Turning Insights From Street Vendors Into Climate Solutions
How to improve living standards in Indonesia whilst mitigating climate change
In the 1950s, the economist Simon Kuznets famously suggested that societies prioritize obtaining economic growth and wealth before shifting their focus towards sustainable practices that improve quality of life.¹ Sustainable practices promote the well-being and resilience of ecosystems, human communities, and economic prosperity.² He suggested that survival normally comes before environmental consideration. More than 50 years later, we may refine Kuznets’ hypothesis as it is now possible to observe how survival and environmental consideration can actually be codependent.
Over the past two years, I worked on a venture that provides food cart workers in Indonesia with solar-powered lighting solutions with lithium batteries, addressing their desire for sustainable energy sources. This reduces electricity costs and provides an efficient lighting source allowing the workers to work from locations in the city otherwise unsuitable due to lack of access to electricity. As I engaged with the daily operations of those food cart workers, their strong dedication to sustainability was evident as it directly supported their ability to work. In the past weeks, I delved into the daily routines of 15 food cart workers in Jakarta and Solo, interviewing them to better understand their motivations to work sustainably.
First, I discovered that food cart workers occupy a central role within Indonesian society showing that even small efforts towards achieving sustainable change may yield a positive environmental ripple effect in their direct context. Second, I found that being eco-friendly can in fact boost economic success for the workers. Third, I emphasize that food cart workers who are environmentally responsible can create a positive feedback loop, leading to improved business outcomes. Fourth, I show how other small economic parties in the economy show similar dynamics, suggesting that we may generalize some of my findings on how economic progress and sustainability can actually go hand in hand when survival is still critical. I conclude that we may draw valuable lessons from the workers on how we may incorporate sustainability in a wider range of operations, albeit economic advancement still being the main priority.
Small interventions driving sustainable change can make a significant impact
Large corporations and small vendors share a commonality in their pursuit of sustainability. Being eco-friendly extends beyond major enterprises, for micro businesses also significantly contribute to the promotion of environmentally conscious practices.
Food carts wield significant influence beyond the confines of the cart. Their dedication to eco-friendliness not only contributes to a sustainable future but impacts a broader stakeholder system. For instance, the parties that vendors directly interact with, such as their suppliers, consumers, and the government. Figure 1 summarizes the dynamics between these different actors. I will now discuss each of these stakeholders and how their relationship with the food cart workers affects sustainable practices.
Suppliers
Food cart vendors establish vital partnerships with suppliers, securing essential resources and ingredients, while reciprocating with valuable feedback. This creates a symbiotic relationship that fuels close working relationships, such as with local agricultural producers, inspiring sustainable sourcing practices. For instance, Ahmad, a food cart owner selling Indonesian egg rolls (lumpia telur) “uses sustainable packaging that does not contaminate the environment.”
Suppliers are encouraged to provide ingredients that are not only of high quality but also environmentally friendly. For instance, they may choose to source organic produce, support fair trade practices, or prioritize seasonal and locally grown items. Thereby reducing the environmental footprint associated with ingredient production and transportation.
Consumers
Food cart workers have to satisfy consumers who demand unique and authentic products. “We work every day to keep our customers happy and find daily income”, says food cart owner Randi. When food carts flourish, they contribute to the local economy and serve the community. In fact, independent food cart workers, despite being widely underestimated due to limited formal education, prove that success does not solely rely on massive capital investments. In 2022, they achieved a sales value of approximately 850 million U.S. dollars, making up 65% of all street kiosk sales in Indonesia.³
Government
In the regulatory landscape, government regulations impact the establishment and operations of food carts. The government can adapt regulations to meet sustainability goals. These regulations range from hygiene standards to licensing requirements and location restrictions. For instance, government agencies often stipulate specific sanitation protocols to ensure food safety, such as mandating regular health inspections and the proper storage of ingredients. Governments can encourage the use of biodegradable packaging materials, setting emission standards for food cart generators, or providing incentives for the adoption of solar-powered energy sources. These regulatory adjustments not only enhance environmental sustainability but also exemplify how government policies can actively support and shape the practices of food cart workers in the pursuit of sustainable goals.
I found that the different stakeholders (suppliers, consumers, and government) are closely linked together and intersect within the world of the food cart workers:
“Everyone is responsible for doing more about the environment,” states food cart owner Randi.
We all have a shared responsibility to not remain complacent and prioritize sustainability. Having already taken the first initial steps to prioritize the environment, food cart workers sit at the nexus of locally adopting a collective responsibility to safeguard the planet for future generations. They show that small changes can have larger positive implications in terms of sustainability.
Being eco-friendly is the key to prosperity
Energy-efficient technologies and waste reduction strategies secure the long-term sustainability of food cart businesses and reduce operational costs. Not only that, but a tidy workspace improves a food cart worker’s experience when selling meals.
Ali, owner of a sate padang food cart, states, “Creating a clean environment makes selling comfortable and helps us attract customers.”
