Globalization 2 7 TOWARDS AN INDONESIAN URBAN LAND DEVELOPMENT POLICY

Tommy Firman is a senior lecturer in and past chair of the Department of Regional and City Planning at the Institute of Technology Bandung (ITB),Indonesia. He holds a Ph.D. in Urban and Population Geography from the University of Hawaii and a SPURS (Special Program for Urban and Regional Studies) Diploma from Massachusetts Institute ofTechnology (MIT). He has also served as an Associate Dean ofCivil Engineering and Planning at ITB. Indonesia, the fourth most populous country in the world (following China, India and USA), which recently passed the 200 million mark, is currently experiencing a rapid transformation from an agrarian-based economy to industrial­ based economy. The national economic structure is undergoing a shift in its emphasis, from the primary sector, i.e. agriculture, to the sectors of industry and services. The sector of agriculture, which in 1990 accounted for 20.2% towards the national Gross Domestic Product (GDP), will contribute only 10.5% by the year 2005. On the other hand, the sector of industry, which contributed only 27.3% towards the GDP in 1990, will share 42.5% by the year 2005 (Finnan, 1997a). This basically indicates that the role ofcities as centers for industrial and service activities will be getting more important in the future. In fact, major cities, such as Jabotabek (Jakarta Metropolitan Area), Surabaya, Bandung, and Medan have been growing rapidly as the main centers of secondary and tertiary economic activities in Indonesia. This will also affect the growing needs of the community for urban services, which will drive the increasingly important role of the urban areas as service centers.