Introduction

Indonesia is the worlds fourth most populous country after China, India, and the United States of
America, with population of more than 230 million people. In 2008, for the first time in Indonesias
history half of the countrys population resides in urban areas. By 2025 it is estimated that about 65
percent of Indonesias population or 180 million people will occupy urban areas, primarily in 16 large
and metropolitan cities.
Regrettably, such urbanization creates severe environmental degradation in urban areas, particularly in
large cities and their surroundings. The needs of space for shelter has led to substantial loss of green
open space and been generating unwanted development of slums area in every corners of the city. In
addition, the excessive demand for transport that grows beyond the existing network capacity has
caused severe traffic congestion, loss of productivity, and inefficiency of energy. Severe air pollution
and water contamination from domestic and industrial waste are also common in our cities.
This environmental degradation is compounded by the fact that millions of countrys population are
still in acute poverty with great deficit of basic infrastructure. Urban poverty remains a big issue for
many developing countries; they mostly live under substandard facilities without sufficient access to
sanitation and clean water infrastructure.
Indonesia clearly needs a set of clear policies and programs if we wish to put urban development path
into the sustainability. This consideration brings us to consider a legal basis as top priority of our
responses to deal more effectively with rapid urban development.
For this purpose, several laws have been promulgated: the Building Law (28/2002) and the Spatial
Planning Law (26/2007). But, apart from these laws, there are established sectoral laws, such as law
on Water Resources Management (7/2004), Road Development (38/2004), Solid Waste Management
(18/2008), and National Policy and Strategy for Housing and Settlement (KSNPP) in order to provide
operational and sectoral basis for urban related improvement and development programs.
From Indonesia Urban Development Policy, I found the following indicators for the sustainability of
the policy from different perspectives;
Dimensions
Environment

Social

Economic

Indicators
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
1.
2.
3.

Waste Management System

Open Green Space
Green Transportation System
Pollution Emission Control
Land Use / Zoning Control
Access to Housing and Related Services
Access to Basic Health Services
Access to Basic Education
Migration Control
Conservation of Cultural Heritage
Employment Creation
Taxation System
Trade & Commerce System and Banking and Finance System

Environment
1. Waste Management System
Urbanization directly contributes to waste generation, and unscientific waste handling causes health
hazards and urban environment degradation. Waste management system is defined to include refuse
from the households, non-hazardous solid waste, discarded by the industrial, commercial and
institutional establishments, market waste, yard waste and street sweepings which are collected by the
municipal authorities for disposal. Waste Management System, broadly deals with post-consumer
waste, in prevention, treatment, recycle, reuse and disposal. It is very important for sustainable
development.
Analysis of the policy:
Article 28 H paragraph (1) of the Constitution of the Republic of Indonesia granted right for every
person to acquire good and healthy environment. The constitution gave consequences to the
government to provide public service in waste management. It also bring about legal consequences
that the government is the entity which has the authority and responsibility on waste management.
Based on this, there is law about waste management in Indonesia. The law is Act of the Republic of
Indonesia number 18 year 2008. In article 5 and 6 mention that the task of government and the local
government to ensure waste management will be implemented in a good manner and based on
environmentally sound management. The task of the government and the local government, as stated
in the article 5, are as follows:

Developing and increasing the public awareness on waste management;

Conducting research, developing technology for reducing and handling of waste;
Facilitating, developing, and conducting efforts to reduce, handle, and utilize waste.
Carrying out waste management and facilitating in providing the facility and infrastructure for
waste management;
Encouraging and facilitating the enhancement of the benefit of waste management outcome.
Facilitating the application of specific local technology that developed in the local society in
reducing and handling of waste; and
Conducting coordination amongst government institutions, society, and industry towards an
integrated waste management.

