Economic Impact and Current Results of Urbanization: The Case of Indonesia

Economic Impact and Current Results of Urbanization: The Case of Indonesia

Raeni Dwi Santy (Indonesia University of Computer, Indonesia) and Refi Mayasari Buhari (Pratama College, Indonesia)
DOI: 10.4018/978-1-5225-5646-6.ch047
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The growth of the urban population in Indonesia is commonly fast due to permanently inclinig urbanization flows. This chapter considers the most important factors of Indonesian urbanization and its positive and negative effects in current conditions to discover directions for modernization of the governmental role in regulation and control of urbanization processes. Special issues of this chapter are concentrated around the problem of urbanization's role in development of Indonesia (national and regional level), national labor and internal migration policy, and niveling disbalance between urban and rural areas. Finally, this chapter includes special conclusions and reccommendations for modernization of national and regonal programs oriented to optimise internal conditions of urbanization development in Indonesia that are based on the best achievements of international experience and use local Indonesian features of urbanization.
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The world faces a demographic problem in developing countries which are increasingly vulnerable. It is estimated that the world population has reached 7 billion. It will continue to increase until it reaches 9 billion. It is estimated that 70% of the world population will live in cities. (

Table 1.
Dynamic of urbanization (UNDP, 2010)
CountryUrban as % of Total PopulationCountryUrban as % of Total Population
Singapore  100.0Myanmar  33.6
Brunei  75.7Lao PDR  33.2
Malaysia  72.2Vietnam  30.4
Philippines  48.9Timor Leste  28.1
Indonesia  44.3Cambodia  20.1
Thailand  34.0Southeast Asia  41.8

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