Printed Book

Urbanization, human capital, and regional development: the indonesian experiences

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PROLOG

Indonesian government recently deal with many important problems and issues such as urbanization, human capital, and regional develop¬ment. Urbanization is one of the most common problems facing by developing countries and there is growing recognition among academi¬cians, policy makers, and development practitioners that urbanization can help stimulating growth and development. Currently, nearly half of Indonesian's population lived in urban areas. The main cause of rapid urbanization is arguably driven by industrial activities and economic growth in several major cities, while at the same time the availability of jobs in rural areas is not attractive to young people.
Empirical studies have revealed that there is association between the number of people living in urban areas and its economic growth (see for example Wang, et aI, 2012). But urbanization itself does not automati¬cally spur economic growth. For example, the level of urbanization in Indonesia is positively associated with economic growth but the rate of change of urbanization is negatively correlated with growth of econom¬ic output (Lewis, 2014).
Some other countries have gained benefits in the form of higher economic growth through the provision of formal employment and in¬creased labor productivity. For example, a study by World Bank (2012) found that in the period from 1970 to 2006 every 1 percent growth in the urban population correlates with an increase in GOP per capita of 6 percent in India and China, 8 percent in Vietnam, and 10 percent in Thailand. Unfortunately Indonesia only gets less than 2 percent of GDP growth for every 1 percent of urbanization due to congestion, pollution and disaster risk which is closely related to the lack of infrastructure facilities.
Despite its benefits, urbanization may bring negative consequences. Urbanization will have a negative impact if it is not accompanied by the provision of infrastructure. In this context, local governments that invest • more in infrastructure have proven to be better in coping with the neg-ative consequences of urbanization which in turn affect economic growth (Lewis, 2014). Moreover, there is a tendency that certain sectors are considered to be more important than other sectors in urban manage¬ment. This is inseparable from the government administrative structure itself that emphasizes on a more sectoral approach.
Unfortunately, deteriorating environmental conditions seems to be seen as a consequence of economic growth. As such, the economic, social and environmental impacts of urban development in Asia have now reached a critical condition (Roberts and Kanaley, 2006). In relation to this, the concept of sustainable urbanization has emerged as a key com¬ponent of urban development process. Sustainable urbanization requires the balanced development between environmental and economic benefits. A key strategy to achieve sustainable urbanization is to implement har¬monious development between urban, rural, and the surrounding regions.
Studies on urbanization have highlighted common themes related to urban development, including the provision of employment, provision of adequate infrastructure and services (such as energy, water supply and waste management); development of decent and affordable housing and settlements, and reducing poverty and improving slum areas. As three-quarters of the world's urban population now living in low-and middle-income countries, the detrimental impacts of urbanization may hit them hard. They are also the ones most at risk of being affected by the increased intensity and frequency of storms, floods, landslides, and heat waves caused by climate change. Indeed, urban development policies should not merely focus on physical development, but also on a number of pressing concerns such as the preservation of environments and the good governance practices.
Urbanization offers a wide-range of opportunities bur on the other hand, it raises potential risks. The key challenge is not to control the pace of urbanization because urbanization cannot be stopped, but rather to manage urbanization properly with adequate urban planning. If managed properly, urbanization offers many benefits. When evaluating the urban development policies, portfolio of assets of urban residents includes labor, human capital, housing, household relations, and social capital conditions need to be taken into account (Moser, 1998). Human capital, referring to the skills possessed by an individual for instance, is the main element in creating a more resilient community.
Research on the impact of urbanization to environment in Indonesian cities only receive little attention compared to economic, political, and security issues. Little is known about urbanization and even less is known about how to design policies and strategies to manage them. Managing the urbanization process and its consequences has not, to date, gained a central position in national policy debate. This book contributes to the Indonesian government's current urban and regional development issues. There are also practical policy recommendations that will come from this book.
