Indonesia’s Urban Development and Governance Sharing Development Solutions for an Emerging...
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Indonesia’s Urban Development and Governance Sharing Development Solutions for an Emerging Indonesia Peter D. Ellis Lead Urban Economist Pakistan Urban
Indonesias Urban Development and Governance Sharing Development
Solutions for an Emerging Indonesia Peter D. Ellis Lead Urban
Economist Pakistan Urban Forum January 10, 2014 The World Bank
1
Slide 2
Structure of the Presentation 2 Urbanization Trends Growth of
Major Cities Decentralization Local Governance
Slide 3
Compound Annual Growth Rates of Urban Population, 1970-2010
Source: United Nations World Urbanization Prospects, 2010 Indonesia
has the fastest growth rate 3
Slide 4
China47 % India30 % Pakistan36% Indonesia54 % Philippines49 %
Thailand34 % Vietnam31 % 4 Indonesia also has the Largest Share of
Urban Population (2010) 4
Slide 5
Indonesia as we know it 5
Slide 6
Java has the highest population density 58% of total population
Size shows proportion of provincial population relative to national
population 6
Slide 7
Highest Economic Density in Java 7 Major metropolitan areas of
Jakarta and Surabaya are dominant in Java. Off Java, economic
activity is also concentrated in major urban areas.
Slide 8
Based on population and economic densities alone, Java appears
to be highly urbanized However, when we use the Agglomeration Index
8
Slide 9
9 Java is not completely urbanized
Slide 10
Metropolitan Areas Dominate Especially Jakarta Metropolitan
Gross Regional Domestic Product (GRDP) share to Non-oil GDP 10
Slide 11
Population is De-Concentrating from all Major Indonesian
Metropolitan Areas 11
Slide 12
Population growth is primarily in periphery, not in core city
12 Metro name 2005CAGR 1995 - 2005
CorePeripheryMetroCorePeripheryMetro Jakarta 8,820,603 12,799,559
21,620,1620.44%2.47%1.56% Surabaya 2,611,506 5,974,090
8,585,5960.33%1.46%1.10% Bandung 2,270,969 5,079,430
7,350,3990.66%3.13%2.26% Semarang 1,446,533 4,335,017
5,781,5500.97%1.15%1.10% Medan 2,029,797 1,812,196
3,841,9931.07%0.10%0.59% Palembang 1,369,239 1,122,731
2,491,9701.20%-2.67%-0.85% Makassar 1,194,583 1,106,362
2,300,9451.58% Denpasar 574,610 1,208,004 1,782,6143.97%1.07%1.87%
Source: Indonesia Bureau of Statistics (BPS)
Slide 13
13 Cities are expanding beyond political boundaries (Example:
Jakarta Metro Area)
Slide 14
Performance of Agglomerations 14
Slide 15
15 Indonesias Rural Regions are Benefitting from Urbanization
15 Districts with better connectivity have higher income growth Not
all districts have good connectivity to Benjarmasin city
Slide 16
Population: 240 million Decentralization Big-bang started in
2001 33 Provinces and over 550 Districts / Municipalities
Population growth: 1.3% (annual) Urban population 54% 16 Indonesia
Decentralization
Slide 17
Since decentralization, provincial and districts governments
have experienced substantial increases in financial resources.
Local Governments now manage nearly 40% of total public
expenditures and carry out more than 50% public investments. 17
Resources and Responsibilities shifted to the local
governments
Slide 18
Own-source revenue (PAD) accounts for 17% of LG revenue. Local
governments rely heavily on inter-government transfers: Block
grants, DAU Capital grants, DAK Shared revenue, DBH Own-source
Revenue Still Low
More Autonomy and Money to LGs More money to LGs More Autonomy
Central government has insufficient information particularly on the
usage of intergovernmental fund and quality of delivered outputs
Lack on reporting of the utilization of intergovernmental fund
Inadequate monitoring and evaluation of intergovernmental fund
Local Government and Decentralization Program 20
Slide 21
Results focused Reward performance with grants Strengthen
Government Systems Central government verification Strengthen LG
Internal Controls Web-based Reporting Systems (WBRS). WBRS was
launched in May 2011 and districts submit their financial and
technical reports electronically. Budget transparency Ease of
reporting and monitoring 21 Key Features of LG Strengthening
Slide 22
Web-Based Reporting System (WBRS) Uploading Contract Data
22
Slide 23
WBRS Photograph of Output 23
Slide 24
Planning Framework 24 Planning Framework
Slide 25
DKI Jakarta Mass Rapid Transit Trans Jakarta Busway; 13
corridors already established (total 15 planned). Will be
integrated with MRT. The city has started the bidding for MRT.
Integration with commuter train system in greater metro regionLoop
Line Railway and Toll Road. Flood Mitigation Government focus for
this period to maintain flood canals to reduce the run off. Jakarta
Urgent Flood Mitigation Project (JUFMP). Has started ground
breaking for dredging canals. 25
Slide 26
Jakarta Improving Coordination Metropolitan management across
many cities. Jakarta metro area covers 7 cities and 3 Provinces.
Institutional coordination is a big challenge. The national
planning agency (Bappenas) is creating an institution to manage the
metro area. Bond issuance. DKI Jakarta is planning on issuing a
bond. There are still some challenges regarding regulations between
the MOF and MOHA. The bonds will finance a bus terminal, market,
low-income housing, and a hospital. 26
Slide 27
Surabaya (East Java) 27 Urban Transportation. Develop Tram way
(north-south) and Monorail (east- west). Pre-FS and demand modeling
supported by the Bank and CDIA. Currently the city is in the
process of starting a FS. City Planning Labs. The Bank is
supporting the city on developing a planning lab within the local
planning agency (Bappeko) and Dinas Human Settlement to improve
planning system and management of the city.
Slide 28
Surabaya Increasing Transparency E-Governance. Surabaya
received an award on early December 2013 for being one of the most
transparent cities in East Asia Pacific. This include
e-procurement, e-budgeting, and web-based reporting system for
intergovernmental transfer. Citizen Feedback. Complaint and
handling mechanism has been developed by the Mayor, to allow for
citizens to report on any issues in the city. This has been done
since 2011 through an online system, text message, radio station,
and even facebook. 28
Slide 29
Conclusion Strong ownership by city leaders and communities
Establish technical partnerships between cities, leading global and
Indonesian universities, and relevant national government
ministries Proposals and priorities for transformative investments
urban renewal, waterfront redevelopment, bus rapid transit, solid
waste treatment, and land readjustment schemes Each city conducted
detailed fiscal assessment 29
