The Government of Indonesia has mapped out a more strategic plan to manage urban development in order to address its complex problems, from the development of metropolitan area to the relocation of the nation’s capital city to Kalimantan, as stated in the current Medium-Term National Development Plan (Rencana Pembangunan Jangka Menengah Nasional or RPJMN) 2020-2024. Rudy S. Prawiradinata, Ph.D, Deputy Minister of National Development Planning/Head of National Development Planning Agency for Regional Development expresses his views on the present and future perspectives of urban development in Indonesia.
What are the main tasks of the Deputy for Regional Development?
The Deputy for Regional Development builds regional macroeconomic frameworks, formulates and implements policies, as well as monitors, evaluates and controls the implementation of national development planning on regional level.
More specifically, the Deputy for Regional Development oversees policies related to spatial planning and disaster management (including socio-economic analysis, land affairs, information and data systems); local development (including urban-rural affairs, local government apparatus, institutions and finance); and regional development itself which is divided to 7 main islands.
Can you give a snapshot of the current urban planning situation in Indonesia?
Based on the study conducted by Ministry of National Development Planning and the World Bank in 2019, if well managed, urbanisation is closely correlated with the improvement of national welfare. However, Indonesia has not yet received full benefit from urbanisation. Every 1 percent growth of urban population in Indonesia only increases GDP per capita by 1.4 percent. This number is relatively low compared to China and East Asia-Pacific, where GDP increases by 3 percent and 2.7 percent respectively. Several causes have been identified whereby lack of provision of basic services such as clean water, sanitation, and public transport has been defined as the primary cause of externalities that affects the contribution of urban area to the economic growth. Data from the study also points out several facts which highlighting these externalities, i.e.:
- Ratios of house price to income is higher in Bandung, Denpasar and Jakarta than in New York
- One-fifth of Indonesia’s urban population lives in slums
- The total cost of traffic congestion for Indonesia’s 28 multi- and single-district metro areas is equivalent to 0.5 percent of national GDP and Jakarta is consistently rated one of the most congested cities in the world.
- Most Indonesian cities have unacceptable air pollution based on annual average PM2.51 concentration in 2015.