This paper herein discusses an urban driving force generated by campus activities with the case of Yogyakarta urban areas. Analyses are mainly from empirical and secondary data. Yogyakarta has a specific phenomenon as an education city, where 86 Universities are located. The students at university highly contribute to urbanization; more than 30 % of students come from areas across the Indonesian archipelago with a growth rate of 14.76 % a year. The case of Gadjah Mada University Campus shows that formerly the area was a bare land (Bulaksumur), outside of Yogyakarta’s municipality boundaries. Currently, the area develops into an urban area with the main characteristics of student economic services, such as food stall, photo copy facilities, internet, stationery, boarding house, followed by non-student economic activities (bank, motor dealer, retail, mini market and hotel). Furthermore, those activities modify space functions from settlement area to economic facilities. The process of urbanization is also indicated by social and economic transformation such as the shifting of agricultural activities to commercial and service activities, and pulls people and new investments into student related economic facilities. The same case also happens in the Islamic University of Indonesia (UII) campus, situated approximately 14 km from Gadjah Mada University to the north. The condition surrounding UII campus now is urbanized as compared to the situation in 1994 when the area was a rural area. In terms of urban development planning, establishing a campus in an area can be used as a strategy for creating a new growth pole. However, there are some criteria for a campus to become an urban driving force: the qualification of the campus to attract students and the trend towards regional development. The negative impact of Yogyakarta’s cases is in the proper site location of UII campus; it is situated in a recharge area and agricultural land.
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