CHAPTER 26

REDUCING THE IMBALANCED DEVELOPMENT AMONG REGIONS

National development has generally been able to enhance the quality of life and welfare of the people. Nevertheless, such development has evidently also created discrepancies in the growth among areas/regions. The discrepancies in development have occurred between Java and outside Java, between the western part of Indonesia and the eastern part of Indonesia, among cities and between urban and rural areas.

In several areas, the tendency of imbalanced development has led to the spirit of narrow regionalism, which in the extreme has manifested itself in separatist movements. Meanwhile, efforts to accelerate development in areas that are relatively left behind, even though already in progress for over ten years, have not yet shown results that can fully benefit the communities in those areas. A. THE PROBLEMS

Many areas are still left behind in the development process. Communities living in left behind areas are generally still not yet touched by development programs, so that their access to social services, economic and political activities has still been very limited and they have been isolated from the surrounding areas. Therefore, the welfare of communities in the left behind areas need to be taken care of and greater government’s concern must be given for their development. The problems faced in the development of the left behind areas, including areas that are inhabited by isolated traditional communities, are among others the following: (1) the limited access to transportation that can connect left behind areas with the relatively more advanced areas; (2) the low population density and widely dispersed population; (3) most of these areas lack resources, particularly natural and human resources; (4) development in the left behind areas has not yet been given a priority by the regional government because they are not deemed to be able to directly generate regional government revenues (PAD); (5) support from

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related sectors for the development of such areas has not yet been optimal.

Strategic and potentially rapid growth areas have not yet grown. Many areas that have competitive products and strategic locations have not yet been optimally developed. This is due to among others: (1) limited market information and technology for developing the competitive products; (2) the lack of professionalism and entrepreneurial spirit for developing the areas in the regions; (3) the not yet optimal support from national and regional policies that favor farmers and private businesses; (4) lack of institutional infrastructure oriented to the management of sustainable economic development of the regions; (5) weak coordination, synergy, and cooperation among those involved in the development of the areas, encompassing the government agencies, private entities, non-government organizations, and the general public, and among the central government, provincial government and district/city governments, in the effort for increasing competitiveness and the competitive products of the regions; (6) the still low access of farmers and small enterprises to funds, production inputs, technology, and marketing network, in their pursuit in utilizing business opportunities and to engage in investment cooperation activities; (7) the limited physical infrastructure for supporting development of the areas and development of competitive products of the regions; and (8) the not yet optimal utilization of cooperation frameworks among regions as well as among nations for enhancing the competitiveness of the areas and their selected competitive products. Actually, these strategic and potentially fast growing areas can be developed in a faster manner, because they have their specific competitive products. Once developed, these areas are expected to be able to become the engine of growth for their surrounding areas, which lack natural resources and are still backward.

The border and isolated areas are still left behind in their development. The border areas, including the most outer small islands, have a large natural resources potential and are very strategic in terms of the defense and security of the nation. Nevertheless, development in various border areas is still very much left behind compared to development in areas of the neighboring countries. The social and economic conditions of the communities in these areas are still lower

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than the social and economic conditions of the people in the neighboring nations. This has led to various illegal activities in the border areas that in the long term is feared to have the potential of creating various social problems.

The main reason for the lagging development in border areas is the orientation of regional development policy thus far, which has tended to be inward looking, thereby treating the border areas as if they were merely the backyards of national development. As a result, the border areas have not been looked upon as development priority areas by the central as well as regional governments. Meanwhile, the small islands in Indonesia encounter difficulties for being developed because their locations are isolated and are inaccessible. Many of such islands are uninhabited or are very sparsely populated and have not yet been touched by basic public services.

The inadequate functioning of the National Towns System in the growth of regions. The development of national areas basically occurs in urban and rural areas throughout the nation. Such development of urban and rural areas is inter-linked, forming a synergic development system of national areas. However, this has not yet fully taken place in Indonesia because the role of cities as the engine of development has not yet proceeded effectively, mainly in cities in Kalimantan, Sulawesi, and Nusa Tenggara. In addition, the hierarchic development of cities has not yet been fully realized, thereby cannot yet provide effective and optimal services to the surrounding areas. The links among cities and between urban and rural areas, which is currently occurring, have not yet all been mutually supporting and synergic. Many of the cities have been developing separately and even had adverse effects on each other. The result of all these is the emergence of imbalanced development among the areas/regions.

