Informal Contracts among Street Vendors Around Trunojoyo Park, Malang City

Abstract

Malang City has great potential in tourism, education, trade, and services, which encourages rapid development and attracts many migrants. As a result, there is an increase in informal sector activities, especially with the proliferation of street vendors (PKL) that utilize public spaces. The presence of street vendors in public spaces creates inconvenience for some communities as it degrades the quality of urban open spaces. Trunojoyo Park, which functions as the city's lungs and an educational tourist spot, has also become a location for street vendors. This phenomenon occurs because of an informal contract between the security forces and the street vendors, allowing them to continue selling without official permission. The contract involves the payment of land rent as security money to avoid eviction. This research uses informal contract theory and qualitative methods with a descriptive approach. Observations showed that the trading area in Trunojoyo Park is divided into East and West areas. Based on interviews, prospective street vendors must seek information about the trading area and the rents that control the area. In the East area, traders pay a daily deposit of Rp. 5,000.00, specifically every Saturday there is an additional fee of Rp. 5,000.00 for cleaning. Vendors who do not sell for more than two months without a clear reason will be blacklisted. Selling time in the East area is limited from 5pm to 6am. Meanwhile, in the West area, vendors pay an annual deposit of IDR 2,000,000, which can be paid in installments three times a year. Although the annual deposit is higher, traders in the West area are not bound by a contract and can sell 24 hours. This gives them an advantage because the area is crowded with children who attend extra lessons during the day. This research reveals how informal contracts regulate street vendor activities in Trunojoyo Park, with differences in systems and benefits between the East and West areas.