Correspondence to dijan_rahajuni11@gmail.com Received: May, 2019 Accepted: June, 2019 Published: June, 2019 JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI Vol. 21, No. 2, 2019, pp. 34-41 Published online in http://jos.unsoed.ac.id/index.php/jame ISSN: 1410-9336 / E-ISSN: 2620-8482 INTRODUCTION The employment structure consists of formal and informal sector workers (Yustika & Erani, 2000), informal sector absorbs more workers than formal sector. This is not only due to the limitations of formal sector in absorbing workers, but also the limited ability of the productive age population to enter formal sector job. Formal sector requires formal education as the main requirement to be able to enter employment, while informal sector does not require formal education requirement. Based on data from the Central Bureau of Statistics (BPS) in 2017, during 2015, 2016 and 2017 the Indonesian population aged 15 years and over who work by status of main employment, the formal sector absorbed an average of 42% of the workforce, while the informal sector absorbed an average of 58% of the workforce. Table 1. Percentage of Working Population Aged 15 Years and Over by Status of Main Employment in Indonesia in 2015-1017 Employ ment Year Aver age 2015 2016 2017 Formal Sector 42.15 42.05 42.30 42.17 Informal Sector 57.85 57.95 57.70 57.83 Total 100.00 100.00 100.00 Source: BPS 2017, processed data The same condition occurs in Central Java Province where the absorption of formal workers only reaches 39.71 percent and the absorption of informal workers reaches 60.29 percent, as well as in Banyumas Regency as one of the 35 Regencies in Central Java Province, the absorption of formal workers reaches 30.81% (213,650 people) and the absorption of informal workers reaches 69.19% (479,690 people). The development of informal employment in the economic development of a country is not a bad thing, but rather is an alternative for the working age population to be able to empower themselves to carry out productive Contribution of Income, Equitable Income and Welfare of Street Vendors’ Family at Sunmor GOR Satria Market Purwokerto by Gender DIJAN RAHAJUNI1, ABDUL AZIZ AHMAD2, MUHAMMAD AMMAR ALLAM3 1,2,3Economic Development Department, Faculty of Economics and Business, Universitas Jenderal Soedirman, Indonesia Abstract The existence of the Sunmor GOR Satria market is able to increase economic activity as indicated by the large number of street vendors (pedagang kaki lima/PKL). What motivates the street vendors to run their business is certainly to increase their income to improve their welfare. The more the number of street vendors with identical goods will certainly increase competition among them. This study aims to find out and analyze the contribution of income, distribution of income and welfare of the street vendors as a whole and based on gender. The results of the study state that the overall street vendor income in the Sunmor GOR Satria market contributes to the moderate level of household income, the level of income distribution among the street vendors is in the very uneven category and most of their lives have not been prosperous. Based on gender, the contribution of female street vendors’ income to household income is higher, but the level of income distribution is more uneven compared to male street vendors, and the majority of both of them have not been prosperous. For this reason, it is necessary to improve the management of street vendors, especially in location layout and organization Keywords Sunmor, GOR Satria, PKL, Street Vendors, Gender JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 economic activities in order to meet the needs of life and the welfare of themselves and their families. The percentage of amount of labor absorption in Indonesia is seen from its employment, the trade sector ranked first with labor absorption of 23.28 percent of the working population aged 15 years and over a week ago, as shown in Table 2. Agriculture sector absorbs labor more than any other sector of 29.69 percent. This condition is possible because geographically, Indonesia is an agricultural country with an area of 1,913,578.68 square kilometers (BPS, 2017) Table 2. Percentage of Working Population Aged 15 and Over During the Past Week by Main Employment No Business Sector Percentage of Labor Absorption 1. Agriculture 29.69 2. Trade 23.28 3. Community Service 16.92 4. Industry 14.05 5. Construction 6.73 6. Transportation 4.76 7. Financial 3.10 8. Mining 1.15 9. Electricity, gas and water 0.32 Total 100.00 Banyumas Regency consists of 27 Sub- districts, where 23 sub-districts are included in the category of rural sub-district and the remaining 4 sub-districts are included in the category of urban sub-district. It has 1,351 traders in the category of street vendors or those selling the merchandise in front of stores or sidewalks (KBBI, https://kbbi.kata.web.id/pedagang-kaki-lima/). Based on Table 3, it can be seen that the number of street vendors on the main road sections in Purwokerto is 604 street vendors or 48.28 percent of the total street vendors in Purwokerto. The average number of street vendors on the main road sections is 50 street vendors. This is in line with the city development, which