The book consist of three chapters. The first chapter, explore the re¬lationship between urban planning/urban infrastructure expansion and sustainable development.
Article 1 provides an example how Semarang city government develop flood early warning system (FEWS) to minimize riverine flooding risk and to improve the ability of people to prepare for the risk of flood. It concludes that the active involvement of communi¬ties is important because they have better knowledge about their sur¬rounding areas including the major historical hazard events and who the most •vulnerable. A simple, less complicated, and cheap FEWS can en¬courage people to engage in DRR actions.
Article 2 Mahpud Sujai highlights the impact of urbanization on sustainable development. While urbanization brings positive impacts of urbanization such as the increase of GDRP and tourism-related activities, it also has negative consequences such as housing problems and waste management.
Article 3 describes lessons learnt on waste management and its potential to be used as an alternative of the energy sources. This case study highlights that support from the Central Government from the Budget and State Revenues is needed by the Provincial Government of Bali, Denpasar City Government, Badung Regency Government, Gianyar Regency Government, and Tabanan Regency Government in order to reduce waste problems in Denpasar City, Badung Regency, Gianyar Regency and Tabanan Regency (Sarbagita) which in turn could have a positive impact on the tourism sector.
Article 4 Donna Asteria, Herdis Herdiansyah, and Djoko Td Haryanto identify the environmental literacy among women based on their experiences in managing household waste. It argues that the key element to achieve sustainable development is through waste management from its source such as the household waste. The second chapter looks at the relatively recent emergence of the new forms of the "Future of Works". The three chapters in this part discuss how to prepare human capital to be ready for the workplace of the future.
Article 5, Yusuf Munandar is intended to contribute to the discussion on how to increase digital literacy in Indonesia and argues that the development of digital literacy should be done within a broad¬er framework of the Indonesian digital literacy implemented primarily through educational system.
Article 6 aims to identify problems in the vocational education system especially related to the high unemployment rate from these vocational school graduates. Central to this chapter is to identify the kind of incen¬tives from APBN that has been implemented and what incentives should be provided to improve the quality of vocational education.
Article 7, Rita Helbra and Wesly discuss the impact of automation on employ¬ment in Indonesia's manufacturing sector. Based on National Labor Force Survey (SAKERNAS) data the labor force in the manufacturing sector is still positive but since 2010 there has been a slowdown.
In the last chapter, the articles analyze how to finance infrastructure projects to speed up the economic development. In Article 8, Adelia Surya Pratiwi and Andriansyah describe the pressing challenges on infra¬structure financing in Indonesia amidst the nation's low fiscal capacity. They argue that asset securitization can provide sufficient rationale and magnitude to address this issue.
Article 9, Irwanda reviews the effec¬tiveness of fiscal incentives for the Tourism Special Economic Zones (SEZs). Taking Tanjung Lesung as a case study, this sub-chapter investi¬gates the factors hamper utilization of the existing fiscal incentives. It argues that there are two obstacles in utilizing fiscal incentives; the less supportive from the tourism industry and the less clarity to use such incentives.
Article 10, Mahpud Sujai identifies financing alternatives that can be used to develop sustainable tourism in Indonesia. The new innovative financing scheme such as public private partnership can be used to pro¬mote sustainable development in the tourism sector. And the last article reviews the role of government in inducing adaptation activities. Indo¬nesia is a country that is projected to experience severe impacts from climate change. Adaptation, therefore, is a necessity to improve the adaptive capacity especially to those engaged in the tourism industry. It shows that the government can encourage actors in the tourism industry to adapt to the adverse impacts of climate change by providing financial incentives.

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Ketersediaan

Informasi Detail

Judul Seri

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No. Panggil

B 336.3 ARI u

Penerbit

Jakarta : PT. Gramedia Pustaka Utama Publishing., 2018

Deskripsi Fisik

xvi, ilus.: 286 hlm.; 20 cm

Bahasa

English

ISBN/ISSN

978-602-06-1849-4

Klasifikasi

336.3

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

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Info Detail Spesifik

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Pernyataan Tanggungjawab

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Versi lain/terkait

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