In article 14 is also mentioned that every producer should labeled or put symbol, on the packaging
and/or their products, related to waste reduction and handling. In this law is also mentioned about
administrative sanction if stake holders of waste management system do not follow this law.
This law is very good to enhance sustainable development because there is clear policy about waste
management system in this act. But, the most important want is related to the implementation of this
law. In the implementation of integrated and comprehensive waste management, fulfilling the right
and the responsibility of community, as well as the task and the authority of the government and local
government to provide public service, it is necessary to have legal basis in the form of act.

2. Open Green Space

Response to urbanization is one of the important issues in sustainable development. As cities are keep
on growing because of urbanization, more and more cities are becoming congested. To make cities
liveable for the citizen and to make their life beautiful, it has been the constant endeavour of the
government to encourage for open green space, keep city pollution within the limit and to create
sufficient green belt. There is needed of allocation and usage of open green space.
Analysis of the policy:
The Spatial Planning Law in Indonesia (Law No.26/2007) requires spatial plans of the cities to
include plans on allocation and usage of green space. The law stipulates that at least 30% of the area
of the city should be secured as green space (park, green path, cemetery, etc.) to which responsible
officials seem to be struggling in dealing with the task. The spatial planning law requires that the
planning, utilization and control of urban space involve all stakeholders in the process, by applying
the principle of efficiency and effectiveness, transparency and accountability, which are principles of
good governance.
The policy is good because it is already stated the target open green space area to be achieved of city.
It is very good for sustainable development. Since the target is already stated in the law, it remains a
problem because the existing condition shows that most cites in Indonesia only have 15-20% of open
green space area. How the government can achieve the target is very challenging. This will be a new
exercise for most of the local governments.
3. Green Transportation System
The term green transportation system came into use as a logical follow-on from sustainable
development. Sustainable green transportation systems make a positive contribution to the
environmental, social and economic sustainability of the communities they serve. Transport systems
exist to provide social and economic connections, and people quickly take up the opportunities
offered by increased mobility. The advantages of increased mobility need to be weighed against the
environmental, social and economic costs that transport systems pose.
Analysis of the policy:
The Spatial Planning Law (Law No.26/2007) and Road Development Law (Law No.38/2004) in
Indonesia requires spatial plans of the cities to include plans on allocation and usage of network of
public transport and foot traffic network. From this law, there are several policies related to support
sustainable urban green transportation system by encouraging the use of Development of public
transport; Development of pedestrian facilities; Development of bike line; Development of facilities
for disable person.
These policies are good for sustainable development. In terms of harmony with nature and
environment, it will be more parks and pedestrian friendly environment. These policies will improve
urban mobility and accessibility of the public and discourage the use of private cars.

4. Pollution Emission Control

Air pollution in metropolitan and medium-size cities has become a chronic issue as a threat to the
urban peoples health and economic. The problem is due mainly by population concentration, a drastic
increase in traffic volume, exhaust emission from motor vehicles, and industries.
Analysis of the policy:
There is program in Indonesia called The Blue Sky Cities Program. The vision of this program is
Indonesian Clean Air at the year of 2020. The objective is to improve urban air quality through
implementation of environmentally sustainable transport policy. Based on this program, there is a
working document called National Strategy and Action Plan for Urban Air Quality Improvement. It
provides a basis for various institutions to implement actions that directly or indirectly will improve
urban air quality. One of the actions of this program is awareness raising, campaign and education on
air quality program.
The Blue Sky Cities Program is good because it gives attention on sustainable transportation policy.
In metropolitan city, transport sector is the main sector for causing pollution. It gives proportion to air
pollution about 60 to 80%. But there is also pollution from another sectors like industry and
household sectors. This program covers only transport sector. Since sustainable development is also
related to economic and social sector. The program should cover also industry and household sector as
causes of pollution. So, it will give more benefit for sustainable development.
5. Land Use / Zoning Control
Governments use land-use planning to manage the development of land within their jurisdictions. In
doing so, the governmental unit can plan for the needs of the community while safeguarding natural
resources. It is the systematic assessment of land and water potential, alternatives for land use, and
economic and social conditions in order to select and adopt the best land-use options.
Analysis of the policy:
There are 2 laws related to land use/zoning control: The Spatial Planning Law (26/2007) and The
Building Law (28/2002). These laws provide authority to provincial governments and of district
governments in land use planning. It also provide some new ways for enhancing development control
including zoning, planning permits, implementation of incentives and disincentives, including
administration and criminal sanction. The laws also acknowledge the importance of public
participation in land use planning. The laws provide more detailed regulations including rights,
obligations and the forms of public participation in land use planning.
These policies are very important for sustainable development. Land use/zoning control is very
important not only for environmental aspect but also social and economic sector. Proper land use for
market, commercial area and industry is very important for economic sector. Proper residential and
institutional is related to social sector. A comprehensive plan with these three aspects should be
considered related to sustainable development. It should provide a vision for the future possibilities of
sustainable development in urban area.

