Urban Governance Challenges and Reforms in Indonesia: Towards a New Urban Agenda

In recent decades, Indonesia has experienced rapid urbanization and economic growth, and since 2012 its urban population has grown by more than half. Since 2001 it has also transformed from being a highly centralized country to a highly decentralized one. The ensuing proliferation of local governments and municipalities poses new challenges and sets the context for contemplating the future trajectory of Indonesian urban governance. This chapter analyses a set of governance reforms the Indonesian government is implementing, and highlights some governance challenges in regard to improving urban planning and policy. It then also discusses Indonesia’s challenges in implementing the New Urban Agenda (NUA). The Indonesian government aims to adopt the NUA for guiding nationwide sustainable development goals (SDGs). Guided by the NUA, Indonesia has placed spatial planning at the centre of urban governance, with a mission to build inclusive, safe, resilient, and sustainable cities. Only time will tell if this set of governance reforms that Indonesia has launched could overcome the persistent challenges to its urban planning practices.