Proceedings of the 2ndAceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, ,

Street Vendors Resiliencies: The Role of Social Capital and Community Governance

1Andy Arya Maulana Wijaya, 2Lia Hanifa, 3Hastuti Hastuti, 4Lilis Maryasih 1,2,3Universitas Muhammadiyah , Indonesia 4Department of Accounting, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia Correspondence author: [email protected]

Abstract - This study aims to assess the social capital capabilities of the Street Vendors in several places in Baubau, as a means to understand and input policies for structuring and empowering that is oriented to the capacity of the community. The general view of this group is still oriented about quantity and how to contribute to retribution, but the capacity of the street vendor community can become a form of community contribution in improving regional competitiveness. The results of the analysis suggest that the social capital capabilities of street vendors can be observed in their interactions in groups. Some elements that describe social capital such as trust, collective rules, and networking with the other groups. However, this study is aware of weaknesses in leadership that have not been able to become an effective group liaison with local governments. Keywords - Social Capital, Street Vendors, Community Governance

1. INTRODUCTION As a city of trade and services, the socio-economic movement of Baubau is characterized by a lot of trade and service provision. One of them is the presence of Street Vendors who participate in contributing to the hustle and bustle of the city. On the other hand, the development of street vendors quantity also often follows the growth of urban public spaces. For the city of Baubau itself, which has several popular public spaces, as well as concentration areas for street vendors activities, include the Pantai Kamali, Kotamara, Bukit Wantiro, and Pujaserata. But along with its development, street vendors in several publications regarding their condition are often described as traders who do not have a fixed place, fill public spaces, the number of which is booming every day, the existence of land sabotage, up to the unattractive issues of city security and aesthetics. Finally, in the Peraturan Daerah Number. 3 Tahun 2015 About the Arrangement and Empowerment of street vendors, this sector is only about data collection and spatial planning. As part of the community, street vendors certainly also have such capacity as a process of interaction that they do. It is still often found that the dynamics that occur with street vendors, make this group so vulnerable. Structurally, evictions, neglect, stereotypes disrupt the beauty of the city, as well as culturally, namely unhealthy competition, conflicts between traders, and limited access to capital. With this phenomenon, it does not mean that street vendors do not have a positive contribution to development. Even though it is only based on small businesses, street vendors can at least be able to provide employment and become one of the sources of retribution for the income of a region, whether it comes from parking, cleanliness retribution, tourism promotion, and as an informal economy that survives. Social capital in this study was chosen to be studied more deeply, due to the assumptions that emerged in the policy and empowerment of street vendors only as a disciplinary process. That way, street vendors are often seen as a business group that is weak and not so important in the city's development structure. Whereas in several other cities, for example, and show street vendors as a regional economic driver and become an icon of regional tourism. This study aims to explain the capabilities of the social capital of the Baubau street vendors, as well as the potential that can be used to maximize these capabilities.

2. THEORETICAL FRAMEWORK However, in the previous study, the dynamics of the street vendor community at Pantai Kamali Baubau, stated that merchant social capital was sufficient to enable the existence of independent community action in empowering their communities, this seems to be observed in the element of social capital of the trust merchant community. regulate and the existence of cooperation in the economic activities it carries out (Wijaya, 2017).

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Andy Arya Maulana Wijaya, Lia Hanifa, Hastuti Hastuti, Lilis Maryasih

