Jakarta is home to many communities; some are enjoying the concept of the modern city, others are living in areas characterized by pre-modern forms. Kampongs, which refers to the latter type of communities, is where people integrate spaces for living and working. The community of micro-entrepreneurs living in Kampong has managed to cope with the pressure of modernization and contribute significantly to the livelihood of the urban population, especially the low-income. They provide skills and services that vary from garment and furniture industry to upcycling office furniture, automotive spare parts, and urban farming. This paper makes a case of Kampong Rawa, whose residents reside in integrated settlements and share a living and working environment of producing tofu and tempeh (read: soybean cake). Further, this paper explores the determinants of a collective institution in organizing the production activities and dwelling facilities. Despite all pressures to be economically competitive and to overcome internal disputes between members of the community, Kampong Rawa represents itself as an alternative urban way of life.

By using a grounded research methodology, the analysis shows that demand for city-wide development trend has triggered the adaptation process within the kampong. Kampong depicted as a traditional urban form transforms beyond what is defined by the rational economic principles. The transformation of the kampong takes place by respecting its local collective consciousness.