3. Rapid Urbanization: The Challenges and Opportunities for Planning in Indonesian Cities

Within the rapidly urbanizing Southeast Asia region, Indonesia’s largest cities are among those experiencing the highest rates of growth. The Jakarta Megapolitan Region, now exceeding 30 million inhabitants, has spawned four of Indonesia’s most populous cities in its periphery over the past three decades. Data presented, dealing with demographic and spatial expansion of Jakarta megacity, supports the conclusion that it is the periphery and not the center city where urbanization is occurring. This process has been fueled by the real estate development machine with significant support from public transportation investments, but with costs borne through widespread displacement of peri-urban settlements and conversion of agricultural lands to urban uses, all contributing to an acknowledged increase in inequality in Indonesian cities. This places increased pressure on national and local governments to provide infrastructure to support post-suburbanization, including continued expansion of transportation facilities, but especially to generate affordable housing to accommodate the growing population drawn to the economic opportunities in expanding cities. Current investments are not keeping up with the needs of these urbanizing regions. Moreover, evidence from Indonesian researchers suggests that the day-to-day planning and implementation in support of peri-urbanization is guided by the private development sector objectives rather than through public controls and meeting the needs of incoming residents. With the attention of national government now focused on planning a new capital city in East Kalimantan, the necessary engagement of the public sector to counter the dominance of the private sector in guiding Indonesia’s rapid urbanization is not likely to be sufficient.