Long and intense interactions in the street vendors community, certainly in line with the indications of the existence of built- in social capital, have economic value for the development of the community itself. In a study of this role, it was stated that through social capital the community was able to provide public services that the government had not been able to provide. Through the use of social capital such as trust, networking, and community collaboration, it is the basis for developing community communities (Bowles and Gintis, 2002; Sudarmo, 2006; Suharto, 2008; Wijaya, 2014). In connection with this study, social capital it is assumed that communally the community can use its resources to develop optimally. Social capital can be interpreted as resources that arise from the interaction between people in a community (Suharto, 2011: 97). Sudarmo (2008) sees community governance as a form of community activity to fulfill their various interests, by cooperating with both their communities and with various other parties. In line with that, Bowles and Gintis in their Journal of Social Capital and Community Governance said that Social Capital, in general, is often associated with trust (trust), the business about the organization or association, willingness to live with the norms of trust that exist in a community and punish those who do not heed these norms (Bowles and Gintis, 2002; F419). Innes & Booher quoted in Sudarmo (2008: 104) explaining that to see how community governance is, it is also necessary to look at the community from Quality possessed by members who form their community and Quality of the community or organization itself. By referring to several conceptions of community governance, and the scope of work of the concept. The capacity of social capital owned by the PKL community certainly provides another perspective or reference in the formulation of public policies in the region. 3. RESEARCH METHODS This study uses a type of case study approach. Creswell (2010: 20) understand case studies as research that investigates a program, event, activity, process, or group of individuals. In determining the informants, purposive sampling was used through key persons who were also assisted by snowball sampling, as the need to find specific characteristics of the research phenomenon and to obtain more relevant data. 4. RESULTS AND DISCUSSION Profile Street Vendors in Baubau In looking at street vendors in the city of Baubau, the market is certainly a keyword to understand this. Until now, the market which has the largest and continuous trading concentration is in 3 markets consisting of Central Market as a Wameo and Karya Nugraha. Street vendors are always identified with the location. As a commercial business that is defined based on a location, it is not uncommon for street vendors to always be associated with public space somewhere. To examine the community profile of street vendors, it will always be related to the location of the street vendors. There are four favorite locations by residents of Baubau City as well as being one of the tourist destinations namely Pantai Kamali, Pujaserata, Kotamara, and Wantiro. From this location, there is a concentration of street vendors with a considerable amount. This study noted that there were 361 traders in 4 locations, with each location divided into several groups. The classification of the types of merchandise sold by these traders are also quite varied, for example, food, drinks, accessories, children's toys, electronic devices, and others. However, it should also be recognized that this number is still very dynamic because in certain locations it has the flexibility of receiving new traders. The amount of sword that is quite large, coupled with the capability of social capital that it shows, the community of street vendors can be actively used by the government in efforts to organize and empower it.

Social Capital Capability: Street Vendors in 4 Location Like the community, street vendors who have interacted for a long period and in a region, of course, social capital will form the basis of interaction and group formation. To assess the capabilities of social capital, experts relate it to the values of trust, cooperation (network) and norms which become the basis of the relationship between the community informally and develop within the community along with the social interaction it does (Putnam, 1996; Fukuyama, 2010; Bowles and Gintis, 2002; Sudarmo, 2011: 197-198; Hasbullah, 2006: 9; Suharto, 2011: 98-100). That way, to describe the activity shown by the street vendor group in several locations in Baubau City in this study, it can be mapped the working model of social capital in the community or group. As with the collective aspect, social capital concerns relationships, leadership, network cooperation (network), and Trust. Through this community, it then becomes a forum for group traders to exchange knowledge, manage organizations to face challenges both from within and from outside the street vendor community itself. The capabilities of the social capital of street vendors in the four locations that are the focus of this study can be seen in the following discussion:

Table 1. Component of Social Capital of street vendors in Baubau Component of No. Activity Information Social Capital a. Trust the leader, help each other between Several groups do traders 1 Trust not have group b. Mutual trust through Arisan leaders. c. Mutual Aid Between Traders

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Proceedings of the 2ndAceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia

a. Rules of location, sales, lighting, and security b. Shift Rules Sales Schedule, Rules for Using 2 Norms Lights c. Rules of Cleanliness, Rules of Place of Sale. a. Collaboration with the local government 3 Networking b. Provision of security guarantees

From the table above, it can be described that the social capital capability shown by the Baubau City street vendors group is observed in the components of Mutual Trust, Norms, and Cooperation. Social capital that takes place by the existence of interactions and activities that are long enough in each location. It's just that there are, the conditions that characterize the difference between each group are the existence of informal leaders. The true leader does not manifest in a chairperson, but leadership is observed in the legitimacy of someone given by the group to advocate for the interests and organize the group. This also makes some policies regarding street vendors at the research sites, often not channeled properly to stakeholders in the region. On the other hand, the condition of social capital seen in this study allows for a policy approach regarding community-based street vendor structuring and empowerment. Even though this research does not deny if the conditions of street vendors at the research location cannot fully describe the general reality of the conditions of the interaction of street vendors' social capital in the city of Baubau. However, the location of street vendors concentration in this study can be used as a barometer in dealing with street vendors in Baubau City, given that the area is also a concentration of visitors and tourist destinations in the City of Baubau.