Social
1. Access to Housing and Related Services
Sustainable urban development through expanding equitable access to housing and related services is
very important. Decent, energy efficient homes contribute to social cohesion, improved health and
better use of fossil fuels and other resources. Housing plays a key role in urban renewal and local
regeneration. It should be the goal of any government to offer everyone the opportunity of a decent
home.
Analysis of the policy:
Housing and settlements problem in Indonesia could not be separated from society conditions and
government policies. So Ministry of Settlements and Regional Infrastructure decided to arrange
National Policy and Strategy for Housing and Settlements. This new policy is Ministry of Settlements
and Regional Infrastructure Decree No. 217 / KPTS / M / 2002 about National Policy and Strategy for
Housing and Settlements.
Based on this policy, Indonesia is trying to change the slums into more civilized shelters by
developing 1000 tower policy for what we called RUSUNAWA (rented flat unit) and RUSUNAMI
(owned flat unit). A housing finance policy has been formulated to increase the urban poors
affordability in the form of housing subsidy through banking and non banking institutions. On top of
this, since 2004 Indonesia Government has successfully managed to facilitate the development of
more than 360 thousands subsidized housing units that particularly targeted to the low-income
households in the urban area.
This policy is trying to provide adequate and affordable housing particularly poor people. This policy
particularly housing finance facility tries to make urban poors affordability for housing. It is very
important in developing a pro-poor protection. Adequate and affordable housing will bring social and
economic stability. So this is very good in terms of sustainable development.

2. Access to Basic Health Services

Human beings are at the centre of concerns for sustainable development, and that they are entitled to a
healthy and productive life, in harmony with nature. The goals of sustainable development can only
be achieved in the absence of a high prevalence of debilitating diseases, while obtaining health gains
for the whole population requires poverty eradication. There is an urgent need to address the causes of
ill health, including environmental causes, and their impact on development, with particular emphasis
on women and children, as well as vulnerable groups of society, such as people with disabilities,
elderly persons and indigenous people.
Analysis of the policy:
The intentions of Indonesian central government to protect all groups of Indonesian citizens are
stipulated into the Law no 40/2004, called the National Social Protection Law (SJSN). There is
mentioned to prioritize healthcare spending. The issuance of Law No 40 year 2004 actually has
extended the coverage of social protection, especially health protection. During these years

government has already increased healthcare spending. Much of that spending increase will go
towards supporting a new health insurance scheme called National Health Protection Program
(Jamkesmas). Set up in 2008, it is an expansion of an existing scheme called Askeskin that was
introduced in 2004. Askeskin was targeted at Indonesias poorest citizens, but has grown under the
new Jamkesmas format to include many of the countrys near-poor, taking in 76 million people, or
one third of the population.
This policy is needed for social aspect in sustainable development. This policy tries to integrate the
health concerns, particularly most vulnerable populations, into strategies, policies and programmes for
poverty eradication and sustainable development. But it remains question in terms of economic sector
particularly in terms of financing this policy. What role the private sector will play in providing
services under the scheme, and how the government will manage the escalating costs.