brings new economic activities to be managed well to serve the needs of population who do activities, work and live in the area (Mudrajat Kuncoro, 2010) Table 3. Percentage of Amount of Informal Sector Workers in Street Vendors Section in Purwokerto by Main Road Section, in 2018 No Road Section Number of Traders Percent age 1. Gerilya Street 70 5.59 2. HR. Bunyamin Street 61 4.87 3. Kampus Street 59 4.71 4. Prof. Dr. Suharso Street (Daily Street Vendor)* 56 4.48 5. Jend. Sudirman Street (Middle) 52 4.16 6. Gereja Street 49 3.92 7. Per Kemerdekaan Street 47 3.76 8. Wahid Hasyim Street 46 3.67 9. Adipati Mersi Street 44 3.52 10. Jend. Sudirman Street (West) 40 3.2 11. Pahlawan Street 40 3.2 12. Kom. Bb. Suprapto Street 40 3.2 13. Others 647 51.72 Total 1.251 100 Source: DISPERINDAGKOP data, 2018 *Daily Street Vendors Street vendors on sidewalks along Prof. Dr. Suharso street, Purwokerto emerge because it is a government service center area. In addition, the area has a sport arena complex managed by the Banyumas Regency Government, namely Gelora Olahraga Satria (GOR Satria). As a center for sport activities, the area is crowded with people for sport activities. Along with the high number of visitors, street vendors emerge to sell the merchandise in the area, so that GOR Satria area is known as Sunday Morning (Sunmor) GOR Satria Market on every Sunday. The number of street vendors who sell their merchandise is 759 traders consisting of 233 food traders (30.70 percent) and 526 non- food traders (69.30 percent). The area has been used as Sunmor market for street vendors to sell merchandise in an effort to increase family income in order to meet their needs and improve family welfare. This study analyzes: 1). Contribution of street vendor income to family income at Sunmor GOR Satria market; 2). The level of equal income distribution of street vendors at Sunmor GOR https://kbbi.kata.web.id/pedagang-kaki-lima/ JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 Satria market; and 3). The level of welfare of street vendor families at Sunmor GOR Satria market. According to Law Number 13 of 2003 concerning Manpower, a wage is the right of the worker/labourer that is received and expressed in the form of money as remuneration from the entrepreneur or the employer to workers/ labourer, whose amount is determined and paid according to a work agreement, a deal, or laws and regulations. Street vendors do not recognize the term wage in an effort to earn income. Income is obtained from net income of merchandise sales after deducting the costs. Costs incurred by street vendors include fixed cost and variable cost. This income is the main factor that encourages a person to carry out trading activities to add and fulfill family needs (Darman, 2015). In an effort to fulfill life needs, the government through the Regulation of the Minister of Manpower and Transmigration (Pemanertrans) No. 13/VIII/2012 concerning Components and Implementation of Phases of Achievement for Decent Living Needs set standard for fulfilling Decent Living Needs (KHL). KHL is a measure of feasible, reasonable or appropriate standard of living (Gilarso, 2004). This measure is expressed by the average individual income or per capita income earned by an individual in family. The ability of each person in the effort to fulfill KHL varies depending on the competence and access to the resources realized in the form of income earned. Didit Purnomo’s study (2000) states that there is income inequality in Indonesia, especially in western and eastern parts of Indonesia. The level of income inequality in Indonesia can be determined by using Gini ratio (BPS, 2019). According to Mudrajat Kuncoro (2015), Gini coefficient of Indonesia is 0.384, meaning that the level of income inequality in Indonesia is in the low category. Street vending activities are commonly carried out to increase family income due to the inability of traders to provide business location for trading activities. According to Lani Farida’s study (2011) on the contribution of income of women working in the informal sector of trade, where 55 percent to 68 percent of respondents work as traders at Sukaramai and Cik Puan Markets, the study found that the contribution of female traders income to family income reaches 65-82 percent. Dijan Rahajuni’s study (2017) on disparity of income distribution in the poor as beneficiaries of the national program for community empowerment-independent in rural and urban areas is measured by Gini Index (GI), the average GI in Indonesia during 2014-2017 was 0.41. This means that the level of income inequality was in the high category. However, the level of income inequality in Central Java during 2014-2017 was in the moderate category because the Gini coefficient was 0.39. The Gini coefficient of Central Java province has a difference of 0.02 from the average Gini coefficient of Indonesia. The Gini coefficient of Central Java province is lower than average Gini coefficient of Indonesia, meaning that unequal income distribution in Central Java province is relatively lower than the average unequal income distribution in Indonesia. In rural and urban poor community groups, a case study on former beneficiaries of a National Program