Multicultural Education Volume 7, Issue 8, 2021 _______________________________________________________________________________________ 430 Policy Innovation Context In The Organization And Empowerment Of Street Vendors In Baubau City, Sulawesi Tenggara Province Syahril Ramadhan Article Info Abstract Article History Received: May 11, 2021 This research is motivated by the existence of policy innovations carried out by the local government of Baubau City in managing and empowering street vendors in Baubau City. The problem in this study is how is the context for the emergence of policy innovations for structuring and empowering street vendors (PKL) in Baubau City. The purpose of this research is to identify the context of the local government policy innovation in Baubau city in managing and empowering street vendors in Baubau City. The approach used in this study is a qualitative approach. This research is focused on the policy context in managing and empowering street vendors in Baubau City. This research is a library research with the subject of Baubau City Regional Regulation Number 3 of 2015 concerning Structuring and Empowerment of street vendors. This research uses content analysis method. The results show that there are two contexts that encourage the innovation of Baubau municipal government policies in organizing the and empower street vendors in Baubau City, first, democracy and decentralization policies. Second, social and economic factors and demographics. Accepted: August 20, 2021 Keywords : Policy Implementation, Structuring, Empowerment, Street Vendors DOI: 10.5281/zenodo.5228709 Introduction The ideal city development and arrangement must pay attention to various aspects such as social, economic, cultural and environmental aspects. In fact, the development and arrangement of cities often cannot keep up with the rapid development of the times so that the concepts that have been made seem to be obsolete and unable to cope with such rapid developments. Urban development needs to prioritize aspects of the use of science, technology and innovation as a forming factor for competitiveness or what is called innovation-driven development. Development growth needs to be driven by a strategy that is not only more efficient, but promotes innovation by leveraging science, technology and innovation (innovation driven). The development of urban development cannot be separated from the existence of economic actors. One of them is a street vendor whose existence is very dilemma. The emergence of street vendors in almost every corner of the city has created new problems and made it difficult for the city government to make arrangements. One of the cities in Indonesia that is facing a flood of street vendors is the City of Baubau. Baubau City is one of the cities in Indonesia which has a fairly high economic growth. A strategic location that is on the golden route for Indonesian shipping that connects the Western and Eastern Regions of Indonesia, making Baubau City a city that will continue to develop rapidly. This development will cover all aspects, both physical, economic, and social aspects, which will gradually increase the status of Baubau City from a small town to a medium city and even a large city. The implication of all this will increase the complexity of the problems that occur in the city of Baubau. From an economic perspective, the development of the city of Baubau will be followed by the economic dynamics that occur. The growth of economic activity, both in the formal and informal sectors, will be higher in proportion to the increasing needs of the community, which will gradually continue to adapt to the physical development of the city. Economic activities that continue to develop, both in the formal and informal sectors, will have impacts which, if not anticipated and planned early on, will have negative impacts that outweigh the positive impacts. Innovative policies are needed so that negative impacts can be minimized while positive impacts can be maximized, especially in terms of orderly space utilization. The informal sector in Kota Baubau is currently growing very rapidly. One of the informal sectors that is growing very rapidly is the street vendors (PKL). The development of street vendors can be seen to dominate the activities of other sectors in areas that are centers of community activity. It is not uncommon for the existence of street vendors on the one hand to complement public spaces. On the other hand, the existence of street vendors can bring problems to urban areas. Problems occur because of the absence of a good arrangement,