3. Access to Basic Education

Access to Basic Education is an essential tool for achieving sustainability. People around the world
recognize that current economic development trends are not sustainable and that public education is
one of the keys to moving society toward sustainability. Two of the major issues in the international
dialog on sustainability are population and resource consumption. Increases in population and
resource use are thought to jeopardize a sustainable future, and education is linked both to fertility
rate and resource consumption.
Analysis of the policy:
The right of education for all in Indonesia has been mandated in some articles of the Indonesian
constitution. Article 31 the 1945 Constitution states that Every citizen is entitled to basic education
and the government shall be obliged to finance such education. Similarly, in article 34 of law 20 of
2003 on the National Education System, it is stated that The central government and local
governments shall guarantee the implementation of compulsory basic education at least to the level of
basic education without charging any fees. To fulfill this mandate, the Indonesian government
emphasizes the implementation of the compulsory basic education program for all children. In July
2005 the Government of Indonesia introduced the Free Basic Education policy (FBE). Under this
policy school fees are to be abolished in primary and junior secondary school. The FBE is to support
the 9 year mandatory basic education program by relieving the poor from education costs.
This policy is targeting all of Indonesian particularly poor people to reach basic education. In terms of
sustainable development this is policy is important because of abolishing school fees would indeed be
effective in increasing enrolment amongst the poor. This policy is linked both to fertility rate and
resource consumption. Educating females reduces fertility rates and therefore population growth. By
reducing fertility rates and the threat of overpopulation a country also facilitates progress toward
sustainability.
4. Migration Control
Migration has been recognized for its increasing importance and relevance to the social, economic and
environmental dimensions of sustainable development, as well as for its influence on all regions of the
world. Carefully managed migration can promote economic growth and innovation in destination

locations, and poverty reduction in origin locations. At the same time, while migration can to a certain
extent offset labour surpluses in sending countries, receiving countries are taking on associated
multiple challenges, including managing labour markets. These challenges will require countries to
create policy and legal frameworks that recognize the patterns and drivers of migration, as well as the
characteristics of migrants themselves.
Analysis of the policy:
The transmigration program is the policy of Indonesia government to move landless people from
densely populated areas of Indonesia to less populous areas of the country. The stated purpose of this
program was to reduce the considerable poverty and overpopulation on Java, to provide opportunities
for hard-working poor people, and to provide a workforce to better utilize the natural resources of the
outer islands. The stated purpose of the program, according to proponents in the Indonesian
government and the development community, was to move millions of Indonesians from the densely
populated inner islands of Java, Bali and Madura to the outer, less densely populated islands to
achieve a more balanced population density.
This policy would alleviate poverty by providing land and new opportunities to generate income for
poor landless settlers. It would also benefit the nation as a whole by increasing the utilization of the
natural resources of the less-populous islands. This is very good not also for sustainable urban
development but also for sustainable national development.

5. Conservation of Cultural Heritage

The rapid physical development in the cities has put great pressures to the historic urban areas. It has
caused deterioration, or even, loss of historic fabric. Heritage, bequeathed from the generations that
precede us, is the vital foundation and initial capital for the development of the Indonesian nation in
the future, and for these reasons, must be conserved and passed along to the next generation in good
condition, without loss of value, and if possible with an enhanced value, to form heritage for the
future sustainable development.
Analysis of the policy:
In 2003, Indonesia Network for Heritage Conservation (INHC) in collaboration with International
Council on Monuments and Sites (ICOMOS) Indonesia and Ministry of Culture and Tourism in
Indonesia Heritage Year 2003 (theme: Celebrating Diversity) declared Indonesian Charter for
Heritage Conservation 2003. The hope was expressed that the shared cultural heritage could be
preserved and passed on to next generations in good condition, without loss of value. Whenever
possible, heritage objects should be given a new use adapted to the modern age, and with that, a new
lease of life.
It will of course take several years for a substantial group of government officials with awareness
about heritage conservation to arise, but the first steps have been taken from this policy. This policy is
mostly related to social and economic sector. By preserving it could be as a value for next generation.
Moreover, it will bring good impact related to tourism from cultural heritage.

