Perpustakaan Digital ITB

The low level of education and limited job opportunities in developing countries, such as Indonesia, result in a higher rate of employment in the informal economic sector than in the formal economy. Street vendors are an integral part of the informal sector, becoming a common phenomenon in the urban areas of Indonesia. Street vendors are believed to cause environmental problems in open public spaces. The contribution of street vendors to the local government is not proportional to the issues they cause because they do not pay taxes, unlike the formal economic sector. However, street vendors belong to an informal sector to which the government must pay attention because they are financial assets that provide jobs for low- educated people and those without special skills. This study focuses on Blora Regency, which has the lowest minimum wage level in Indonesia and a high level of informal economic activity. The study analyses strategic efforts to regulate the presence of street vendors in public open spaces, considering the rights of street vendors who contribute to the local economy from the perspectives of policymakers, street vendor organisations, and street vendors themselves. The methodology entails a mixed-methods approach, combining descriptive analysis through surveys, observation, and in-depth interviews. This is complemented by a quantitative method using multiple linear regression analysis to determine the factors that influence street vendors’ location satisfaction. The findings reveal a discrepancy between the government’s and street vendors’ preferences: while the government aims for relocation, street vendors tend to prefer staying in their current locations with improved facilities, as they claim to have legal permits to occupy the space. Furthermore, there are only four variables that influence the location satisfaction of street vendors, namely the availability of trash bins, parking areas, electricity, and the level of festivity. Finally, the policy recommendations of this research are to protect the rights and economic contributions of street vendors in Blora Regency by implementing sub-zoning in public open spaces, enhancing facilities, providing capital assistance, training, branding, and strengthening place identity without forced relocation. These efforts should be supported by routine supervision and administrative regulation to improve vendor satisfaction, boost local revenue, and preserve the cultural character of Blora.