Let’s take a closer look at how street vendors have integrated climate-conscious practices into their operations by focusing on renewable energy and the reduction of pollution.
Renewable Energy
Integrating energy-efficient technologies in food cart operations not only reduces environmental impact but also the size of utility bills. Food cart workers recognize the value of limiting energy consumption. Mariono, a dedicated food cart owner selling traditional Indonesian congee, emphasizes that solar panels are an ideal solution due to their ability to “save energy, be more practical, and promote environmental friendliness without producing any pollution.” Mariono shows us that embracing technologies such as solar energy is not just a trend but a vital step towards a sustainable and profitable future — figure 2.
Reduction of pollution
Clutter-free surroundings lead to mindful consumption whilst cleanliness reduces labor hours required for waste management.
Fadli, a food cart worker specializing in Indonesian meatball delicacy (pentol), is committed to “not using materials that pollute the environment.”
After each meal, he diligently cleans his workstation. Resources are neatly stored, food scraps are composted, and each surface and equipment is sanitized. The direct outcome? A reduction in generated waste — figure 3. Optimizing resources decreases the consumption of materials, energy and water. Thereby saving money. By choosing to reduce pollution, food cart workers like Fadli embrace eco-friendly practices that are not just morally commendable but also smart and rewarding business decisions.
The examples of energy-efficient technologies and waste reduction in food cart businesses highlight the synergy between environmental responsibility and business success. Mariono and Fadli’s experiences emphasize that a clean, eco-friendly approach attracts customers and reduces operational costs. Incorporating renewable energy, like Mariono’s solar panels, showcases innovative solutions for cutting costs and modernizing equipment. Fadli’s dedication to pollution reduction through eco-friendly practices and cleanliness underscores how waste minimization leads to resource efficiency and financial benefits. These climate-conscious practices demonstrate the dual advantage of embracing sustainability, both through ethical responsibility and economic prosperity.
Sustainable values create a positive feedback loop
The relationship between food cart workers and their customers is intricately connected to wider societal values and sustainable principles. If we look at the connections between each stakeholder in figure 1, we see that the interactions between each party create a positive feedback loop with the intention of improving economic success through sustainability.
A research study conducted in Bandung, Indonesia⁴, observed 207 street vendors serving as primary food providers for independent workers in the surrounding community. These vendors constituted 50–80% of their overall food consumption, showcasing the deep cultural significance of food carts in local sustenance. The interplay between sustainability and the loyalty of customers is evident. Female workers in a textile factory location, relying heavily on food carts, demonstrated high dietary diversity scores (MDD-W scores) ranging from 7 to 10 out of 10, according to United Nations standards.⁵ The data underscores the nutritional significance of food carts in the daily lives of these consumers. This nutritional reliance fosters strong bonds of trust and loyalty between food carts and their local contexts, as customers repeatedly choose food cart meals for their sustenance. This bond, rooted in providing quality goods, sets the stage for a positive feedback loop through the commitment of food cart workers to eco-friendliness.
The impact of making sustainable decisions drives transparency in suppliers, shaping government policies, and strengthening eco-friendliness amongst consumers, as shown in Figure 1. Through the evidence from the study in Bandung, Indonesia, the relationship between food cart workers and customers is one of trust and reliance. This connection continues to grow by meeting nutritional needs and embracing eco-friendly practices. Food cart workers are cultural role models who reinforce a cycle of sustainable values. They demonstrate a commitment to reducing their carbon footprint as a clean and sustainable environment aligns with evolving societal values, driving workplace efficiency and customer satisfaction. A commitment to sustainability, combined with the provision of high-quality and nutritious meals, fosters loyalty.
Applying lessons in sustainability across the economy
The experiences of food cart workers suggest a nuanced approach to economic well-being, one that intertwines financial stability with ecological consideration, benefitting both the workers and the environment alike. In Indonesia, as in many other places, the primary concern of low-income workers revolves around ensuring economic stability and meeting basic needs. While economic gain remains paramount, food cart workers’ commitment to environmental consciousness presents a new perspective.
Examining specific examples beyond the food cart workers becomes imperative, as the lessons on prioritizing sustainable decisions introduced earlier can be effectively generalized and more broadly applied to other parties in the economy, such as waste scavengers and rice farmers. Through generalizing these insights, waste scavengers can enhance their income-generating activities, while rice farmers can mitigate costs and improve yields through sustainable practices. I discuss both examples:
Waste Scavengers
Waste scavengers contribute significantly to salvaging recyclable materials and reducing environmental degradation, but they still earn less than minimum wage income. At Bantar Gebang, Southeast Asia’s largest landfill spanning 200 acres, waste pickers earned an average monthly income of around $216 USD, below the 2014 Indonesian minimum wage of $240 USD.⁶ If there were more initiatives to reduce impurities in waste, that would increase the income from selling these recyclables.
