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Urban Development

Indonesia: Bold Reforms Needed to Realize Urban Potential

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Urbanization has the potential to be a major driver of prosperity and inclusiveness in Indonesia, but fully realizing this potential requires bold institutional reforms, according to a World Bank report launched today. Indonesian cities need improved management and more adequate financing. This translates into expanding options for financing infrastructure and basic services, improving coordination among different levels and sectors of government and within metropolitan areas, and building capacity in local governments to better plan and implement urban development.

Indonesia has urbanized as it has climbed the ladder of development. Since 1950, average GDP per capita has increased almost nine-fold. At the same time, the share of the population living in urban areas has increased from 12 to 56%. Indonesia’s prosperity gains are closely linked to the benefits from urban agglomeration and the transition to an economy based on services and industry.

“As people and firms cluster in cities, it becomes easier to match talent to jobs, exchange ideas and knowledge, share inputs, and access markets,” said Kurt Kunz, Swiss Ambassador to Indonesia. “Cities are engines of prosperity, and this is why Switzerland supports sustainable urban development in Indonesia,” he added.

Although urbanization has slowed from the breakneck pace of the 1980s and 1990s, Indonesian cities continue to grow in population at a rapid pace. Today, about 151 million people live in urban areas. By 2045, the centenary of Indonesia’s independence, around 220 million people, or over 70% of its population, will live in cities.

“Better economic opportunities in cities have helped lift millions of Indonesians out of poverty and millions more join the middle-class,” said Sameh Wahba, World Bank Global Director for Urban, Disaster Risk Management, Resilience and Land Global Practice.

The report notes that Indonesia has not benefitted as much from urbanization as other countries. Between 1996 and 2016, every percentage point increase in the share of Indonesia’s population living in urban areas was associated with a 1.4% increase in GDP per capita, compared to 2.7% for other developing countries in East Asia and the Pacific. Indonesian cities also face challenges to their livability due to traffic congestion, pollution, insufficient affordable housing, and continued deficits in access to basic services. Moreover, while urbanization has made an important contribution to the overall rise of living standards, the benefits have not been shared equally.

The report Time to ACT: Realizing Indonesia’s Urban Potential argues that Indonesia’s ability to fully realize the promise of urbanization will depend on better managing “congestion forces” that arise from the pressure of growing urban populations on infrastructure, basic services, land, housing, and the environment. The report proposes three basic policy principles:

·        Augment the coverage and quality of basic services and infrastructure to reduce congestion, boost equality of opportunities, and reduce disparities in human capital outcomes.

·        Connect people with jobs and basic services within cities, and connect urban areas of different sizes with each other, with surrounding rural areas, and with international markets.

·        Target places and people left behind by the urbanization process to ensure that they share the prosperity benefits of urbanization and that urban areas are livable for everyone.

“No large country has ever reached high-income status without also becoming urbanized,” said Rodrigo A. Chaves, World Bank Country Director for Indonesia and Timor-Leste. “Because the urban environment is difficult and costly to change once built, delays in action will risk locking Indonesia further into a suboptimal trajectory of urban development. To succeed, Indonesia needs to act now.”

The report offers a novel way of classifying the different types of urban and rural places across the country. Drawing on a wide range of data sources, it takes stock of the extent to which urbanization in Indonesia has delivered on three key outcomes: prosperity, inclusiveness, and livability.

Work on the report was supported by the Swiss State Secretariat for Economic Affairs through the Indonesia Sustainable Urbanization Multi-Donor Trust Fund, and from the Australian government through the Local Solutions to Poverty and Partnership for Knowledge Based Poverty Reduction trust funds.

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Urban Development

Moscow joins the G20 Smart Cities Alliance project for responsible adoption of digital technologies

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Moscow has been selected as one of the pilot regions to implement the global policy roadmap for the responsible use of digital technologies. Cooperation with members of the G20 Smart Cities Alliance will allow Moscow to share its accumulated experience and analyze the world’s best practices in the use of digital technologies.

The Russian capital will become a member of the G20 Smart Cities Alliance project, which, as part of the development of digital infrastructure, will cooperate in developing common principles and approaches in the areas of information security and personal data protection, increasing the availability of urban infrastructure and electronic services for people with disabilities developing broadband communication networks and open data infrastructure.