Disproportionate growth rates among large, metropolitan, medium and small cities. The high growth of large and metropolitan cities has currently been concentrated in Java and Bali, whereas the growth of medium and small cities, especially outside Java, has been slow. Such disproportionate growth of cities plus the imbalance in development among regions, have contributed to uncontrolled urbanization. This is physically indicated by: (1) the continued expansion

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of urban areas due to their rapid growth and the expansion of fringe areas, especially in large and metropolitan towns; (2) the physical expansion of cities in suburban areas, which have integrated smaller cities in the vicinity of the core city and have formed an uncontrolled conurbation; (3) the increasing number of rural cities; (4) the reclassification process (the transformation of rural into urban areas, mainly in Java); (5) the growing trend of areas in trans-border provinces (East Kalimantan, Riau, North Sumatra), which have a large percentage of urban population; (6) the declining trend in population growth of core cities in metropolitan areas, while in the surrounding areas the population growth has tended to increase (the process of rural areas becoming urban areas).

Such a trend has adverse effects (created negative externalities) on the growth of large and metropolitan cities, as well as to medium and small cities in other areas. The adverse effects (negative externalities) created in large and metropolitan towns are among others in the following forms: (1) the excessive exploitation of natural resources in the vicinity of large and metropolitan cities for the purpose of supporting and increasing economic growth; (2) the continual conversion of productive agricultural lands to human settlement, trade and industrial areas; (3) the decline in the quality of the physical environment in the urban areas due to the degradation of the environment and pollution; (4) the decline in the quality of life of the urban communities due to social-economic problems and due to the decline in the quality of basic public services in the urban areas; (5) the development of new towns has not been self-reliant and well planned, thereby creating an extra burden to the core city. This problem is a reflection of a diseconomies of scale occurring on account of the too large number of urban population and the too large extent of the areas that has to be managed in an integrated manner.

Other adverse effects to cities in other areas are: (1) the uneven distribution of the urban population and the over concentration of urban population in Java, particularly in the Jakarta-Bogor-Tangerang-Bekasi/Jabotabek area (20 percent of the total of urban population in Indonesia); (2) the not yet optimal economic function of cities (mainly medium and small cities) in attracting investments and creating employment opportunities, (3) cities have not been optimal in facilitating

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area development; (4) the role and functions of cities in supporting the realization of the system of national cities have not been synergic.

Discrepancy of development between rural and urban areas. The social economic condition of communities living is rural areas is generally much below that of those living in urban areas. This is the result of the change in economic structure and the industrialization process, wherein private and public investments (infrastructure and institutional) have tended to be concentrated in urban areas. In addition, many of the economic activities in urban areas have not been in synergy with economic activities that have grown in rural areas. Consequently, urban areas that were expected to be able to induce the growth of rural areas (trickle down effect) have in fact adversely affected the growth of rural areas (backwash effect).

The Spatial Plan (Rencana Tata Ruang), which is the reference for coordinating development across sectors and regions, has not been effectively used. The development carried out in a certain region has often disregarded its sustainability. The desire to reap short-term economic benefits has often created the desire to excessively exploit natural resources, resulting in the degradation of the natural environment and the depletion of natural resources.. In addition, conflicts have frequently occurred in the utilization of inter-sector space, as exemplified by the conflict between forestry and mining. One of the causes of such problems is that development activities in such areas have not used the Spatial Plan (Rencana Tata Ruang) as reference for coordinating and synchronizing development among sectors and regions.

The system for managing land is still not yet optimal. A transparent management of land is an essential part of the spatial planning system. There are various problems that are currently faced in the management of land, among others: (1) the land management system is not yet effective and efficient; (2) the efficient land institution for providing land services to the general public is not yet realized; (3) the competence of those in charge of land management is still low; (4) the enforcement of the law on land rights based on the principles of justice, transparency and democracy is still weak..

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B. THE TARGETS

The development of areas that still are relatively not yet developed and left behind requires development policy intervention by the government, so that the development in such areas can be stepped up, which will ultimately enhance the quality of life and welfare of the people as a whole. The targets for reducing development discrepancy among areas/regions are as follows: 1. The stepped up development of potentially fast growth and strategic

areas, left behind areas, including border areas, in an integrated and synergic system of economic growth area;

2. The balanced growth among metropolitan, large, medium, and small cities, in an hierarchical manner, in a “national urban development system”;

3. The stepped up growth of small and medium cities, especially outside Java, so that these cities can become the engines of growth of their surrounding areas within an “economic development area system”, including the realized provision of public services for the urban population;

4. The managed growth of large and metropolitan cities in a “metropolitan area development system”, which is compact, comfortable, efficient in its management and which takes into account the need for having sustainable development;

5. The realized inter-linkages of economic activities between urban and rural areas, within “one area economic growth system”, which ensures mutually beneficial relations;

6. The realized harmony of the utilization and control of space/ locations within “one area system for sustainable development”;

7. The realized system for efficiently and effectively managing land and the law enforcement on land rights of the general public, by applying the principles of justice, transparency, and democracy.

