Market Stall Pricing and Vendor Profitability: An Empirical Evaluation of Perumda Pasar Pakuan Jaya In Bogor City

Abstract

The rapid increase of street vendors (PKL) in Bogor City has generated congestion, disorder, and waste problems, prompting the local government to relocate vendors into traditional markets managed by Perumda Pasar Pakuan Jaya. However, the rental fees imposed for market stalls often exceed vendors’ profit capacities, causing nearly half of the kiosks to remain vacant. This study evaluates the stall rental pricing policy using a chi-square test to examine its relationship with vendor profitability and a SWOT analysis to explore internal and external factors affecting tariff determination. Based on responses from 256 traders selected through stratified random sampling, the findings indicate that effective traditional market governance depends not only on economic considerations but also on the ability to build social trust and cooperative relationships between administrators and traders. Although initial SWOT results position the pricing policy in a strength–opportunity quadrant, empirical perceptions reveal that priority should be given to WT strategies, emphasizing internal improvements and mitigation of external constraints. Key policy directions include strengthening managerial capacity, improving sanitation, upgrading electrical and drainage systems, and ensuring transparency in the use of rental revenue. Periodic disclosure of modernization expenditures can foster trust and demonstrate that tariff adjustments support tangible improvements. Ultimately, modernization should be viewed as an ongoing process of enhancing public service quality and sustaining traditional markets as vital social and economic spaces.