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Economic Resilience Of Street Vendors In The Era Of Rupiah Depreciation: A Theoretical Conceptual Study Of Informal Economics

Year: 2026

Type: article

Abstract: 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.

Source: International Journal of Multidisciplinary Research and Creative Innovation Ideas

Authors: Eko Handoyo, ⁠Lailasari Ekaningsih, Setya Chendra Wibawa, Husaina Banu Kenayathulla

Institutions: State University of Semarang, Universitas Darul Ulum Islamic Centre Sudirman, Sekolah Tinggi Ilmu Ekonomi Darul Falah, University of Malaya

Language: English

Topic: SMEs Development and Digital Marketing

Subfield: Business and International Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty

Open Access status: diamond

OpenAlex ID: W7219962115

FWCI:

Cites: 12

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Related to: 10