C. POLICY DIRECTIONS

In the context of attaining the aforementioned targets for reducing discrepancies in development among areas, the following policy directions are needed:

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1. Encouraging the stepping up of development and growth of strategic and potentially fast growing areas, so that they can induce the growth of left behind areas in the vicinity in one synergic ”system of economic development area”, by disregarding administrative borders and places the emphasis on industrial and distribution linkages. This can be attained by promoting selected competitive products of the region and by creating coordination, synchronization, integration and cooperation among sectors, among government agencies, the business community and the general public, in supporting the utilization of business and investment opportunities in the relevant regions;

2. Increasing the concern of the government for developing left behind and isolated areas, so that such areas can grow and develop in a faster way and can catch up in their development with other regions. The development approach, in addition to the direct efforts to empower communities, through the special allocation funds, PSO/Public Service Obligation entities, USO/Universal Service Obligation entities and through pioneering activities will also apply efforts for strengthening economic linkages with potentially fast growing and strategic areas, within the 'one economic development area system;

3. To develop border areas by changing the thus far adopted development policy that was 'inward looking' to an 'outward looking' orientation, so that such areas can be used as the gateways of economic and trading activities with neighboring nations. In addition to the security approach of development. the efforts will also apply the prosperity approach;

4. Ensuring more balanced development among metropolitan, large, medium, and small cities, in an hierarchical manner in a “system for national urban development”. Therefore, it is necessary to increase forward and backward linkages of economic activities, from the start of the industrial process to the phase of intermediate materials production, final output production, until the final demand phase, in the respective cities, in accordance with their respective hierarchy. This will need to be supported by among others increasing accessibility and mobility of people, goods and services among such cities, among others by completing and enhancing the development of the trans-Kalimantan and trans-Sulawesi roads;

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5. Increasing the stepped up development of small and medium cities, especially outside Java, so that such cities can function as the engines of growth, among others by ensuring the provision of urban basic public services, in conformity with the typology of the respective cities;

6. Encouraging the increased synergic inter-linkages of economic activities between urban and rural areas (production of rural areas are the backward linkage of economic activities in urban areas), in one “economic development system”;

7. Controlling the growth of large and metropolitan cities in one “metropolitan development area system” that is compact, comfortable, efficient in its management, and that takes into account the need for having a sustainable development;

8. Effectively enforcing the Spatial Plan (Rencana Tata Ruang), in conformity with the planning hierarchy (National Spatial Plan, Island Spatial Plan, Provincial Spatial Plan, District/City Spatial Plan), as the basis for the coordination and synchronization of development among sectors and among regions;

9. Formulating the land management system that is efficient and effective, and enforcing the laws on land rights, by applying the principles of justice, transparency, and democracy.

D. DEVELOPMENT PROGRAMS

The programs for applying the policy directions for reducing development discrepancies are as follows: 1. PROGRAM FOR THE DEVELOPMENT OF STRATEGIC AND

POTENTIALLY FAST GROWING AREAS

This program is aimed at speeding up the development of potentially leading growth areas outside Java, so that they can optimize the utilization of their natural resources in supporting efforts for enhancing the competitiveness of the areas and their selected competitive products in domestic as well as international markets, thereby enabling them to accelerate the economic development of the areas, which will ultimately also encourage economic activities in left behind areas, in an “economic growth area system”.

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In the context of supporting efforts for enhancing the competitiveness of the areas and selected competitive products in regional, national and global markets, the main activities that will be carried out for facilitating regional governments are the following: 1. To increase the development of strategic and potentially fast

growing areas, particularly those areas that have selected competitive products, through the provision of technical assistance and counterparts to regional governments, business entities, handicraft activities, farmers and fishermen;

2. To increase the provision of infrastructure and facilities, among others by constructing efficient communication network system, including marketing outlets, in the context of connecting strategic and potentially fast growing areas with national and international trade centers, including efforts to increase accessibility for communication with left behind areas;

3. To enhance the capacity building of regional governments in developing competitive industrial clusters and agro-industrial activities, at strategic locations outside Java, by providing competitive incentives, so as to be able to attract domestic as well as foreign investors. Such incentives can be in the form of tax incentives, licensing facilities, and the provision of land management rights that can compete with land management rights provided for economic growth centers of other nations;

4. To consider the giving the strategic areas the status as free port and trade areas, other than those already given to Batam island and the island of Sabang. In addition, to avert the FTZ to become enclaves, it is necessary to create backward linkages between the Batam FTZ and other areas in Riau, as well as with other areas in Sumatra, especially those that produce raw materials and intermediate inputs, that thus far still have to be imported;

5. To further enable regional governments to enhance, effectuate and expand mutually beneficial regional economic cooperation with neighboring countries, including sub-regional economic cooperation, that thus far is still being initiated, such as the IMT-GT, the IMS-GT, the BIMP-EAGA and the AIDA;

6. To increase mutually beneficial cooperation among regional governments through the networking system. Such cooperation is very beneficial for the sharing of experience, sharing of burden in the financing of development, especially for the development and

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maintenance of economic facilities and infrastructure that require a certain scale of economies that will make it inefficient if constructed by each of the regions;

7. To empower regional governments in: (a) identifying selected competitive products; (b) developing market information for their selected competitive products; (c) enhancing the entrepreneurial knowledge and capability of businessmen; (d) enhancing the access of farmers and small/medium enterprises to funding resources; (e) expanding the network of technology information and the utilization of research and technology that are focused to supporting selected competitive products; (f) developing institutions for the management of business promotion.

