Indonesia Urbanization

Definition of urbanization - There is a link between urbanization and socio-economic infrastructure. Indonesia is also a developing country and a New Industrialize Country (NIC) which at first had a small amount of development in urbanization. Urbanization is a change from agriculture industry to a big light and heavy industries, in which it also changes the situation in the urban and rural area. As stated by Firman (2008) urbanization cause by three factors which is natural increase, rural-urban migration and reclassification. But in this study it only focuses on urbanization growth that affected socio-economy in selected areas in Indonesia.

Background of the population in Indonesia - In the year of 2000, Indonesia’s population was estimated

Jakarta Metropolitan Area, who benefited the most because of the strong bond with outside trade and market. Small cities affected due to weak bond from foreign trade, so there is a spatial growth of urbanization in Indonesia. Foreign expenditure in Indonesia point on low paid worker, this is why Jakarta became an attractive place to make an investment. A total number of US $16,759.3 million has been calculated from global to local investment. The first problem was when Indonesia economic affected when oil prices fell, which cause them to introduce deregulation policy in order to restore back what they had lost and this policy brought positive impacts on the Indonesia’s economic by mid-1990s. Although this policy focus on economic matters, but it creates a different impacts on urban and rural development. This will happen if they only concentrate on economic development and did not focus on social and politic issue. Inefficient government also makes the policies worst as they only know to introduce the law, but they did not able to run it

According to Mamas, Jones and Sastrasuanda (2001, p. 6), in large cities such as Indonesia, a major factor of population growth is the movement of people from urban areas to the fringe areas. Reclassification of rural to urban areas is also another factor that causes a high number of population growths in Jakarta. Urban changes in Indonesia can be seen especially in metropolitan areas from the increase of the number of people who live in the urban area and due to the high number of people in the big city, so they start to move away from it which causes urban belts develop around the big cities. There are a variety of economic activities in the urban belt, including agricultural and industrial