Indonesian law prohibits street vendors from operating on pavements, and those who cannot afford to rent shops live in constant fear of being raided by the authorities. However, the Jakarta governor is seeking to legalise street vendors in the capital, arguing that pavements can be used for more than pedestrian use and be permitted for use by street vendors.
Proponents of the governor’s proposal have argued that street hawkers provide affordable food options to those who live in Jakarta and that the legal operation of street vendors can boost the economy. They also point out that any illegitimate use by street hawkers can be managed by proper regulations
However, detractors of the proposal are asserting that the new proposal would encroach on the spaces meant for pedestrians. Furthermore, licensed business operators are also complaining that the rent-free street vendors are also competing for the same customers.
Read the full article on Channel News Asia: Peddlers versus pedestrians? Jakarta governor’s plan to legalise street vendors divides the city
Analysis:
There will almost always be winners and losers behind every governmental policy. Legalising street vendors would certainly help the illegal street vendors who are unable to rent a proper shop space and who risk losing their inventory to enforcement raids. Indirectly, it should also lead to an increase in economic growth.
However, in a country where pavements are already very disorderly and dilapidated, legalizing street vendors may encroach on the space meant for pedestrians. Besides, those who run legitimate businesses will suffer from having greater competition from the street vendors, especially as street vendors do not pay any rent and can theoretically offer lower prices.
The Jakarta governor and his allies must also be mindful that the new proposal does not flout existing laws. While legalising street vendors was one of his key campaign promises, the traffic laws bar anyone from disrupting pedestrian flow on pavements. If he ignores the legal requirements in the capital city of Jakarta, then other Indonesian cities may also follow suit.
Questions for further personal evaluation:
- If the Jakarta governor manages to push ahead with the new proposal, how can the city of Jakarta mitigate the issues associated with pedestrian flow?
- How should governments decide on social policies when there are winners and losers to every policy? Is it a question of greatest utility, or are there certain inalienable principles that must be respected?
Useful vocabulary:
- ‘encroach’: to advance beyond the usual or proper limits
- ‘dilapidated’: decayed, deteriorated or fallen into partial ruin especially through neglect or misuse