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Structuring Models and Characteristics of Informal Sector Traders in Indonesia (Case Study in Informal Sector Jakarta City, Indonesia)

Author

Listed:
  • Sri Hartati
  • Edwin Karim
  • Kartib Bayu

Abstract

Socio-economic aspects that occur in urban communities to create activities that are formal and informal that is the dualistic nature of the urban. Formal activities often associated with activities performed by the people in the middle class and above, while the informal nature of activities carried out by community group lower middle class or the marginalized. Urban dualistic also featured in the historical evolution of the modern sector and the traditional sector is dualistic technology. The problems posed by urban dualistic phenomena are often caused by the immaturity of the planning and supervision of construction in all parts of the city where this dualistic condition often develops itself spontaneously, unplanned and illegal. One of the problems arising in connection with the dualistic model of the labor market in the urban informal sector and the use of the term formal sector, street vendors (PKL) is likely to be the type of work that is important and relatively typical in the informal sector. Indonesia experienced economic downturn or economic crisis in 1998 the economic crisis resulted in good economic burden of community, government and private sector so that the towering including private cause limiting the number of employees with layoffs (layoffs). The economic burden society spiraling out of control resulting in the community looking for their own jobs in the informal sector to select, because the government is not able to overcome it with the community to accommodate retrenched workers in the formal sector. Choices made by the society be one with the informal traders as assessed requires little capital and skills. Unwillingness of society in a state of uncertainty, political stability is shaky, the goods of daily needs such as food prices soar resulting purchasing power declined, unemployment increased while time goes on and needs to be bought, then open their own jobs by becoming a trader informal community considered as an appropriate solution, although not necessarily in sales turnover and relatively small, but it can ease the burden of life. Methods Comparative research is a descriptive study. Choices made by the society be one with the informal traders as assessed requires little capital and skills. Unwillingness of society in a state of uncertainty, political stability is shaky, the goods of daily needs such as food prices soar resulting purchasing power declined,increased unemployment while time goes on and needs to be bought, then open review their own jobs by becoming a trader considered as an informal community solution, although not necessarily in sales turnover and relatively small, but it can ease the burden of life. Methods comparative research is a descriptive study. The results showed the characteristics of informal sector traders largely based on the age-old 15-54 years. The level of education pursued most primary and secondary school graduates. Background informal traders most of Informal Traders Become reason.business activities, ranging from early-afternoon (9:00 to 16:00), afternoon-evening (16.00-00,00) and all day (24 hours). Most informal traders do not have the permission to conduct business. The amount of capital 1 - 5 million dollars. Capital sources used are mostly using their own capital.

Suggested Citation

  • Sri Hartati & Edwin Karim & Kartib Bayu, 2015. "Structuring Models and Characteristics of Informal Sector Traders in Indonesia (Case Study in Informal Sector Jakarta City, Indonesia)," Journal of Social and Development Sciences, AMH International, vol. 6(1), pages 24-31.
  • Handle: RePEc:rnd:arjsds:v:6:y:2015:i:1:p:24-31
    DOI: 10.22610/jsds.v6i1.832
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