of Community Empowerment-Independent in Banyumas Regency found that the average Gini coefficient of income distribution in the respondent groups and areas was in moderate category. However, income distribution in rural areas is more uneven than in urban areas. The opposite condition occurs in Columbia, United States, there is a difference in the pattern of unequal income distribution between rural and urban community, but income inequality in rural community is lower than that of urban community (Ballard et al, 2013). The economic goal of the Indonesian government as stated in the fourth paragraph of the 1945 Constitution is “to improve public welfare”. The existence of income inequality can result in differences in people’s ability to meet their needs and welfare. This is supported by the finding of Wasilatur Rohmah, Any Suryantin, and Slamet Hartono’s study (2014) on income and welfare of sugar cane farmer households in Bantul Regency that the income of sugar cane farming has a high contribution to total household income and farming income can reduce unequal income distribution of farmer households and improve household welfare. Maulana Firdaus and Cornelia Mirwantini Witomo’s study (2014) on the level of welfare and income inequality of fishermen in Sendang Biru, Malang, East Java found that the lives of fishermen are categorized as poor/not prosperous with Gini coefficient of JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 0.42, this means that fishermen income inequality in Sendang Biru is high. Based on the results of previous studies, it can be formulated the hypotheses as follows: 1). Contribution of street vendors income to family income is high; 2). There is unequal income distribution of street vendors at Sunmor GOR Satria market as a whole and based on gender; 3). The street vendors at Sunmor GOR Satria market as a whole and based on gender have not been prosperous. RESEARCH METHODS This study is a survey research conducted on traders at Sunmor GOR Satria market, Prof. Dr. Suharso Street, Purwokerto. Sampling used Slovin formula (Riduwan & Engkos, 2012: 44) as follows: ( ) Description: N : number of population n : number of samples d : confidence level (10%) From a total population of 759 people, 90 people were taken as a sample consisting of 45 female street vendors and 45 male street vendors. The method of analysis to determine the contribution of street vendors’ income to family income is performed by comparing between trader income and family income. If the contribution of street vendors income is below 33.32 percent, it means that the contribution of income is low, 33.33-66.65 percent is categorized as moderate contribution and above 66.66 percent is categorized as high contribution. Income distribution is calculated using the Gini Index (Mudrajat Kuncoro, 2015): n-1 IG= ∑ (ƞ t+1∏t) - (ƞ t ∏t +1) t-1 Where ƞt is the cummulative share of income and ∏t is the cummulative share of population. The Gini Coefficient falls between 0 and 1. If the income contribution is below 0.4 percent, then the inequality of income distribution is low, and if the income contribution is above 0.4 percent, then the inequality of income distribution is high. The welfare level is calculated by comparing between per capita income of family members of street vendors and income to meet the Decent Living Needs (KHL) in Banyumas Regency in 2019 of Rp 1,750,000/month (Central Java Governor Decree Number 560/68 in 2018 about minimum wages in 35 regencies/ municipalities in Central Java Province in 2019). Per capita income is calculated by dividing family income by the number of family members (Wauran, 2012). RESULTS AND DISCUSSION Characteristics of respondents Characteristics of respondents seen from the age as a whole are in the productive age or between the ages of 15-65 years (BPS, 2016), with the distribution as shown in Table 4. Based on age grouping by gender at the young productive age, the number of male street vendors is higher than the number of female street vendors, likewise in the older productive age group, but in the middle productive age, the number of female street vendors is higher than the number of male street vendors. Table 4. Age Distribution of Respondents by Gender Age (Years) Male (%) Female (%) 21-34 (young productive age) 48.89 46.67 35-48 (middle productive age) 31.11 40.00 49-62 (older productive age) 20.00 13.33 Total 100.00 100.00 The average total trading capital of street vendors is Rp.2,799,889 with the lowest capital of Rp.30,000 and the highest capital of Rp.20,000,000. Based on gender, the average capital of male street vendors is Rp. 3,038,667 with the lowest capital of Rp.30,000 and the highest capital of Rp.20,000,000. Whereas the average capital of female street vendors is Rp.2,561,111 with the lowest capital of Rp.100,000 and the highest capital of Rp.15,000,000. The average capital of male street vendors is higher than those of female street vendors. When it is grouped into low, medium and high capital groups as seen in Table 5, the number or low capital street vendors ranks first, this means that most of street vendors in the Sunmor GOR Satria market have low capital. JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 Table 5. Distribution of Street Vendors Capital at Sunmor GOR Satria Market by Gender Capital (Rp) Male (%) Female (%) Low 30,000 – 6,686,666 88.89 91 Medium 6,686,666 – 113,343,332 6.67 4.44 High 13,343,333 – 20,000,000 4.44 4.56 Total 100 100 Most street vendors sell non-food items category, such as clothing, kitchen utensils, women accessories, phone credit voucher, children’s toys, sandals and shoes at Sunmor GOR Satria market by 63 street vendors (70 percent), consisting of 32 male street vendors (36 percent) and 31 female street vendors (34 percent). 