Economic
1. Employment Creation
In terms of sustainable development, there is a challenge to develop policies and strategies to generate
decent and productive jobs. Recognizing the role of the private sector for growth, employment
creation and poverty reduction, countries need to engage in a process of sound economic reform,
particularly tackling the promotion of an enabling business environment and the adequacy of the
education system, which the labor market needs.
Analysis of the policy:
In the past three years, the Government of Indonesia has pursued an aggressive minimum wage
policy, sought to introduce wide-ranging new labor protection laws and, strengthened the union
movements voice in industrial relations. New safeguards regarding worker rights and more
systematic regulation of minimum labor standards have created a much fairer environment for formal
sector workers than in the past. However, many of the new regulations seeking to protect workers go
well beyond the affirmation of minimum standards and basic rights.
This policy has positive and negative impact in terms of sustainable development. In positive impact
we can see that it will give benefit for labor protection. But it is also negative impact regarding to
employment growth sector. Aggressive minimum wage policy can bring negative impact particularly
in business sector. If the government requires that certain workers be paid higher wages, then
businesses make adjustments to pay for the added costs, such as reducing hiring, cutting employee
work hours, reducing benefits, and charging higher prices. Some policymakers may believe that
companies simply absorb the costs of minimum wage increases through reduced profits, but that's
rarely the case. Instead, businesses rationally respond to such mandates by cutting employment and
making other decisions to maintain their net earnings. These behavioural responses usually offset the
positive labour market results that policymakers are hoping for.
2. Taxation System
Taxation system is needed to increase tax revenue so that can promote sustainable economic growth.
Along with economic growth, income inequality is an important tax policy objective. Taxes are
instruments for the redistribution of income and welfare between different household groups.
Normally, a tax system is considered to have a positive effect upon income distribution and welfare if
lower-income groups pay less than higher ones, as exemplified in many countries progressive income
tax policies. A good tax system should be used as a policy instruments not only to protect the lowincome household from paying an undue amount of tax but also to reduce the number of households
below the poverty line.
Analysis of the policy:
The main Indonesian Tax Law is General Provisions and Taxation Procedures Law (Law No. 6/1983,
amended by Law no.16/2000). This law provides who exactly is obligated to pay tax.
Individuals or statutory bodies which meet relevant criteria stipulated, including certain tax collectors
or withholders. Statutory bodies are defined by Indonesian Taxation Law as groups of persons and/or
capital which constitute a unit. These are more clearly defined as such entities undertaking or not
undertaking businesses, covering limited liability companies, limited partnership companies, other
companies, state or regional administration-owned companies in whatever names and forms, firms,

joint companies, cooperatives, pension funds, partnerships, groups, foundations, mass organisations,
social and political organisations or organisations of the same type, institutions, permanent
establishments and other forms of statutory bodies. Companies and entrepreneurs are defined in the
context of Indonesian Taxation Law as those in their business activities or works/jobs produce goods,
import goods, export goods, undertake trading businesses, utilize goods, provide or utilize services
from regions outside the customs area.
There are several specific taxes as the continuance of General Provisions and Taxation Procedures
Law (Law No. 6/1983, amended by Law no.16/2000). But it is the main or general law for taxation
system in Indonesia. This law only mentions about general provision about tax. More detail about tax
like some typical of tax and also the amount of tax has its own specific law. This law is good because
it mentions clearly who exactly is obligated to pay tax. It is important particularly in terms of
sustainable economic growth and sustainable development. It is also important not only for economic
dimension but also social dimension. Good taxation system will reduce the number of household
below the poverty line by distributing tax money in appropriate way for development.