2. PROGRAM FOR THE DEVELOPMENT OF LEFT BEHIND AREAS

This program is aimed at increasing the quality of life and welfare of communities in left behind areas throughout the country, including areas that are inhabited by isolated traditional communities (Please refer to Table 26.1 on Location Priorities for Handling of Left Behind Areas in 2004–2009).

The main activities that will be carried out for facilitating regional governments are the following: 1. To enhance government concern for financing development,

specifically the development of economic facilities and infrastructure in left behind areas, by among others the application of such development financing schemes as: the special allocation fund (DAK), the public service obligation/ PSO scheme and pioneer funding for transportation, the application of the universal service obligation/USO scheme for telecommunications, and through the rural electrification program;

2. To enhance capacity building of the local communities, government apparatus, institutions, and finances of the regional governments. In addition, it is essential to speed up the development of human resources, through the development of social facilities and infrastructure, particularly in the field of education and health;

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3. To empower isolated traditional communities for increasing their welfare and capability to adapt with the life of communities that are more competitive;

4. To establish settlement groups for enhancing efficiency and effectiveness in the provision of public services, especially for areas that have sparse and widely dispersed population. This can be carried out by among others local transmigration as well as by inter-regional transmigration;

5. To enhance access of farmers, fishermen, trans-migrants and small and medium enterprises to funding resources, specifically through the rolling funds and micro credit schemes, and by providing guarantees for micro credits by the government to banks;

6. To enhance the linkages of economic activities in left behind areas with potentially fast growing and strategic areas, mainly by constructing the transportation system that can connect various areas, islands and various modes of transportation, specifically for areas in Papua, Kalimantan, Sulawesi and Nusa Tenggara.

3. PROGRAM FOR THE DEVELOPMENT OF BORDER AREAS

This program is aimed at: (1) maintaining the territorial integrity of the Republic of Indonesia, through the affirmation of the sovereignty of the NKRI (Unitary State of the Republic of Indonesia), which has been confirmed by international law; (2) enhancing the welfare of local communities by utilizing the economic, social, and cultural potentials and the geographical advantages that are strategic for making transactions with the neighboring country. (Please refer to Table 26.2 on the Location Priorities for the Handling of Border Areas in 2004–2009).

The main activities that will be carried out for facilitating regional governments are the following: 1. To strengthen regional governments in accelerating the

enhancement of the quality of life and welfare of the local communities, by: (a) increasing the development of the social and economic facilities and infrastructure; (b) enhancing the capacity of human resources; (c) capacity building of the apparatus of regional governments and institutions; (d) enhancing the mobilization of development funds;

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2. To increase the government's role in the financing of development, especially for the development of the economic facilities and infrastructure in border areas and small islands, by among others applying the various development financing schemes, such as the giving priority in the special allocation fund (DAK), the PSO (public service obligation) scheme, the pioneering scheme for transportation, the USO (universal service obligation) scheme for telecommunications, and the rural electrification program funding;

3. To speed up the declaration and determination of border lines with other nations by providing clear border marks and that are protected by international law;

4. To enhance participation of the local communities in protecting the environment (forests) and to prevent smuggling of goods, including illegal logging and human trafficking. Nevertheless, it is also necessary to facilitate the legal movements of goods and people, by enhancing the provision of facilities for the customs, immigration offices, quarantine facilities and enhancing security and defense;

5. To enhance capability in carrying out economic cooperation between border areas and areas of the neighboring nation, in the context of realizing border areas that function as the cross country gateways. In addition, it is also necessary to develop border areas as local natural resources based centers of economic growth through the promotion of competitive sectors;

6. To enhance nationalism of the communities; and to ensure the supremacy of law and legal regulations with regard to violations that are occurring in border areas.

4. PROGRAM FOR THE DEVELOPMENT OF INTER-CITY LINKAGES

The aims of this program are: (1) to realize the hierarchical development of cities which has synergic economic inter-linkages among the cities, in the context of realizing the national urban system; (2) to deter and prevent the urban sprawl and conurbation phenomena, such as those that have occurred on the northern coastline of Java; (3) to reduce migration from rural areas directly into large and metropolitan cities, by creating employment opportunities, including business opportunities, in medium and small cities, especially outside Java.

