The informal sector has an important role in contributing to
development, because the informal sector absorbs labor (especially lower-class
society) significantly reducing the urban unemployment problem and increase the
income of urban poor. In addition, the informal sector to contribute to
government revenue of the city. Informal sector growth is not rapid enough
balanced with the welfare of its workers.. As in the Kureksari Waru, in the
area there are many cottage industries engaged in the world where industrial
blacksmiths were included in the informal sector.
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