3. Trade & Commerce System and Banking and Finance System

The cost of living in the urban continues to rise. Land is expensive and rents are high. Industrial
development and the construction of new housing are usually undertaken on the outskirts, while
commerce and banking remain concentrated in the urban centre. It will give impact for sustainable
urban development. The is a need of policy to become the sole regulatory agency for all financial
services institutions, which include securities companies, insurance companies, pension funds,
financing companies, and banks.
Analysis of the policy:
Indonesia established the Financial Services Authority (the FSA) through Law No. 21 of 2011. The
establishment of an independent body overseeing the financial sector had been mandated in a 2004
amendment to the law on Indonesias central bank. Elucidation of Article 4 in this law, the Financial
Services Authority is expected to enable support of the interest of the national financial services sector
that can enhance the national competitiveness. Furthermore, the Financial Services Authority must
enable the safeguard of the national interests including, inter alia, human resources, management,
controls, and ownership in the financial services sector with due consideration of the positive aspects
of globalization. Moreover, FSA function is to protect the interests of Consumers and the public
includes the protection from any violation and criminal offenses in the financial sector, such as
manipulation and various evasions in the financial services activities. In article 5, it is mentioned that
The Financial Services Authority shall have the functions to implement the integrated regulatory and
supervisory system for the entire activities of the financial services sector.
This law is an unprecedented law because it governs the comprehensive financial system in Indonesia.
It is very good because this law tries to cover financial system comprehensively. It will give impact
not only for economic dimension, but also for social dimension. As mentioned above that the cost of
living in the urban continues to raise then it will give impact for sustainable development. Good
financial institution is one sector that could make it sustain. Trade, commerce, bank, and all other
financial system should be controlled under good policy. Otherwise it will give bad impact
particularly in this globalized era.

Conclusion
These strategic laws and policies are mutually complementary, and evidently signify important steps
in urban policy in Indonesia. However, solid regulation and strict law enforcement are further
necessary in order to maintain urban development in the right direction.
The strategic vision of the policies in general is to achieve safe, comfortable, productive and
sustainable urban development. Productive and sustainable means that development should provide
effective and efficient infrastructure to facilitate the production and distribution process of the
economy to increase added value, achieve community welfare and enhance competitiveness; while at
the same time provide better quality of environment not only for current generation but also for the
future generation.
Facing these clear challenges today is timely to rethink and reshape urban development policies and
programs, taking into account as much lessons as possible from the past and the demand of the future.
Hence, there is needed to gear the path towards sustainable urban development through balancing
economic, social-cultural and environmental dimensions.
In order to be able to respond to this big challenge, we need to underline that reliable government,
strong and clear urban development policies, capacity building for key stakeholders and active public
participation are crucial elements that must be put in place. In the future, these require more creative
and innovative urban development practices towards sustainability, then, it is time to move onto
implementation side of urban development agendas.
References
Iwan, Azis (2000). Development and Sustainable Future: The Environmental Dimension of
Indonesias Socio-Economic Progress: Presented at the International Conference on
Sustainable Future of the Global System, United Nations University, Tokyo, May 24-28.
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Republic of Indonesia (2008) Law No 18 year 2008
Republic of Indonesia (2002) Law No 28 year 2002
Republic of Indonesia (2007) Law No 26 year 2007
Republic of Indonesia (2004) Law No 7 year 2004
Republic of Indonesia (2004) Law No 38 year 2004
Republic of Indonesia (2004) Law No 21 year 2011
Republic of Indonesia (2000) Law No16 year 2000
Ministry of Settlements and Regional Infrastructure Decree No. 217/KPTS/M/2002
Sugiri, Agung (2008). Planning for Sustainable Urban Development: Some Issues on the Policy to
Develop of a New Large Settlement in Mijen Suburb of Semarang, Indonesia. Departement
of City and Regional Planning, Engineering Faculty, Diponegoro University.
Widjaja, Muliadi (2011). Social Protection in Indonesia: How Far Have We Reached? University of
Indonesia.