research is that it can be used as input and consideration for the Government in
developing logistics in other sectors in Malang City. Then, it can be a reference for
academics in research on urban logistics.
RESEARCH METHOD
This research on the logistics development of the Oro-oro Dowo Online
Traditional’s Market in choosing qualitative approach. The question is that qualitative
research is more appropriate to use on new phenomena whose problems are still not clear
(Sugiono, 2019). In addition, the qualitative approach was chosen on the grounds of the
limitations of the discussion of strategy quantitative analysis techniques. The qualitative
model chosen is a “case study” which develops an in-depth analysis of a problem, related
program, event, activity, process, or one or more individuals.
RESULT AND DISCUSSION
The pattern of distribution of goods is the pattern of distribution of goods from
several online service developers at the Oro-oro Dowo Traditonal's Market which is
described through tabulations and pictures. The problem in this identification is that it is
not easy to get data from application developers. Grab and Go-Jek are only willing to
provide data to the Ministry of Land Transportation as the highest organizing agency. In
other cases, Instagram Pasar Rakyat does not accommodate orders into a database. It is
difficult to know the list of customers who may have made transactions. Finally, in the E-
Pasar application, the difficulty is that the travel data is limited to the destination point
where transactions do not occur every day. Therefore, the authors conducted observations
and interviews at the research site to obtain data. The results can be seen in the
description below accompanied by a picture of the destination location.
Table 1. Delivery Destination in 1 month
Provider
Destination
Intensity
Instagram Traditional
Market
Tlogomas
Twice a day
Araya
Twice a day
E-Pasar
Ijen
2
Bareng
1
GO-Jek
Veteran
2
Riza Nuansyah Putra, Ismu Rini Dwi Ari, Christia Meidiana
The Development of Oro-Oro Dowo Traditional Market Logistics in the New
Normal Era with Joint Delivery Approach 283
Bareng
1
Grab
Syaiful Anwar Hospital
2
Based on interviews with the Pasar Rakyat Instagram courier, it was found that
the average buyer was a regular customer of Oro-oro Dowo People's Market before the
pandemic. For protocol reasons, most buyers who have middle and upper economic
abilities can afford the cost of goods and accommodation. Regular customers of the Pasar
Rakyat Instagram application are in Araya Housing and Tlogomas Housing. different
from customers from E-Pasar, GO-Jek, and Grab who place an order once without any
continuity.
Figure 1. Goods Movement Providers
Tables and Figures are placed in the text group after the table or figure is
referenced. Each image must be given an image title below the image and numbered
sequentially, followed by the first image. Each table must be given a table title and
numbered sequentially at the top of the table. Images must be guaranteed to be printed
clearly (size, font, resolution and line size must be sure printed clearly). Figures and
tables and diagrams/schematics should be placed in columns between groups of text or if
Eduvest – Journal of Universal Studies
Volume 2 Number 2, February 2022
284 http://eduvest.greenvest.co.id
they are too large they should be placed in the center of the page. The table must not
contain vertical lines. While horizontal stripes are allowed but only essential.
Before entering into stakeholder relations, we will discuss the possible scenarios.
Figure 2 explains that there will be a new service zone from online transactions. This
means that in the future the Oro-oro Dowo Traditional's Market needs to pay attention to
existing orders so that services do not overlap with other markets. In addition, vehicle
towing also needs to be considered, considering the current conditions are not as busy as
now.
Figure 2. Development Service Area Traditonal Market
The purpose of the joint delivery system is to increase the efficiency of urban
goods distribution by consolidating goods from competitive freight carriers as well as
reducing environmental damage, reducing congestion, improving safety and security
conditions in urban areas (Taniguchi, 2014). Therefore, it is necessary for the Oro-oro
Dowo People's Market stakeholder scheme to follow this approach. For more details, see
Figure 3 below.
Figure 2. Stakeholders Interaction Recommendation
Riza Nuansyah Putra, Ismu Rini Dwi Ari, Christia Meidiana
The Development of Oro-Oro Dowo Traditional Market Logistics in the New
Normal Era with Joint Delivery Approach 285
CONCLUSION
Technological developments are part of human life following the times. The
process of digitizing every aspect of human life can be seen from two sides that need to
be considered. From the study of the location, the existence of goods delivery services
has a positive impact on traders. Traders can increase transaction intensity without
expending additional energy. In addition, in the future it is necessary to improve facilities
and infrastructure that support online transaction activities at the Oro-oro Dowo
Traditional Market. And lastly, it is necessary to improve the collaboration system
between stakeholders. Local governments need to regulate online transaction service
providers so as not to cause problems in the future.
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