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The purpose of the study was: (1) to identify the actual conditions of traditional markets and SMEs as well as knowing the problem, as the reference to optimize the function of the traditional markets in West Kutai District, and (2) to develop and formulate plans that need to be done by the West Kutai District Government to optimize traditional markets and SMEs in order to compete in the modern market sotuation. Location of the study are the traditional markets and SMEs in West Kutai District. The research was conducted for 6 (six) months commencing from preparation to completion of the final report. Method of data collection conducted by an individual interviews, field observation, and literature review. The data were analysed using qualitative and quantitative descriptive analysis. The results showed that: (1) Actual conditions of traditional markets in the West Kutai District, namely in each sub-district there is more than one traditional markets; types of goods sold is a basic necessity goods (groceries) and other secondary stuff; Average traders are still having difficulties in accessing capital; trader average income ranged between Rp175,000,00 up to Rp1,150,000,00; (2) The actual conditions of traditional markets by buyers perspective found: relatively favorable for market security; hygiene markets are relatively dirty; quality of the goods sold is quite good, but the parking fasility is still inadequate; (3) The reason traders selling as street vendors, among others: the movement more freely; merchandise more in demand; they have not plot in the permanent market, and not burdened with a variety of retribution; (4) Traditional market conditions in particular that traditional markets have grown by itself in general still appear dirty, and do not meet the needs of merchants and buyers; (5) Coaching that has been done by the relevant agencies are: the development and marketing of red dragon fruit, exhibition and promotion of MSMEs products, training and development; (6) Synergy the traditional market and SMEs for improving and strengthening the local/village economy.
Kata kunci: pasar tradisional, UMKM, ekonomi lokal