5. DISCUSSION Community Governance Through Strengthening Social Capital: Future Of Street Vendors Looking at the conditions described earlier, this study believes that the capability of social capital that takes place in a group is faced with conditions that are indeed unpredictable. The reality of social capital shown by street vendors groups in general in this research becomes a way of looking at observing activities that take place in the Street Vendors group. This allows for the means to organize and empower street vendors' productivity to group welfare and the development of this sector by the local government. It is understandable that the interaction of street capital social capital groups, such as mutual trust between traders, lending and borrowing, selling area arrangements, commodity distribution selling in one place, group leadership to managing conflicts that occur between communities or to government policies. Indeed, it can provide positive input to local governments to develop this sector for the regional economy, which is certainly by utilizing the social capital capacity observed in this study. Observing these conditions, in a community governance setting as an approach that can be used to organize and empower groups of street vendors in Baubau. McKiernan and Lasker (2000; in Totikidis, Francis and Amstrong, 2005) provide definitions of community governance as a form of collaboration. This is the basis of acceptance of the complex issues faced by communities that cannot be solved by one person or one sector alone but require collaboration. While Sudarmo (2008) sees community governance as a form of community activity to fulfill their various interests, by conducting various collaborations both with their communities and with various other parties. By not dividing each zoning used in the analysis of this study, the total number of street vendors as a whole, amounting to 361 traders, is quite potent in the perspective of regional economic policy. However, it should also be recognized that this number is still very dynamic because in certain locations it has the flexibility of receiving new traders. The amount of sword that is quite large, coupled with the capability of social capital that it shows, the community of street vendors can be actively used by the government in efforts to organize and empower it. This study considers that the collaboration scheme by utilizing the social capital capacity of street vendors can be a reference in the formulation of community-based and more transparent and participatory street vendor policies, not just like the existence of street vendor rules in the current Baubau Regulation. The social capital capacity of the trading community is not only a collective value but also has productive value. In the sense that the belief system, norms, and cooperation that are the basis of the social capital of traders, have a stake in the collective arrangement of the economic activities they carry out (Wijaya, 2017). On the other hand, trust and networking in the Street Vendors group can be useful to improve the welfare of traders, namely the fulfillment of the minimum needs of traders who in the long run ensure the survival of traders (Handoyo, 2013). Whereas what is displayed by the street vendors in Baubau is also influenced by the policies of the local government that have not fully taken sides with this group. But on the other hand, this study examines that these capabilities lead to the management of groups independently by street vendors themselves. However, the leadership role that has not been optimal has resulted in a pattern that is not yet sufficient enough to give up management of the area to street vendors group. For this reason, the presence of regional governments as holders of public policy power is very necessary. Regarding such conditions, Mustofa (2012) suggests that networks, norms, and forms of trust that play the most role are friend networks, location mastery norms, and forms of trust in-group members play an important role. For this reason, this study does not deny that the role of group leadership will greatly influence group continuity, the level of group participation to norms that can be fully implemented together in groups. This relationship is in line with Siregar's study (2010) which states that in the