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The main activities that will be carried out for facilitating regional governments are the following: 1. To reaffirm the roles and functions of cities, in a hierarchical

manner, in the context of the 'economic growth area system' and the 'national urban development system';

2. To increase the provision of regional transportation network that connect cities in a hierarchic manner, for attaining the smooth collection and distribution of goods and services, by among others completing and enhancing the construction of the trans Kalimantan and the trans Sulawesi roads;

3. To establish forums of cooperation among city governments for formulating cooperation in development activities, specifically: (a) development mutually supporting processing industries, in industrial linkages in each of the cities in a hierarchic manner, in conformity with the city typology; (b) development of the infrastructure that requires a certain economies of scale; (c) conservation of water resources and the control of floods, requiring an integrated management, such as the Jabodetabek-Bopunjur cooperation scheme.

5. PROGRAM FOR THE DEVELOPMENT OF SMALL AND MEDIUM

CITIES

This program is aimed at: (1) increasing the capacity to develop and the productivity of small and medium cities; (2) increasing the external functions of small and medium cities in a 'system of economic growth area' and consolidating the internal services of such cities; (3) enabling small and medium cities to become intermediate cities in the production process of rural areas and in the production process of large and metropolitan cities, by carrying out the intermediary process at a lower cost and in a more efficient manner.

The main activities that will be carried out for facilitating regional governments are the following: 1. To strengthen the development of industrial and trading activities in

medium size cities, especially industrial activities that further process intermediate inputs that have been produced by small cities in their hinterlands, by: (a) enhancing the functions of regional markets; (b)

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developing regional processing industries; (c) enhancing the functions of regional ports and terminals as marketing outlets for the products of the areas; (d) expanding the transportation network of the area, that connects medium and small cities;

2. To increase the growth of small-scale industries in small cities, specifically industries that process agricultural products (agro-industry) from the rural areas, by: (a) developing small industrial centers by applying appropriate technology; (b) enhancing the functions of local markets; (c) expanding transportation facilities and infrastructure, that connect small cities and rural areas;

3. To prepare and consolidate the basic social infrastructure of small and medium cities so as to be able to carry out their internal and external city functions, mainly areas that form part of one economic growth areas;

4. To enhance the capacity with regard to the: (a) professionalism of the apparatus in the management of cities and in increasing their productivity; (b) entrepreneurial and management capabilities of small and medium scale enterprises in enhancing economic activities, including the application of good corporate governance; (c) enhancing the participation of the general public in the decision making process of public policies in the small and medium cities;

5. To improve institutions by reforming and restructuring institutions, by applying the principles of good urban governance in the management of small and medium cities, in the context of enhancing the function of providing public services;

6. To empower city governments in the mobilization of development funds through: (a) enhancing partnerships with private companies and the general public; (b) direct loans from commercial banks and from the central government; (c) issuance of municipal bonds; (d) extensification and intensification of tax collections and in the collection of service charges;

7. To enhance the capability of small and medium enterprises, through: (a) providing funding access; (b) developing market information for local products; (c) providing assistance on appropriate technology.

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6. PROGRAM FOR CONTROLLING THE DEVELOPMENT OF LARGE

AND METROPOLITAN CITIES

The aim of this program is to managed and control the growth of large and metropolitan cities, so that their growth and development are in line with the principles of sustainable development. The metropolitan cities are the Jabodetabek (Jakarta-Bogor-Depok-Tangerang-Bekasi), the Bandung Raya, the Mebidang (Medan-Binjai-Deli-Serdang), the Gerbangkertosusila (Gresik-Bangkalan-Mojokerto-Surabaya-Sidoarjo-Lamongan), the Kedungsepur (Kendal-Unggaran-Semarang-Purwodadi), Sarbagita (Denpasar-Badung-Gianyar-Tabanan), and the Maminasata (Makasar-Maros-Sungguminasa-Takalar) metropolitan cities. Meanwhile, the large and fast growing cities are Padang, Palembang, Bandar Lampung, Serang, Surakarta, Cilacap, Balikpapan, Samarinda, Gorontalo, Batam, Lhokseumawe, Pontianak, Tarakan, Manado-Bitung, Pakanbaru, Cirebon, Yogyakarta, Bontang, and Dumai.