27 street vendors (30 percent) consisting of 13 male street vendors (14%) and 14 female street vendors (27 percent) sell food category, such as chicken porridge, tahu aci, iced drinks, meatballs, empal, leker, spring rolls, pizza, etc. Most female street vendors sell foods, while most male street vendors sell non-food items. Table 6. Distribution of Merchandise Types of Street Vendor Respondents at Sunmor GOR Satria Market Purwokerto Type of Mercha ndise Male Female Amount People % People % People % Food 13 14 14 16 27 30 Non- Food 32 36 31 34 63 70 Total 45 50 45 50 90 100 Contribution Of Respondents’ Income To Family Income The income of respondent’s family consists of income earned from street vending and other incomes, such as income earned from selling merchandise at home, wages or salaries from odd jobs, and income earned from street vending at Sunmor GOR Satria market. The average street vendors income is Rp.3,065,778 a month with the lowest income of Rp.40,000 and the highest income of Rp.24,750,000 a month. 63 street vendors or 70 percent have below-average income. Of the 63 street vendors, 31 people or 49 percent are male street vendors and 51 percent are female street vendors. The average family income of street vendors a month is Rp.7,841,778 with the lowest family income of Rp.120,000 and the highest family income of Rp. 56,680,000. The number of street vendors whose family income is below average is 70 people or 77.78 percent. Of the 70 people, 35 people are male street vendors and 35 people are female street vendors. The contribution of the average total income earned from street vending is 41.37 percent. The contribution of street vendors income to family income by gender is based on grouping the contribution of female street vendors income to family income and the contribution of male street vendors income to family income. The average female street vendors income is Rp. 3,595,111 a month, the number of street vendors with below average income is 32 people or 71 percent. The average family income of female street vendors is Rp.9,131,822, the number of female street vendors with below average income is 37 people or 82 percent. The contribution of average female street vendors income to family income is 42%. The average income of male street vendors from selling goods is Rp.2,527,111 a month, the number of male street vendors with below average income is 31 people or 69 percent. The average family income of male street vendors is Rp.6,511,733, the number of male street vendors with below average family income is 31 people or 69 percent. The contribution of average male street vendors income to family income is 40.70 percent. Level Of Respondents Income Distribution To find out the extent of level of equal income distribution of respondents, it is measured using the Gini Index (GI). GI calculation for the respondents’ family as a whole and based on gender can be seen in table 7 as follows: Table 7. Gini Index of Respondents’ Family as a Whole and Based on Gender Respon dent of Street Vendor GI of Street Vendor Family Income Income Distributi on Category GI of Street Vendor Income Income Distributi on Category Female 0.52 High inequality 0.47 High inequality Male 0.44 High inequality 0.39 Moderate inequality Overall 0.48 High inequality 0.44 High inequality It can be seen that the income inequality of the respondents’ family as a whole and based on gender is in high category. Income inequality of male street vendor is in a JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 moderate category, but it is likely to lead to high category. Welfare Level of Respondents’ Family The welfare level of respondents’ family as a whole and based on gender can be seen through a comparison between respondents’ per capita income as a whole and based on gender and income to meet the Decent Living Needs (KHL) in Banyumas Regency in 2019 of Rp.1.750.000,-/month (Central Java Governor Decree Number 560/68 of 2018 concerning minimum wages in 35 Regencies/Municipalities in Central Java Province in 2019). Per capita income is measured by dividing respondents’ family income and the number of family members. Per capita income is an indicator to show the level of a person’s ability to fulfill his or her needs. Currently, a person’s standard of living is measured by Decent Living Needs (KHL), if a person’s per capita income has fulfilled KHL, then he has meet the level of adequacy of physical and non-physical needs. This means that the level of his living needs has been adequate, thus the minimum level of adequacy and well- being of his life has been fulfilled. In this study, the average number of respondents’ family members is 3 (three) people. The