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Andy Arya Maulana Wijaya, Lia Hanifa, Hastuti Hastuti, Lilis Maryasih structural aspect, the relationship between members and the association turns out to be an important force as a basis for the daily lives of street vendors. Observing the processes taking place in street vendors in Baubau does provide a quite different picture, this is also influenced by the heterogeneous background of traders. So that social capital as an interaction in the community cannot be observed as a result of cultural movement by traders. It's just that, intense interactions that take place over a long period make the capacity of social capital to form in independently formed communities. Supporting this, Francis Fukuyama (2010: 36) says that communities depend on trust, and trust is culturally determined, then spontaneous communities will appear at different levels in different cultures. This is supported by the existence of several common rule norms that are built at the same time supervised together in groups. It's just that this norm is found more to be an unwritten rule but still has the influence to remain obeyed by the group collectively. Community communities such as the street vendors of Baubau community in this study became an informal part of governance as an interesting study, both for public administration and public policy. Ife and Tesoriero (2008: 36) explained that communities as a collective community were chosen by citizens to be formed as a way of achieving their interests. Besides, the strengthening of this discourse by Bowles and Gintis (2002) also revealed that the presence of the community as a form of good governance in the administration of government. Community participation in development is seen as a form of community capability, not only in the presence of community meetings or development meetings in the region. Another problem is that in 2016, there was a discourse that there was a third party in the management of one of the street vendors' locations, the Kamali Beach Area. This policy then invited negative reactions from traders, because the third party who would later arrange the activities of selling in the area was not from the merchants and did not know the dynamics that had occurred in the Kamali Coast area and the traders inside. Besides, the street vendors community also faces several problems such as the frequent occurrence of inter-community conflicts, which has implications for the environmental security conditions of street vendors community activities. Whereas the regional government has not seen street vendors as part of the productive economic endeavor of the community, but also social conditions that can help the government in structuring and empowering this group more broadly in the Baubau. However, this study also considers the capacity of the social capital of street vendors in the city of Baubau to have weaknesses inherent in it. Like for example group leadership, financial capacity, and community resources that are still not optimal, the role of street vendors is more appropriate to be seen as complementary with the state and market rather than as a substitute for two other social arrangements (Sudarmo), 2008; 101-112). The community governance narrative of the study in this study departs from the capability of the social capital of the street vendors community in Baubau, which can be observed as follows: 1) Trust, which in practice can build optimal social capital bonding for trading activities of traders in each location studied. Besides, with this support, traders can build mutual assistance in capital lending to develop other traders' businesses; 2) Common norms or rules made by merchant groups, with this arrangement at least the bridging of social capital is established between group members and members outside the group. This also makes the street vendors community flexibility towards new traders quite large, but still within the framework of the joint rules that have been made before; 3) Networking, which is built by street vendors community on parties that can support the activities of traders, with cooperation such as that traders can create maintained cleanliness and security and order that are always created. However, still, a weak point of this condition is the leadership that has not been able to build good social capital linking especially for local governments to guarantee the interests of traders who can be well accommodated in the policy. The capability of social capital is indeed quite casuistic to be able to summarize reality as a whole, not to mention also the conditions shown by the street vendors community in Baubau. On the other hand, this research recognizes besides the reality described above that in some cases related to the provision of services that cannot be provided by street vendors independently. In line with this, Totikidis, Armstrong, and Francis (2005) state that the process of community governance requires collaboration and the composition of social capital components, namely networks and the role of stakeholders. Through this relationship, it is expected that the street vendors' community capability and local government policies will be strengthened based on positive relations in the form of collaboration. Until in time the central role of the government will directly decline, and shift to become work partners and facilitators through a form of joint governance arrangements (Raharja, 2009). However, the capability of social capital by this street vendor group needs support to be sustainable. Therefore, the form of support is not only carried out through public policy and its arrangement but also empowerment that enables the involvement street vendors of Baubau in decision making, as well as building a network for the development of a community-based creative economy in Baubau. 6. CONCLUSIONS The results of this study suggest that there are street social capital capabilities that can be observed in the interaction of traders in the group. Some elements that illustrate social capital such as trust between traders in the form of mutual trust, mutual assistance with capital and social gathering, while the collective rules (norms) created are observed through the existence of collective rules in the division of regions, electricity regulation and management of commodities and time sell. And for networking partnerships in the form of cooperation in the provision of cleanliness and security. However, this study is aware of weaknesses in leadership that have not been able to become an effective group liaison with local government. This study recommends that there be a change in regulations regarding Street Vendors through the revision of Peraturan Daerah Nomor 3 Tahun 2015 about the Arrangement and Empowerment of Street Vendors, where empowerment is based on strengthening institutional capacity and group competitiveness. In addition, a collaborative scheme is needed in strengthening

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Proceedings of the 2ndAceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia the capacity of street vendors community with a creative economy, so that the existence of these groups can stimulate economic growth and tourism in Baubau.

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