The main activities that will be carried out in order to facilitate regional governments, are: 1. To apply the land use and growth management that emphasizes the

in-fill development, with a high vertical development intensity, and by restricting the suburban sprawl, including the prevention of productive agricultural lands through the firm, just and democratic application of the zoning regulation in metropolitan cities;

2. To enhance the role and function of satellite cities, including new cities, so as to become self-sustained cities, and for reducing dependence on the use of the facilities, infrastructure and utilities of the core cities;

3. To restore the functions of the old city areas (down-town areas), that currently have tended to become slump areas, chaotic, and becoming ghost towns during nighttime, through their redevelopment and revitalization, including efforts for the preservation of historic buildings;

4. To utilize idle state owned assets in city centers by utilizing such assets for government, general public and private buildings, through the BOO and BOT scheme; and by applying the progressive tax to idle lands owned by individuals and companies in productive areas;

5. To increase development cooperation among core cities and satellite cities in metropolitan cities, in the stages of planning, financing,

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construction, as well as in the maintenance phase, especially in the construction of city facilities, infrastructure and public utilities, particularly those that require a certain economies of scale, making them inefficient if constructed by each of the cities, such as: (a) the construction of inter-mode and inter-regional transportation, including the construction of mass transportation; (b) the construction of waste disposal sites; (c) the provision of drinking water; (d) the construction of flood controlling infrastructure;

6. To enhance city development in the context of the development of good urban governance; and enhancing partnerships with private enterprises and with the general public, mainly for commercially viable public service activities, through contracts, granting of concessions, etc.;

7. To establish the 'Council for the Management of Metropolitan Spatial Allotment', the members of which consist of elements from the business community, general public, related regional governments, academicians, and non governmental organizations. The main tasks and functions of this council are: (a) to maintain consistency of utilization of the Spatial Plan of Districts/Cities and the RTRW of Provinces, including the RTRW National; (b) to evaluate and to provide recommendations to the related regional governments, especially for analyzing the adverse effects of proposed construction of large projects in city areas, such as the proposed construction of malls, hyper-markets, mass rapid transit system, and to provide recommendation on certain technical requirements, if the project is permitted for being constructed; (c) to provide recommendations on efforts for enhancing urban public services.

7. PROGRAM FOR REFORMING THE NATIONAL SPATIAL PLAN

The spatial plan is the basis or reference of spatial policies for cross-sector and cross-region development, so as to ensure the synergic and sustainable utilization of space. The RTRWN (National Spatial Plan) has stipulated norms for the utilization of national space. The RTRWN has been further specified into the RTRW-Island (Island Spatial Plan) for each of the large islands/group of islands in Indonesia. The RTRW Island, contains: (a) the pattern for the utilization of space in protected

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and cultivated areas; (b) the structure for the development of the regional infrastructure networks, including centers of settlements (urban areas). Therefore, it is essential to utilize the RTRWN and RTRW Island, as the basis/reference for planning regional space, which is further elaborated in the RTRW Province and RTRW District/City.

In the context of space utilization and control, this program is aimed at: (1) synchronizing regulations on space allotment and other related regulations; (2) harmonizing the development of inter-regional and inter-country space allotment and for determining priority areas in national development; (3) managing space utilization in an effective manner, by applying the principles of sustainable development and balanced development among functions; (4) enhancing participation of the general public in controlling the utilization of space; and (5) realizing the system of space allotment institutions, that can coordinate and become a forum for consultation among various parties.

The main activities that will be carried out include the following: 1. To socialize the RTRWN and RTRW-Island to the City/District

governments and to the related stakeholders, and to build up agreements for the implementation of the RTRWN and RTRW-Island;

2. To revise Law Number 24 of 1992 on Spatial Planning (including air space) and to formulate the implementing regulations and various technical guidelines;

3. To review and effectuate the spatial plan, especially in national development priority areas, in order to ensure the coordination of development among regions and among sectors;

4. To control the utilization of space for ensuring consistency between plan and implementation, the application of the sustainable development principle, and for enhancing the balance of development among functions;

5. To consolidate coordination and consultation between the central government and regional governments, among regions, between the executive and legislative institutions, and with non governmental institutions and organizations that are involved in spatial planning, at the national and regional levels.

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8. PROGRAM FOR LAND MANAGEMENT

Program on spatial planning cannot be effectively implemented if not accompanied by the program for land management. The program for land management is aimed at: (1) enhancing legal certainty of land rights for the general public through the just, transparent and consistent enforcement of the law; (2) strengthening land institutions at the central and regional governments, in the context of enhancing public services; (3) developing the system for the management and administration of land that is transparent, integrated, effective, and efficient in the context of increasing justice of land ownership by the general public; (4) continuing measures to reform the control, ownership, use, and exploitation of land in a sustainable manner, in conformity with the RTRW and by taking into account the interest of the public at large.