Much like food cart workers, waste scavengers prioritize eco-conscious practices. They make a living by consistently segregating recyclables from non-recyclable waste, producing the input materials for recycling facilities. A study on dumpsite waste pickers at Southeast Asia’s largest landfill, Bantar Gebang, Indonesia, estimated their efforts produced over 725.4 tons of recycled soft plastic pellets and 280.8 tons of hard plastic pellets and flakes between 2010–2018.⁷ That is the equivalent of the weight of approximately 100 school buses. The scavengers managed a recycling rate of 2.8–7.5% of total transported solid waste.⁸ Implementing waste management policies to establish systems that enhance the quality and efficiency of their work may contribute to an increase in income as well as sustainable waste management for the country. Sustainable practices have the potential to enhance economic outcomes for workers like waste scavengers who value the environment.
Rice Farmers
As farmers face daily challenges due to the climate worsening, they demand more sustainable farming practices. The rice industry is dominant in Indonesia and smallholder farmers play a significant role in its production. More than 93% of families consume rice daily and smallholder farmers contribute 90% of the total rice production.⁹ While Indonesia is the third largest producer of rice in the world, change needs to happen to remain competitive.
Just simply advocating to be more eco-friendly can make a difference. The need for increased sustainability in agriculture has reached the Indonesian Agency for Agricultural Research and Development (IAARD). Dedicated to advancing sustainable farming practices, they possess the technology needed to boost agricultural productivity.
Dr. Ir. Fadjry Djufry, the Director General of IAARD, emphasizes, “Numerous studies confirm that agricultural machinery can yield labor savings, boosting rice farming efficiency by up to 20 percent.” He further states, “Technology has shown a remarkable ability to reduce crop loss by 10 to 12 percent and amplify farming profits by as much as 50 percent.”
One initiative is the Integrated Planting Management of Rice, focused on rice productivity. Another is an intermittent water-saving irrigation system to allow the soil surface to dry completely before the next watering. They also introduced a mechanical rice transplanter, which automates seedling placement for uniform growth.¹⁰
In summary, the experiences of eco-conscious food cart workers reveal a link between economic well-being and environmental commitment. These insights, when extrapolated, suggest pathways for waste scavengers to bolster income through improved waste management and for rice farmers to enhance output via sustainable practices. The broader applicability of prioritizing sustainability is relevant across different economic sectors. Although each individual in these examples is trying to survive on small wages and only signifies a small cog in the larger machinery of society, their combined efforts make a significant positive impact that positively impacts the wider Indonesian environment.
Prioritize sustainability from the start to improve your livelihood
In conclusion, the economist Simon Kuznets stated that economic growth is prioritized over sustainability in developing economies. As economies expand, industrialization then introduces pollution and resource depletion. As prosperity increases, so does the focus on the environment, resulting in sustainability investments and a cleaner environment. This is the traditional interpretation of the Kuznets Curve. However, I found that in some instances sustainability in fact closely associated with economic growth.
As of June 2023, Jakarta’s severe pollution with an AQI of 157¹¹ stands alongside widespread poverty among more than 26 million Indonesians. Solutions actually extend beyond corporations and governments. In fact, street food vendors in Indonesia provide valuable insights and a lesson for all.
Food cart workers teach us that implementing small interventions for sustainable change creates a notable environmental impact. Eco-friendliness actually enhances livelihoods and initiates a self-reinforcing cycle that enhances business prosperity. These insights also find resonance in other marginalized economic groups and can be seen incorporated for enhanced economic success.
Environmental prioritization is pivotal, offering profitable outcomes from eco-friendly initiatives. However, just like with any decision, a cost is involved. Navigating the complex trade-offs between economic growth and environmental well-being demands critical reflection. Are short-term gains worth compromising the health of our planet for future generations? Can we embrace renewable energy despite initial costs for a cleaner future? Balancing urban development with habitat preservation requires innovative solutions. The choices we make now shape our future as well as our planet’s. If we want to reach a goal where prosperity is intertwined with ecological preservation, it is important to prioritize the environment as much as economic benefits.
To re-contextualize the Environmental Kuznets Curve from this real-life case of food cart workers, don’t wait for a high income to make sustainable choices. In fact, integrating eco-friendly practices into business operations can create a cleaner, more productive work environment and increase economic growth. Sustainability can be pursued right from the beginning of the curve. Thus, economic growth and sustainability can go hand-in-hand. More studies can be done to quantify the economic impact of integrating solar panels as an alternative lighting source, how to better remove impurities in waste through new facilities, or how to integrate new farming technology into rice output. However, with a new reframed understanding of food cart workers as sustainable entrepreneurs, there remains no excuse for the other stakeholders in Indonesia to stand by and not take action.
About the author:
My name is Athena Djojonegoro and I am a high school student in Jakarta, Indonesia passionate about climate solutions and technology. I am dedicated to making a positive environmental impact in the world as a sustainable entrepreneur
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