Unlocking Urban Potential

This Survey highlights the role of urbanisation as a growth engine for Indonesia. With the country’s economy growing steadily, including by 5.11% in the first quarter of 2024, this Survey highlights the vital contribution of urban productivity to national income. Despite growth driven by non-tradable sectors and relatively strong consumption patterns due to Idul Fitri and general election events, urbanised areas face problems that hinder their productivity. Constraints in urbanisation—such as congestion, housing and pollution—decrease urban potential. Further, this Survey discusses institutional policies and alternative urban financing to improve urban productivity and foster sustainable urban development to help strengthen national economic growth.