ABSTRACT The development of Malioboro-Ahmad Yani area became the center of a wide range of activities from 1970 until the current is the result of contributions between the Government and the economy groups. A wide range of phenomena and problems surfacing during the developmental process of Malioboro-Ahmad Yani area, one of them is the phenomenon of privatization. The phenomenon of privatization became the dominant picture of the economic group interventionin dominating the management of Malioboro-Ahmad Yani area than the Government that affect the existence value of publicness. This study aims to describe the dynamics of management of publicness in the middle of the dominance of the economy in the Malioboro area-Ahmad Yani by trying to unravel conflicts between institutions (Government and economic groups). This research used the qualitative method with case studies approach and case studies of single instrumental type which focus on specific issues, namely the publicness. The process of data collection is performed with the techniques of observation, interview and documentation. Based on the results of research in the field, this research can be summed up as follows: first, the dynamic management of publicness is experiencing strong pressure from the market. The emergence of economic group that even legal status as being the point where the value of publicness is at stake in the contest between the realm of formal actors: Government and informal: economic group. Second: the existence of Government run publicness in two ways: through the eviction action against the presence of members of the economic group at the time of their status are still illegal and with the negotiation of interests. Keywords: Contestation, publicness, privateness, economic groups, Malioboro.