Leadership styles: incentive or disincentive approach in addressing street vendor problems in Jakarta and Bandung, Indonesia

Abstract

The problems of street vendors have long been experienced by most big cities in Indonesia. A newly emerged city leadership style in Jakarta and Bandung City shows two different approaches towards sustainable solution of street vendor problem. While Governor of Jakarta applies an incentive approach to street vendors by transferring them from the streets of Jakarta to appropriate place, Mayor of Bandung City applies disincentive approach to the buyers of street vendors by giving penalty to those making transaction with the vendors in "red zone". This study was undertaken in Jakarta Metropolitan, the Capital City of Indonesia and Bandung City, the Capital City of West Java Province. The choice of Jakarta and Bandung was based mainly on the new paradigm of city leadership in Indonesia as reflected by these two leaders of the city. They are both out-of-the-box leaders. Both approaches exhibit the positive results on the easiness of traffic in the area, positive image of the area as perceived by most citizens, and cleanliness.