average total per capita income of respondents’ family is Rp.2,629,326 per month, but the respondent’s family with below average per capita income reaches 64 respondents or 71.11 percent. The average per capita income by gender for female street vendors family is Rp.2,704,800, the number of female street vendor family with below average per capita income is 32 respondents or 71.11 percent. Whereas the average per capita income of male street vendor family reaches Rp.2,553,852; the number of male street vendor families with below average per capita income is 32 respondents or 71.11 percent. Level of welfare of the respondents’ family is measured by comparing between per capita income of the respondents’ family and income equivalent to KHL of Rp.1,750,000. Overall, the number of respondents whose income level had fulfilled KHL only reaches 48 respondents or 53.33 percent, while per capita family income of remaining 42 respondents or 46.67 percent does not fulfill KHL. The number of male street vendor families who meet per capita income equivalent to KHL is 25 respondents or 55.56 percent, while the number of female street vendor families who meet per capita income equivalent to KHL is 23 respondents or 51.11 percent. The contribution of average street vendor income at Sunmor GOR Satria market is in the moderate category or between 33.33- 66.67 percent by 41.37 percent of respondents. The number of street vendors whose contribution of income is in low category of less than 33.33 percent is 20 respondents or 0.22. The contribution of average female street vendors income to family income is in moderate category of 42 percent, 10 female street vendors (22.22 percent) have a contribution of below average income to family income. The contribution of average male street vendors income to family income is in moderate category (40.70 percent) and 10 male street vendors (22.22 percent) have a contribution of low income to family income. Thus, the first hypothesis stating that the contribution of street vendors income to family income is high, is rejected. This result is different with Lani Farida’s study (2011) stating that the contribution of income of women working in the informal sector (trade) at market is high, this is possible because the pattern of selling at market is carried out every day, while street vendors at Sunmor GOR Satria Market do not carry out their activities every day, but once a week. Similarly, the results of Wasilatur Rohmah, Any Suryantin, and Slamet Hartono’s study (2014) examining the contribution of the agricultural sector to family income found that the contribution of the agricultural sector to family income is high, this means that the efforts of street vendors to increase income through incidentally selling goods are not reliable to have high contribution to family income. The second hypothesis stating that there is income inequality at Sunmor GOR Satria market as a whole and by gender is accepted. The level of income inequality is relatively high because the Gini coefficient is above 0.40. This means that unequal income distribution occurs anywhere between cities and between villages in Indonesia (Dijan Rahajuni, 2017) or abroad (Ballard et al, 2013). Firdaus and Cornelia Mirwantini Witomo’s study (2014) found that in the fisheries sector, there is unequal income distribution on fishermen. Moreover, Wasilatur Rohmah, Any Suryantin, and Slamet Hartono’s study (2014) found that there is income inequality in the agricultural sector. Income inequality occurs at Sunmor JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI, VOL 21, N0 2, 2019, 34-41 GOR Satria market Purwokerto due to differences in business capital, types of merchandise, the distance between trading location and the center of crowd at GOR Satria, education level and selling skills. Although the average income of street vendors as a whole or by gender is above KHL of Rp.2,629,326, the average income of female street vendors is Rp.2,704,800 and the average income of male street vendors is Rp.2,553,852 with the amount of income equivalent to KHL of Rp.1,750,000. However, the income of 71.11 percent of respondents as a whole or based on gender is below KHL. Thus, the third hypothesis stating that street vendors at Sunmor GOR Satria market have not been prosperous is accepted. The finding of this study is consistent with the finding of Firdaus and Cornelia Mirwantini Witomo’s study (2014) stating that the informal sector workers, in this case the fishermen live in poverty or have not been prosperous. CONCLUSION From the discussion of research findings, it can be concluded that: 1. Contribution of street vendor income from selling goods at Sunmor GOR Satria market as a whole and based on gender is in moderate category; 2. Level of income inequality of street vendors at Sunmor GOR Satria market as a whole and based on gender is in high category; 3. Most street vendors at Sunmor GOR Satria market as a whole and based on gender have not been prosperous. To improve distribution of income and welfare of street vendors at Sunmor market GOR Satria, it is necessary to improve the management of street vendors in terms of location and organization. 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