Humane Relocation and Empowerment Street Vendors

Background Information

Surakarta city had problems with street vendors in almost every corner of the city. Such disorganized locations caused inconvenience and sanitation problems, traffic congestion, diversion of land functions, and discomfort. About 5,817 street vendors were spread throughout the city.

Since Mayor Joko Widodo was elected in 2005, his main policy has been to restructure the operations of street vendors under the concept of humane empowerment. His initial concern about the chaos that disorganized street vendors had brought to the streets of Surakarta gave him the idea that these vendors, if empowered, could increase the economy and improve the region’s fiscal capacity. 

Goals of the Initiative

The goals of the initiative:

•Increase relocated street vendors’ income;

•Turn the relocated street vendors from illegal vendors to legitimate merchants and kiosk owners at the market;

•Transform areas which were formerly occupied by street vendors into green open spaces for the public and make them fit for habitation;

•Increase the region's revenue collection.

Parties and Partners to the Initiative and Resources Used for Implementation

To launch the relocation and empowerment program for street vendors, Mayor Joko Widodo activated The Regional Government Working Units. Among these regional government units are the Market Management Department, Sanitation and Park Department, Public Works Department, Information and Communication Department, District and Sub District Office and City Government Police Unit.

The mayor and local government also took a number of measures which allowed the participation of the Regional Parliament, Regional Management, vendors, vendors’ association, NGOs, media, and public figures.

The resources used for implementing the initiative include:

The financial resources used for implementing the initiative come from the city’s Local Annual Budget and Corporate Social Responsibility spending.

Innovation for the Initiative

The initiative should be considered revolutionary because it has been done with great consideration of the local culture and humane methods that have never been tried before by others regions. Non-humane and repressive approaches were implemented in the relocation and empowerment of street vendors from other regions.

The relocation and re-arrangement is being applied with humane methods and great consideration of the local culture. The local government convinces the street vendors that these efforts will improve their condition, that there is no re-arranging without offering an alternative, and that the re-arranging is not meant to eliminate their businesses.

The innovation was not inspired from other experiences but it’s inspiring to see other cities replicating this innovation such as Pakkret city, Thailand and Choam Chao Sangkat, Cambodia. This innovation won best practice award for street vendor management in South East Asia from DELGOSEA (The Partnership for Democratic Local Governance in Southeast Asia by the European Commission). 

Obstacles and Solutions for Innovation

There were many obstacles to implementing the innovation. The obstacles were the street vendors’ opinions that the re-arranging meant no offering of an alternative site, thus eliminating their business. However, the local government convinced the street vendors by inviting the street vendor’s association to several luncheons and informal meetings at the official residence of the mayor. The luncheons and informal meetings were only meant to open communication lines between the parties. The mayor used these occasions to convey his government’s commitment to supporting the informal economic sector. During the conversations, the mayor and the vendors also expressed similar interests in the development of Surakarta city and in ensuring all its residents can access good living conditions in the city. Fifty-six informal meetings were recorded before the local government and the vendors reached an agreement on the relocation process. It has succeeded in improving the street vendors’ awareness of the next relocation programmes.

Outcomes and Assessments

Outcomes achieved are as follows:

•The percentage of street vendors who had been relocated from the total number of street vendors in Surakarta city is 66.72 percent (2012).

•The percentage increase of street vendor's daily income after the relocation is 500 percent.

•An upgrade in the relocated street vendors’ status from illegal vendors to legitimate merchants and kiosk owners at the market.

•The transformation of areas which were formerly occupied by street vendors into green open spaces for the public.

•Two new markets as relocation sites for street vendors were built by Surakarta City Government.

•Two hundred tents as small shops, 9 shelters that can accommodate 600 vendors, 240 carts, and temporary sales time-slots available from 6 p.m. to 5 a.m. the following day and also from 6 a .m. to 6 p.m.

•The percentage increase of the region's revenue collected from the street vendors after the relocation is around 90 percent.

•The initiative and its outcomes contributes to the reputation of the city. It has proven that many regions want to replicate and adopt our project. This initiative also achieved the best practice award on street vendor management in Southeast Asia from DELGOSEA (The Partnership for Democratic Local Governance in Southeast Asia by the European Commission).

Assessments are as follows:

•The percentage of street vendors who have been relocated from the total number of street vendors in Surakarta City;

•The percentage increase of street vendors’ daily income;

•The percentage increase of the region's revenue collection from street vendors after the relocation.

The Market Management Department is doing the measuring by collecting data through the survey.

Methods Applied

The local culture with non-repressive and humane methods were developed or applied to improve the chances of attaining the desired outcome or change. The methods were taken by the local government to develop partnerships and consensus, and to improve the street vendors’ understanding of regional policies. The humane method was applied to synchronize perceptions between the street vendors and the local government through inviting the street vendors association to several luncheons and informal meetings. Non-repressive methods were applied to relocate the street vendors away from the area formerly occupied by street vendors to the new location.

Benefits to Other Cities

Solo is a city in Indonesia. It is specifically located in Central Java and still preserves the local traditions and cultures. Solo city is a unique one; it has different attractions from other cities around the country. It has now developed into an advanced and modern city, but still clings to its native culture. Solo was once dubbed the city with the best urban development among other cities. The is due to the fact that the mayor of Solo, Jokowi, has successfully managed to build and organize the city’s infrastructure to a high standard.

The project focused on the concentration of retail dealers (STREET VENDORS) in a number of places around the city, in which they had built up their stalls in public places in a disorderly manner. Their behaviors disturbed the environment and traffic, antagonized the public and reduced green space, plus they were illegal. Identical to Banjarsari 1945 Monument, a quantity of existing retail dealers around the area has made the monument a disturbing sight and altered the main function of the site. On the initiative of the mayor, the location has now been relocated to a more suitable site and is much better organized, so it now looks tidy and modern around the Semanggi area of the city.

The relocation initially reaped many pros and cons. Several retailers refused the rearrangement with a variety of considerations. But with the persistence of Mayor Jokowi, they were invited to an open banquet several times to discuss the matter, in order to come to a joint decision. And at the end, they voluntarily decided to be transferred to the place that had been prepared earlier by the city of Solo, which is in the clover.

The relocation involving 987 street vendors proceeded very well. Without any interference, both citizens and the vendors welcomed it with enthusiasm, and it was even recorded in the MURI (Indonesia Museum of Record). As a result, the Monument of Banjarsari 1945 now functions properly, as a city park, a green space, as a recreation facility, a gym and a historical site.

The positive outcomes for the rearrangement are now being experienced by sellers and residents alike. At the moment, the market is crowded and has developed further with a wide range of products offered. And on top of that, Solo has turned into a clean and tidy city, filled with conveniences in every nook and cranny of the city.

This great achievement has made Solo a best practice city for others to emulate all over Indonesia in the management of street vendors. Solo has managed to solve this problem intelligently and peacefully, setting an example for the rest of the country.