The main activities that will be carried out are: 1. To develop the land registration system that is efficient and

transparent, including the making of a master map, in the context of speeding up the land registration process;

2. To reform the control, ownership, use and exploitation of land that is just, sustainable, and adhere to the principle of supremacy of the law, and that take into account spatial planning and the interest of the general public;

3. To enhance the quality and capacity of institutions and human resources pertaining to land matters, at the central and regional governments, in the context of implementing the reform of land services, in conformity with the principles of agrarian reform and regional spatial planning;

4. To justly and transparently enforce the law on land matters, in the context of enhancing legal certainty of land rights of the general public, through the synchronization of laws and regulations on land matters;

5. To develop the national land information system, that is reliable and support the implementation of the principles of good governance, in the context of enhancing coordination, public services and management of land.

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No DISTRICT No

1 Gayo Lues 392 Aceh Singkil 403 Aceh Jaya 414 South West Aceh 425 Simeulue 436 Bener Meriah 447 South Aceh 458 West Aceh 469 Nagan Raya 4710 East Aceh 4811 Aceh Tamiang 4912 Aceh Tengah 5013 North Aceh 5114 Aceh Besar 5215 Pidie 5316 Bireun 5417 South Nias 5518 Central Tapanuli 5619 West Pakpak 5720 Nias 5821 Dairi 5922 Samosir 6023 South Pesisir 6124 West Pasaman 6225 Mentawai Islands 6326 Sawahlunto/Sijunjung 6427 Solok 6528 South Solok 6629 Padang Pariaman 6730 Dharmasraya 6831 Pasaman 6932 Seluma 7033 Kaur 7134 South Bengkulu 7235 Lebong 7336 Mukomuko 7437 Kepahiang 7538 Rejang Lebong 76

TABLE 26 - 1

PROVINCE DISTRICT PROVINCE No DISTRICT PROVINCE

Nanggroe Aceh Darussalam North Bengkulu Bengkulu 77 West Lombok West Nusa Tenggara Nanggroe Aceh Darussalam Rokan Hulu Riau 78 Bima West Nusa Tenggara Nanggroe Aceh Darussalam Kuantan Singingi Riau 79 Central Lombok West Nusa Tenggara Nanggroe Aceh Darussalam Lingga Riau Islands 80 Dompu West Nusa Tenggara Nanggroe Aceh Darussalam East Tanjung Jabung Jambi 81 East Lombok West Nusa Tenggara Nanggroe Aceh Darussalam Sarolangun Jambi 82 Sumbawa West Nusa Tenggara Nanggroe Aceh Darussalam Musi Rawas South Sumatra 83 Alor East Nusa Tenggara Nanggroe Aceh Darussalam Banyuasin South Sumatra 84 West Sumba East Nusa Tenggara Nanggroe Aceh Darussalam South Oku South Sumatra 85 South Timor Tengah East Nusa Tenggara Nanggroe Aceh Darussalam Ogan Ilir South Sumatra 86 Lembata East Nusa Tenggara Nanggroe Aceh Darussalam Ogan Komering Ilir South Sumatra 87 Sumba Timur East Nusa Tenggara Nanggroe Aceh Darussalam Way Kanan Lampung 88 Rote Ndao East Nusa Tenggara Nanggroe Aceh Darussalam West Lampung Lampung 89 Sikka East Nusa Tenggara Nanggroe Aceh Darussalam North Lampung Lampung 90 Manggarai East Nusa Tenggara Nanggroe Aceh Darussalam East Lampung Lampung 91 West Manggarai East Nusa Tenggara Nanggroe Aceh Darussalam South Lampung Lampung 92 East Flores East Nusa Tenggara North Sumatra East Belitung Bangka Belitung 93 Ende East Nusa Tenggara North Sumatra Belitung Bangka Belitung 94 Ngada East Nusa Tenggara North Sumatra South Bangka Bangka Belitung 95 Landak West Kalimantan North Sumatra Garut West Java 96 Sekadau West Kalimantan North Sumatra Sukabumi West Java 97 Melawi West Kalimantan North Sumatra Rembang Central Java 98 Ketapang West Kalimantan West Sumatra Banjarnegara Central Java 99 Sukamara Central Kalimantan West Sumatra Wonogiri Central Java 100 South Barito Central Kalimantan West Sumatra Kulon Progo D I Yogyakarta 101 Gunung Mas Central Kalimantan West Sumatra Gunung Kidul D I Yogyakarta 102 Lamandau Central Kalimantan West Sumatra Sampang East Java 103 Pulang Pisau Central Kalimantan West Sumatra Pacitan East Java 104 Seruyan Central Kalimantan West Sumatra Bangkalan East Java 105 Katingan Central Kalimantan West Sumatra Pamekasan East Java 106 North Hulu Sungai South Kalimantan West Sumatra Trenggalek East Java 107 Barito kuala South Kalimantan Bengkulu Bondowoso East Java 108 Sangihe Islands North Sulawesi Bengkulu Madiun East Java 109 Poso Central Sulawesi Bengkulu Situbondo East Java 110 Tojo Una-Una Central Sulawesi Bengkulu Pandeglang Banten 111 Parigi Moutong Central Sulawesi

