Keynote Speech. Integrating Population Dynamics into Urban Development Plans: Sustainable Cities, Human Mobility and International Migration

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1 KEMENTERIAN PERENCANAAN PEMBANGUNAN NASIONAL/ BADAN PERENCANAAN PEMBANGUNAN NASIONAL Keynote Speech Integrating Population Dynamics into Urban Development Plans: Sustainable Cities, Human Mobility and International Migration Deputy Minister for Population and Labor Kementerian PPN/Bappenas Tuesday, November 28th

2 Outline Overview Challenges Policy responses 2

3 Overview: Urban Development 3

4 Urban Population Significantly Rose between Indonesia has been experiencing population structural changes in the last few decades as a result of successful communitybased family planning program in 1970s In 2015, Indonesia had the largest productive age group in the region During the same period, urban population has increased as much as 7 (seven) times Thousand Female Male Thousand Female Male Thousand Female Male Total Population Life expectancy Urban population millions 55.1 years 14.6% Total Population Life expectancy Urban population millions 69.8 years 49.7% Total Population Life expectancy Urban population millions 70.8 years 53.1% Source: Census 1971 & 2010, Intercensal Survey 2015, Statistics Indonesia 4

5 Unequal Distribution of Urban Population Among Regions Provinces with Highest Population Density in 2016 DKI Jakarta Projected Population per Island in 2045 West Java DIY Banten Central Java Urbans with highest population density are in Java island. East Java Bali NTT Lampung Riau Islands Indonesia Large disparities of urban population between western and eastern part of Indonesia (per sq.km) Source: Perhitungan Proyeksi Penduduk Indonesia , Bappenas (2017) In 2045, we project that development of economic centers will create more urban and more developed rural outside Java Island Urban population is estimated to rise from 53,1% in 2015 to 69,1% in Source: Statistics Indonesia (2017) Source: UN Population Prospect

6 Urban Agglomeration as an Engine of Economic Growth Contribution of Metropolitan Areas to GDP in 2015 Jabodetabek 19,15% All metropolitan areas have contributed more than one third of National GDP in 2015 DKI Jakarta Gerbangkertosusilo Bandung Raya 6,55% 3,08% 16,20% Almost half of the urban contribution to the National GDP comes from DKI Jakarta Mebidangro Kedungsepur Mamminasata 2,24% 2,18% 1,21% More than 90% of the richest Indonesians reside in Jabodetabek, controlling more than 50% of financial wealth Sarbagita 0,67% Source: Boston Consulting Group (2017) 6

7 Challenges 7

8 Impact of Population Dynamics on Sustainable Development Source: Salim et al. (2015) Population structural changes in Indonesia have affected the characteristics of consumers & producers. Currently, with emerging number of working population, consumption pattern has evolved, for example more consumers goods, fuel for transportation, or even tourism demand. In the future, Indonesia also has to prepare for the ageing population, low fertility, low mortality, and more dynamic population mobility within and outside the country. Sustainable Development Goals is expected to lead the policy into more balance population growth and mobility. 8

9 Urban Development and Its Sustainability Massive land conversion in urban areas Low density areas rapidly change into high density areas. Farming land and open green areas are converted into residential areas Slow development of mass transportation in urban areas Transformation of main transportation system is not as fast as urban population growth Few cities with railway system and interconnected transportation system More population vs waste management system Urban poverty and income inequality More migration from rural areas due to climate change Sources: BPS (2016), Ministry of Transportation (2016), JICA (2014) Drivers Urbanization Population growth Climate change Economic development Responses Sustainable urbanization Future Challenges Pressures Natural resources consumption GHGs & CO 2 emission Energy Raw materials (water, food) Land expansion Intensity of Disaster Poverty & inequality Outcomes Lower quality and environmental support Energy, water and food insecurity Higher poverty incidences and inequality Increase in social conflict and security threat Higher risk & vulnerability Threat to conservation 9

10 Access to Basic Services, 2016 Access to drinking water: 92,44% Access to Sanitation : 90,42% (14% already included safe category according to the World Bank (2013)) Open defecation : 11.08% (28.8 million people) 40,54% Households do not own house In 2016, Jakarta still has conventional type of sewerage system Data Source : Susenas Indonesia Statistics 10

11 Policy Responses 11

12 Targets of Urban Development Liveable Smart and Competitive Green and Resilient City with Local Identity Transparent, Accountable and Responsive Governance Integrated between Cities and Regions 12

13 Three Primary Aspects to Promote Livable Cities Economic Social Development Environment To promote growth for sustainable consumption and production in urban and rural areas To promote decent jobs To promote diversified jobs in rural areas To strengthen connectivity between urban and rural areas To eradicate capability deprivation To ensure access to higher quality education To promote health & well-being, through universal health insurance coverage To promote the use of renewable energy To provision of clean water To enable pollution free air To ensure access to healthy and affordable food To improve waste management 13

14 Public Private Partnerships to Promote Sustainable Urban Development Provision of Basic Services, especially for the poorest 40% in urban areas Build mass transportation based road, rail, and intermoda to increase public transport share in urban areas Subsiding construction of basic service facilities in slums area Public private partnerships in building the public areas to improve the sanitation system and access to drinking water Increasing understanding on the importance of sanitation and healthy lifestyle Developing Mass-Rapid-Transportation, Light-Rail-Transit, and Bus- Way at the urban areas: Jakarta-Cibubur, Jakarta-Bekasi, Palembang, Bandung, Surabaya Increasing capacity of commuter system between cities Developing inter-moda transportation system from the airport to reduce congestion from and to the cities as well as to reduce fuel use Improving the capacity and quality of urban rail-road network Transforming to cleaner and more energy efficient public transportation Transformation of metropolitan and big cities to SMART CITY for more efficient energy utilization and environmentally friendly infrastructure Building smart city with six principles: Smart Governance, Smart Economy, Smart Mobility, Smart Environment, Smart People, and Smart Living Strengthening public, private, and community partnerships to build soft and hard infrastructure in developing smart cities 14

15 Improving Productivity Human Resorces for More Innovations Critical Link of Population Dynamics and Sustainable Development Population Dynamics: Demographic Dividend & Urbanization Capacity Building & Knowledge Management Productivity Growth Sustainable Development INNOVATIONS Sharing Economy Product development Smart local tourism Financial technology Improving technical skills and competence of working age population to adopt with new technology Partnerships with industries to develop curriculum for the formal education, vocational, and training system Establishing and/or adopting national or international standard of competencies in urban priority sectors Partnerships with industries for mentoring program and entrepreuneur aprenticeships Source: Salim et al. (2015) 15

16 Thank You 16

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