ABSTRACT
The area around the former monarchy of the Kasunanan Surakarta’s palace where thousands of textile vendors traded their commodities in the traditional market attracted numerous street vendors and other non-Solo casual large-scale textile traders. This situation had encouraged the city government or the royal family released actions that affected the traders or street vendors’ livelihood. By using ethnographic approach, this research shows that conflict rose because of the inconsistency in decision making created through a top-down approach in the Reform era, economic motives and different interest amongst groups. Conflicts were sometimes resolved by using bottom-up approach through delegation of authority, promises, or forces of powerful groups. Since conflicts were not entirely resolved, powerless groups of traders wanted to have decision making approach, representing collaboration based on inclusive authentic dialogue in governing conflicts.