37 megacities, including Barcelona, ​​Bogota, Brasilia, Buenos Aires, London, Lisbon, Manila, Melbourne, Mexico City, Milan, San Jose, Istanbul and others, will work on the roadmap of the G20 Smart Cities Alliance. The community involves authorities, international organizations in the field of IT regulation, experts not only from the G20 countries, but also cities interested in digitalization of territories.

The International Smart Cities Alliance was formed in 2019. The organization aims to create international norms and rules for the responsible use of advanced technologies.

Department of Information Technologies of Moscow

The Department of Information Technologies of Moscow (DIT) has been rapidly developing and actively growing for the past 5 years. During these years we have created over a thousand systems and services and we are pursuing the target of launching around 300 new projects annually. Today, we are proud of having digitalized over 166 state services, this is obviously more than any other region of Russia. Moreover, within the last years we have created an outstanding number of 178 portals, including the official Mayor and Government of Moscow web-site “mos.ru”. Our systems cover over 60 industries and penetrate into each aspect of

Moscow citizens’ everyday lives, our products and services include:

  • Electronic queue for Civil registry office;
  • Arrangement of remote medical appointments;
  • Personalelectronicmedicalrecords;
  • Children assignment to kindergardens/schools/extracurricular activities;
  • Providing schools with cutting edge technological equipment;
  • Obtaining references, enquiries and services remotely;
  • Numerous projects in housing and public amenities, starting from telemetrics and
  • Energetics to the possibility of submitting water usage information.

Current structure of the Department distinguishes up to 30 unique products and programs, including medical and education systems informatization, creation of crowdsourcing platforms, development of various resources and portals for Moscow and its citizens. We are aimed at continuing the process of effective informatization of the city with an emphasis on innovation development and advanced technologies application.

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Cities at Centre of International Initiative to Add Jobs and Protect the Planet

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Cities are engines of growth, contributing some 80% to global GDP, but they also account for 75% of global greenhouse gas emissions. Even in a post-COVID-19 future, urbanization is expected to grow. Cities, suburbs and the global infrastructure system have a great impact on nature, yet their role in protecting biodiversity loss and mitigating climate change has been underestimated, until now.

To help transform cities into engines of economic growth compatible with planetary and human well-being, the World Economic Forum is collaborating with the government of Colombia and the Alexander von Humboldt Institute for Research on Biological Resources on a new global initiative, BiodiverCities by 2030. This initiative will help cities around the world unlock opportunities for urban growth while protecting the environment.

In order to shape a nature-positive future, the initiative is curating a high-level commission of 25 world-renowned experts and practitioners from government, the private sector, academia and civil society. The Global Commission on BiodiverCities by 2030 will build a shared, framework and forward-looking perspective on the BiodiverCities concept.

The publicly accessible framework will outline how cities can shift from the current untenable relationship with rural areas and natural resource assets towards a more nature-positive model, which, research indicates, can add jobs to the economy. On the back of this knowledge framework, the initiative will also build on the Forum’s Strategic Intelligence platform and on a community of innovators and entrepreneurs in close partnership with the World Economic Forum’s UpLink platform.

As President Duque stated, “Colombia is the world’s most biodiverse country by square kilometer, and we have the challenge and the responsibility to protect nature in cities while improving people’s wellbeing. We are excited to partner with the World Economic Forum and key international actors to help shape a much-needed global agenda on BiodiverCities. Building on our produce while conserving and conserve while producing policy, we are eager to both share Colombian cities’ efforts and experiences, and to learn from valuable international knowledge and best practices.”

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said: “COVID-19’s impact is a stark reminder of our imbalance with the natural world. As cities face the enormous task of recovering from the impact of the COVID-19 pandemic, BiodiverCities by 2030 aims to show how nature-positive cities can offer transformative opportunities for the benefit of people, planet, health and livelihoods. We greatly look forward to working with the President of Colombia and other partners on this important global initiative and connecting with a community of experts, mayors and policy-makers.”

Research shows that nature-positive solutions, or those that add value back into nature, can create healthier and more resilient cities while generating $3 trillion in business opportunities and creating 117 million jobs. “Cities can be cooler in the summer, have cleaner air and be better protected against flooding if we can put nature at the heart of its development model,” said Akanksha Khatri, Head of the Nature Action Agenda, World Economic Forum.

At the World Economic Forum’s Sustainable Development Impact Summit 2020, and during the United Nations General Assembly meeting, President Duque called for a broader effort to advance cities and sustainable development through a “BiodiverCities” approach.

