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“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
This is the 13th book published by the Indonesian Regional Science Association (IRSA). Publication of books containing selected papers authored by its members has been one of IRSA main activities since its first annual meeting in 1998. I would like to appreciate the efforts of the editorial team for preparing the publication ofthis book. The team selected papers written by IRSA members. Most of those articles were selected from the papers presented at the 12th IRSA International Conference on “Political Economy of Regional Development in Indonesia”. This conference was held on 2-3 June 2014 in Makassar, South Sulawesi, and was organised in collaboration with the Faculty of Economics, Hasanuddin University, and the National Development Planning Agency (BAPPENAS). Some other articles are papers presented at several seminars related or held in collaboration with IRSA in 2014. When this Foreword was written, Indonesia under the Joko Widodo (Jokowi) Administration was experiencing difficult time both politically as well as economically. Jokowi has entered its eighth month of his term of office but his administration apparently has not been able to run well as expected. To make it even worse, the economic growth in many countries, including Indonesia, has been slowing down since early this year. With that background and in the spirit of contributing for the development of the nation, IRSA has chosen the general theme of this 13th book “Regional Development in Indonesia: Some Notes for the Jokowi Government”. Finally, I would like to thank the authors of the papers published in this book and the organising committees of the 2014 IRSA Conference and other seminars organised in collaboration with IRSA. I do believe thatthis book is beneficialforthe public policy forregional development in Indonesia. ------------ -UnpadPress- #Unpad #60thFEBUnpad
Growing global concern about the environmental costs of economic development resulting from natural resource extraction has sparked interest in a new economic paradigm known as ‘green development’. Indonesia is currently experimenting with the ‘green development’ paradigm and trying to define its meaning and better understand its potential applications. So far, this process has meant a refinement and realignment of existing policy measures that seek to reduce deforestation and GHG emissions. These regulations often face contradictory economic development strategies.
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.