Rapid Economic Development of Jakarta in the 1990s

Fig 1. Map showing the different cities in Jabodetabek (JMA)

(Reference: Map from Urban Development Challenges, Risks and Resilience in Asian Mega Cities, 2015 on pg. 422)

As shown on the map above, Jakarta was a part of JMA consisting of other cities that held the largest concentration of urban population in Indonesia. In the early 1990s, Jakarta was going through a major urban transformation. Development was primarily focused on real estate from high-rise residential to shopping malls and improving transport systems such as roads and highways for the rising popularity of automobiles. Areas that are located near major highways such as the were targeted for development, and even paddy fields in the rural sides of the city were completely replaced by urban infrastructures for “new town development” [2].

Hence, many of these built in this time period had “high profit seeking motive, rather than delivering better services to the citizen.” (Singh, 2015). This indicates the government’s vision in revamping Jakarta as a megacity rather than aiming to improve the existing conditions of the city such as the kampung. As though Jakarta was going through a new phase of modernisation under Suharto’s presidency.

As a result of Jakarta’s rapid urban development, this led to many property developers loaning from the banks. However, when the Asian economic crisis (IMF) dramatically hit in 1997, this led the finance sector of Jakarta to fall due to these loans. This impacted the property development projects where many could not proceed due to insufficient fund and had to be left incomplete, resulting in abandoned lands. Consequently, there was a significant decrease in property developments, with a rise in unemployment resulting a major crisis.



  1. Singh, R.B. “Jabodetabek Megacity: From City Development Toward Urban Complex Management System.” Chap. 22. In Urban Development Challenges, Risks and Resilience in Asian Mega Cities, 2015. 421-445.    https://www.researchgate.net/publication/277425588_Jabodetabek_Megacity_From_City_Development_Toward_Urban_Complex_Management_System
  2. Firman, T. “The restructuring of Jakarta Metropolitan Area: A “global city” in Asia.” In Cities The International Journal of Urban Policy and Planning, 1998. 229-243

1 Comment on “Rapid Economic Development of Jakarta in the 1990s

  1. You made a good analysis of why Kampung was neglected by the government and how critical challenges were faced by Kampung residents. However, based on your statement, you could add more introduction of context to make the narratives more comprehensive and logically. For example, you can answer what boomed the economy in Jakarta during 1990s and led to a rapid urbanization. What is the role low-income people in this urbanization? What happened to the Kampung after 1997 financial and then social crisis as many real estate projects were suspended? It is good to choose an example village to present the bad situation under such political and natural environments. However, what was the position of this one among the whole urban villages? Is it overspecialized and could it represent the majority conditions?

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