A network of nine Colombian cities, including Barranquilla as one of the initial pilots, aims to include biodiversity in their urban development models and to promote the interaction of citizens with nature. The Ministry of the Environment and Sustainable Development of Colombia is leading efforts to pilot this initiative with support by the World Resources Institute and the Alexander von Humboldt Institute for Research on Biological Resources.

BiodiverCities by 2030 comes at a vital moment. The COVID-19 pandemic has challenged assumptions about work, transportation and city living; and, nature-positive cities can offer transformative opportunities for the benefit of people, planet, health and livelihoods.This new global initiative and partnership between the World Economic Forum and Colombia will promote cities’ potential to drive pro-biodiversity urban growth.

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Urban Development

Cities Are Key to India’s Post-Pandemic Growth

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The unfolding COVID-19 pandemic has been catastrophic for cities, which have borne the brunt of the outbreak. According to estimates, about 70% of India’s GDP comes from its cities and around 25-30 people migrate to the cities from rural areas every minute. However, most big cities in India have wide economic disparity, with expansive slums and a large urban poor population. Studies estimate that about 25 million households in India – 35% of all urban households – cannot afford housing at market prices. It is time to create a new urban paradigm that enables cities to be healthier, more inclusive and more resilient.

The World Economic Forum’s new report, Indian Cities in the Post-Pandemic World, highlights the country’s most pressing urban challenges that were further exacerbated by the pandemic. The report provides insights for translating the lessons learned from the pandemic into an urban reform agenda.

The impact of the pandemic has been profoundly uneven on different population groups. Vulnerable populations, including low-income migrant workers, have suffered the dual blows of lost income and weak social-protection coverage. The pandemic has also laid bare gender-based imbalances in public and private life in India’s urban areas.

The report, produced in collaboration with the IDFC Institute in Mumbai, compiles insights from leading global and Indian urban experts across seven thematic pillars: planning, housing, transport, environment, public health, gender and vulnerable populations.


Among other recommendations, the report underscores the critical role data can play in helping cities manage and direct emergency operations during a crisis. But data alone is not a panacea; realizing the potential of cities requires empowered and capable governance, investment in transport and infrastructure to fuel productive urban economies, and a rethink of outdated planning norms and regulations.

The wide-ranging recommendations compiled in the report include:

· A rethink of outdated urban planning regulations, which will make cities more compact, commuter-friendly and green

· Greater decentralization and empowerment of local governments, which will allow for more proximate and responsive governance

· Addressing supply-side constraints to building houses at an affordable cost and encouraging a vibrant rental housing market that allows for labour mobility

· Investing in transport solutions that recognize the need to integrate peri-urban areas with urban cores

· Bolstering health capacity in cities by increasing the number of trained healthcare personnel; ensuring that infrastructure has adequate functional capacity, aligned with current and future demands

· Prioritizing inclusivity by addressing the biases and impediments faced by women and vulnerable populations in accessing urban opportunities

· Prioritizing action on environmental sustainability, air pollution and disaster management in urban rebuilding efforts

“Well-designed and governed cities can be dynamic centres that spur innovation, drive economic productivity and provide citizens with a good quality of life. The pandemic is an opportunity to address historical urban challenges and bring about positive long‑term change,” said Viraj Mehta, Head of India and South Asia and Member of the Executive Committee, World Economic Forum.

“Amidst every pandemic, from the bubonic plague to the Spanish flu, pundits have foretold the death of cities. And yet they have emerged stronger every time. The pandemic can be a turning point in India’s urban journey, if we draw the right lessons and translate them into lasting change,” said Reuben Abraham, Chief Executive Officer and Senior Fellow, IDFC Institute.

The Indian Cities in the Post-Pandemic World report is part of the World Economic Forum’s broader collaboration with the IDFC Institute for a working group on Rebuilding Cities which has emerged from the Regional Action Group for South Asia. This group brings together public and private sector leaders and prominent experts from the region to interact regularly in order to support an adequate public-private response to the COVID-19 pandemic and jointly chart recovery efforts.

The working group on Rebuilding Cities is partnering with multiple Indian state governments to constitute state-level working committees comprising local/municipal government representatives, urban experts and other relevant stakeholders to devise implementable and context-specific urban reform recommendations.

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