Central Sulawesi Bengkulu Lebak BantenBengkulu Karangasem BaliBengkulu West Sumbawa Weat Nusa Tenggara

PRIORITY OF LOCATIONS FOR HANDLING OF LEFT BEHIND AREAS 2004-2009

114 Morowali Central Sulawesi 113 Donggala Central Sulawesi 112 Banggai islands

Chapter 26 – 19

No DISTRICT

115 Buol116 Toli-Toli117 Banggai118 Mamasa 119 North Mamuju 120 Mamuju115 Buol116 Toli-Toli117 Banggai118 Mamasa 119 North Mamuju 120 Mamuju121 Polewali Mamasa122 Majene123 Jeneponto124 Luwu125 Selayar126 Enrekang127 Pangkajene Islands128 East Luwu 129 North Luwu 130 Sinjai131 Takalar132 Tana Toraja133 Bulukumba134 Bantaeng135 Barru

Source : Ministry for the Development of Left Behind Areas, 2005

179 Supiori PapuaSouth Sulawesi 152 Seram Western Part Maluku178 Sarmi PapuaSouth Sulawesi 151 Aru Islands Maluku177 Yapen Waropen PapuaSouth Sulawesi 150 Seram Eastern Part Maluku176 Biak Numfor PapuaSouth Sulawesi 149 West Maluku Tenggara Maluku175 Waropen PapuaSouth Sulawesi 148 Bone Bolango Gorontalo174 Mappi PapuaSouth Sulawesi 147 Pohuwato Gorontalo173 Tolikara PapuaSouth Sulawesi 146 Boalemo Gorontalo172 Nabire PapuaSouth Sulawesi 145 Gorontalo Gorontalo171 Paniai PapuaSouth Sulawesi 144 Muna South East Sulawesi 170 Asmat PapuaSouth Sulawesi 143 Kolaka South East Sulawesi 169 Yahukimo PapuaSouth Sulawesi 142 South Konawe South East Sulawesi 168 Puncak Jaya PapuaSouth Sulawesi 141 Buton South East Sulawesi 167 South Sorong West Irian Jaya South Sulawesi 150 Seram Eastern Part Maluku166 Fak-Fak West Irian Jaya West Sulawesi 149 West Maluku Tenggara Maluku165 Kaimana West Irian Jaya West Sulawesi 148 Bone Bolango Gorontalo164 Raja Ampat West Irian Jaya West Sulawesi 147 Pohuwato Gorontalo163 Sorong West Irian Jaya West Sulawesi 146 Boalemo Gorontalo162 Gulf of Wondama West Irian Jaya West Sulawesi 145 Gorontalo Gorontalo161 Gulf of Bintuni West Irian Jaya Central Sulawesi 144 Muna South East Sulawesi 160 West Halmahera North Maluku Central Sulawesi 143 Kolaka South East Sulawesi 159 South Halmahera North Maluku Central Sulawesi 142 South Konawe South East Sulawesi 158 Sula Islands North Maluku West Sulawesi 141 Buton South East Sulawesi 157 East Halmahera North Maluku West Sulawesi 140 North Kolaka South East Sulawesi 156 Central Halmahera North Maluku West Sulawesi 139 Konawe South East Sulawesi 155 South East Maluku MalukuCentral Sulawesi 138 Bombana South East Sulawesi 154 Buru MalukuCentral Sulawesi 137 Wakatobi South East Sulawesi 153 Central Maluku MalukuCentral Sulawesi 136 Pinrang South Sulawesi No DISTRICT PROVINCEPROVINCE No DISTRICT PROVINCE

Chapter 26 – 20

NO DISTRICT PROVINCE

1 Natuna Riau Islands

2 Kupang East Nusa Tenggara

3 Belu East Nusa Tenggara

4 North Timor Tengah East Nusa Tenggara

5 Bengkayang West Kalimantan

6 Sintang West Kalimantan

7 Sanggau West Kalimantan

8 Upstream Kapuas West Kalimantan

9 Sambas West Kalimantan

10 Malinau East Kalimantan

11 West Kutai East Kalimantan

12 Nunukan East Kalimantan

13 Talaud Islands North Sulawesi

14 North Halmahera North Maluku

15 Bintang Mountains Papua

16 Jayawijaya Papua

17 Boven Digoel Papua

18 Keerom Papua

19 Jayapura Papua

20 Merauke Papua

TABLE 26 - 2PRIORITY LOCATIONS FOR THE HANDLING OF

BORDER AREAS 2004-2009

Source : Ministry for the Development of Left Behind Areas, 2005

Chapter 26 – 21