Emerging Cities
From The Report: Indonesia 2018
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Given Indonesia’s diversity, the country’s regional policy is crucial to sustainable progress. In the past, under Jakarta- and Java-based regimes, centralisation was seen as the best way forward. The post-Suharto era, however, has seen Indonesia move away from this concentration of power towards an approach that seeks to distribute authority and investment more evenly throughout the country’s many diverse regions. While this policy has not always lived up to expectations, it has seen a greater flow of investment into Indonesia’s second-tier cities, opening up new opportunities for investors.

This chapter contains interviews with Tri Rismaharini, Mayor of Surabaya; and Sri Sultan Hamengku Buwono X, Governor, Yogyakarta Special Region.

Articles from this Chapter

Overview

Growing prominence: Various regional cities are quickly becoming centres of diversified economic and cultural activity
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Stretching 5120 km from the shores of Aceh to the mountains of Papua, Indonesia is one of the world’s most diverse countries. An archipelago that reaches across time zones, Indonesia encompasses 17,000 islands – around 6000 of which are permanently inhabited – and comprises 34 different provinces, each with its own capital city. Within these islands, 300 distinct ethnic groups exist, speaking more than 742 languages between them. Given this diversity, the country’s regional policy…

Interview

Policies and incentives: Tri Rismaharini, Mayor of Surabaya, on encouraging a strong industrial and infrastructural base
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Interview:Tri Rismaharini What are some of the most important infrastructure projects in Surabaya currently? TRI RISMAHARINI: One of our main priorities since we took office in 2010 has been to build as many roads as possible across Surabaya. The goal has been to create a grid of avenues and streets around the city, making sure Surabaya’s port in the north remains well connected to the airport in the south. In this regard, we have built 337 km of roads in total, including six new north-south…

Analysis

Soaring Surabaya: This second-tier city is capitalising on its strategic location, providing connections between east and west
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A city of more than 3m people that serves as a gateway between oceans, continents and cultures, Surabaya is not only Indonesia’s second-largest conurbation, but also increasingly popular among investors. Home to the port of Tanjung Perak and a thriving commercial, industrial and business centre for eastern Indonesia, the city has seen a wave of new developments, such as an airport expansion, transport links to Jakarta and the rest of Java, and initiatives to grow the digital economy. A…

Interview

Global connections: Sri Sultan Hamengku Buwono X, Governor, Yogyakarta Special Region, on investment opportunities and growth
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Interview: Sri Sultan Hamengku Buwono X How does the government of Yogyakarta manage investment developments? SRI SULTAN HAMENGKU BUWONO X: Yogyakarta has experienced quite a lot of investment recently. We try to strategically limit and direct these investments in ways that take into consideration our region’s key characteristics. First, the government of Yogyakarta is relatively small. Second, we do not have a large supply of natural resources or a sea connection, so we must be strategic with…

Analysis

Digital transformation: Historically significant Yogyakarta region remains instrumental to the economy
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A melting pot of ancient culture and high-tech start-ups against a backdrop of spectacular coastlines and towering volcanoes, the province of Yogyakarta is where Indonesia’s historical traditions and future prospects meet. With a young, dynamic population and a local government determined to attract global investment, the city and province are among the most digital-savvy locations in the archipelago. There are 117 higher education institutions, ranging from academies to universities,…

Analysis

Maritime capital: Makassar’s marine resources and geographical advantages are helping stimulate growth across different sectors
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The provincial capital of South Sulawesi and a key pillar of Indonesia’s development, Makassar is seeing unprecedented growth in its economy, population, infrastructure and influence. An important centre for the fishing and seafood industries for decades, the city and its surrounding area are now also making a name for themselves in the digital and creative industries, tourism, and trade. Covering some 46,000 sq km, the province encompasses 21 regencies and three cities, and covers a peninsula…