Economic Resilience Of Street Vendors In The Era Of Rupiah Depreciation: A Theoretical Conceptual Study Of Informal Economics
Keywords:
economic resilience, street vendors, rupiah depreciation, informal economy, microeconomic adaptationAbstract
This study examines the economic resilience of Pedagang Kaki Lima (PKL) or street vendors during rupiah depreciation in Indonesia's informal economy. The research aims to explain how depreciation pressure affects PKL resilience and identify the mechanisms through which this relationship operates. Using a mixed-methods approach, the study combines quantitative analysis (120 PKL respondents: 60 from UNNES Semarang, 60 from Mojokerto) with qualitative data (12 interviews, participant observation, document analysis, and one Focus Group Discussion). Quantitative results show that rupiah depreciation pressure does not directly reduce PKL economic resilience (β = -0.08, p = 0.342), but instead influences resilience through three intervening variables: informal economy adaptation (r = 0.42, p < 0.001), microeconomic adjustment (r = 0.38, p < 0.001), and social capital (r = 0.35, p < 0.001). Social capital is the strongest predictor of resilience (β = 0.38, p < 0.001), followed by informal economy adaptation (β = 0.31, p < 0.001) and microeconomic adjustment (β = 0.27, p = 0.002). The regression model explains 48% of variance in PKL resilience (R² = 0.48, p < 0.001). Qualitative findings reveal that PKL respond to depreciation through price adjustments, early purchasing, product diversification, and collective strategies such as rotating savings groups and bulk purchasing coordination. PKL in UNNES Semarang demonstrate significantly higher resilience (M = 3.58) than Mojokerto PKL (M = 3.26, p = 0.002) due to better market conditions and organized vendor structures. The study concludes that PKL resilience during currency depreciation is a multi-dimensional process shaped by adaptive behaviors and strong social capital networks. These findings support social capital theory and extend informal economy theory by demonstrating that group-based resilience mechanisms are more critical than individual strategies in informal settings.
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