Speaker
Description
This research aims to explore appropriate metropolitan management mechanisms through the analysis of Indonesian cases. Indonesia has experienced rapid urbanization over the past few decades. Before the turn of the century, nearly 60% of Indonesia's population still lived in rural areas. However, today, the urban and rural population ratios have completely reversed. By 2023, the urban population accounted for almost 60% of the total population, and it is expected to exceed 70% by 2045. Indonesian cities are currently facing major challenges, such as creation of livable urban environment while coping with rapid urbanization and sprawling, economic development and job creation, and provision of the public and social services to meet the needs of the growing urban population.
As urbanization progresses, large metropolitan areas have emerged, making metropolitan management an important issue in Indonesia's urban sector. Due to the benefits of agglomeration economies, metropolitan areas are generally recognized as drivers of the national and regional economy. However, these areas also experience negative externalities, such as traffic congestion, pollution and environmental degradation, insufficient affordable housing, and a lack of open space. Recognizing the importance of metropolitan areas, the National Spatial Plan of 2008 defined a "metropolitan area" as an urban agglomeration with a population of over one million that is functionally integrated. Ten metropolitan areas were officially identified under this framework. Recently, metropolitan management has received renewed attention, particularly with the enactment of Law No. 2 of 2024 for the development of the Jakarta Metropolitan Area following the transfer of the national capital in Nusantara, Kalimantan. Promoting regional development depends on building systems that foster cooperation and coordination among local governments within a metropolitan area. This has sparked interest in metropolitan management and its institutional framework, especially from the perspective of regional development. Examples of ongoing initiatives include the development of a new metropolitan area integrating Nusantara, Balikpapan, and Samarinda in East Kalimantan, and the Rebana Area Development Project in West Java, which is one of the national strategic projects.
On the other hand, Indonesia has implemented a drastic decentralization policy known as the “Big Bang Decentralization” since the late 1990s. Following the enactment of Law No. 22 and Law No. 25 of 1999, significant authority was devolved to districts (regencies and cities) in areas such as economic development, spatial and infrastructure planning, environmental management, and public service provision. In 2004 and 2014, adjustments were made to clarify the division of functions and relationships between provinces, districts, and villages. This involves strengthening the role of provinces and implementing fiscal decentralization at the village level through the establishment of the Village Fund. After several modifications and the accumulation of experience, recent research has revealed that decentralization in Indonesia has contributed to the alleviation of regional disparities to some extent. However, an unintended consequence of decentralization has been the proliferation of local governments, including new districts and provinces, leading to a trend of fragmentation, often based on political interest. In essence, Indonesia’s decentralization framework, while strongly empowering local governments, does not necessarily encourage cooperation between neighboring local governments.
Thus, the objective of this research is to examine metropolitan mechanisms that support intergovernmental cooperation for regional development within Indonesia’s decentralized system. This is achieved through three case studies: the Jakarta Metropolitan Area, the new national capital metropolitan area, and the Rebana Area in West Java. These case studies analyze the specific issues faced by each metropolitan area, such as public transportation systems in the Jakarta Metropolitan Area, the establishment of the new capital and its broader impacts, and regional development with a focus on industrial growth in the Rebana Area.
| Best Congress Paper Award | No |
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