“This is a timely book addressing challenges facing Indonesia as 70 percent of our population will be urbanized in the near future and the urgent need to develop our human capital as 50 percent of our population is below 30. It is a must read and reference for all, especially for policy makers as we think through how to ensure development will be achieved in a balanced way throughout Indonesia’s regions.” —Mari Elka Pangestu Minister of Trade, Republic of Indonesia 2004-2011 Minister of Tourism and Creative Economy, Republic of Indonesia 2011-2014 Professor, Faculty of Economy and Business, University of Indonesia “Urbanization, human capital and regional development demography are very important issues for Indonesia. How the Indonesian economy cope with that? This execellent book written by researchers from Fiscal Policy Agency of Ministry of Finance, Republic of Indonesia will help you to walk through this question.” —Muhammad Chatib Basri Minister of Finance, Republic of Indonesia, 2013-2014 Professor, Faculty of Economy and Business, University of Indonesia “We hope this book will contribute to the thoughts of the Ministry of Finance amid the scarcity of literature on development issues, especially from a government perspective. Hopefully, the publication of this book can enrich the knowledge that will benefit Indonesia’s development in the future.” —Prof. Suahasil Nazara Head of Fiscal Policy Agency Ministry of Finance of the Republic of Indonesia

Indonesia has urbanized rapidly since its independence in 1945, profoundly changing its economic geography and giving rise to a diverse array of urban places. These places range from the bustling metropolis of Jakarta to rapidly emerging urban centers in hitherto largely rural parts of the country. Although urbanization has produced considerable benefits for many Indonesians, its potential has only been partially realized. Time to ACT: Realizing Indonesia’s Urban Potential explores the extent to which urbanization in Indonesia has delivered in terms of prosperity, inclusiveness, and livability. The report takes a broad view of urbanization’s performance in these three key areas, covering both the monetary and nonmonetary aspects of welfare. It analyzes the fundamental reforms that can help the country to more fully achieve widespread and sustainable benefits, and it introduces a new policy framework—the ACT framework—to guide policy making. This framework emphasizes the three policy principles of Augment, Connect, and Target: • Augment the provision and quality of infrastructure and basic services across urban and rural locations • Connect places and people to jobs and opportunities and services • Target lagging areas and marginalized groups through well-designed place-based policies, as well as thoughtful urban planning and design. Using this framework, the report provides policy recommendations differentiated by four types of place that differ in both their economic characteristics and the challenges that they face— multidistrict metro areas, single-district metro areas, nonmetro urban areas, and nonmetro rural areas. In addition to its eight chapters, Time to ACT: Realizing Indonesia’s Urban Potential includes four spotlights on strengthening the disaster resilience of Indonesian cities, the nexus between urbanization and human capital, the “invisible†? crisis of wastewater management, and the potential for smart cities in Indonesia. If Indonesia continues to urbanize in line with global historical standards, more than 70 percent of its population will be living in towns and cities by the time the country celebrates the centenary of its independence in 2045. Accordingly, how Indonesia manages this continued expansion of its urban population—and the mounting congestion forces that expansion brings—will do much to determine whether the country reaches the upper rungs of the global ladder of prosperity, inclusiveness, and livability.

This book explores spatial development patterns and policies in Indonesia. It reviews national development, spatial impacts of policies and offers guidance for the future.

Monograph on the relationship between overurbanization and rural area poverty in developing countries - examines the impact of rapid industrialization on urban development, rural migration and unemployment, etc., and discusses short term and long term rural development policies as well as obstacles to their implementation. Graphs.