Assessing the welfare impact of Yogyakarta’s privilege fund on street vendors affected by the Sultan’s urban order policy

Abstract

This study examines the effectiveness of the Special Fund (Danais) in improving community welfare through a case study of street vendor (PKL) relocation in the Malioboro Terrace area and the Abu Bakar Ali Special Parking Area (TKP), Yogyakarta. Using a qualitative descriptive approach, data were collected through in-depth interviews, focus group discussions (FGDs), participatory observation, and policy document analysis, involving stakeholders including street vendors, parking attendants, and local government representatives. The findings reveal that the Danais-financed relocation policy has not delivered meaningful benefits to the affected communities. Key findings include declining revenues, limited participation in planning, and dissatisfaction with new locations and facilities. Although perceptions of social security improved, selling comfort and business sustainability remain significant concerns. These findings suggest that a technocratic approach insufficiently grounded in community needs and participation risks generating new forms of inequality. Accordingly, the deployment of Danais must be reoriented towards a more inclusive and equitable strategy focused on long-term socio-economic outcomes.