Abstract
The modern retail industry has grown rapidly in Indonesia for the last decade. The business growth on one side, it also caused tighter competition among suppliers in the industry in order to be able to access the modern retail networks, as well as the possibility of sacrificing the traditional retail, especially small and medium scale enterprises (SMEs). Although the government has created regulatory framework that is aimed to maintain profitable business for both traditional and modern market, and to increase the local business participation in modern retail through partnership program, the issued that has been occurred is that most traditional retailers have difficulties in expanding their market to modern retails. By using the descriptive analisys, the research is carried out to reqognize some terms and conditions that has been determined by modern retails to their become supplier, the factor analisys that are to the profit margin for both modern and traditional retailers. Meanwhile Analytical Hierarchy Process (AHP) is used produce draft of policies and procedures mechanisms in order enhance small medium enterprises access to modern market. Some recommendation from the research is increasing standard quality of local products and lessen the trading terms, specially that could bring disadvantage to the traditional retailers as stated in Presidential Decree No. 112/2007.
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