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.