Economic Crisis, Political Reform, and The Rise of Civil Society in the Indonesian Urban Development:

An Analysis based on a Good Governance and Decentralisation Survey

Civil society in the sense of urban development has become an increasingly important feature in Indonesian economic development today. The reason for this is simply because of the increasing number of the under-employment and the poor people caused by the long economic crises that has struck Indonesian life. Indonesia has implemented the concept of good governance and decentralization in the sense of achieving a better civil society just after the long financial and political crises.
It has been well known that during the New Order Regime, particularly from 1968 to 1996, Indonesia was one of the developing countries in Asia which experienced high economic growth (about 8 per cent per annum). It has brought this country into the group of the "miracle economies" in East Asia. However, due to the economic crisis in mid-1997, the economic situation has changed significantly. At the end of 1997 up to 1998, for instance, a big number of private industries were collapsing, many forced-resign were done, the inflation rate reached up to 77.63 per cent, and the economic growth slumped to the point of -14.7 per cent. This economic instability was followed by multiple dimensional riots into more deep-seated economic and political problems. It is very interesting that the long financial crisis in Indonesia has been followed by an overall governmental reform, including decentralization and the development of good governance starting from 2001. The growth pole and top-down mechanism has been changed into smart civilization and bottom-up development.
This paper aims at discussing trends, issues and the role of civil society in urban development, taking the case of Indonesia. It will also strive to disclose the role of many stakeholders in urban development and their role in the historic perspectiveThe analysis of the economic crisis and the change of political reform also will be included. Data and information used to examine these issues were obtained from a longitudinal Good Governance and Decentralization Survey conducted in 2001, 2004, and 2006. This research as a whole covered about 140 regencies and/or municipalities. In particular, about 24 cities will be deeply analyzed. In terms of Civil Society, the paper will portray the role of stakeholders at different levels, such as the role of household, community leader, official leader, and government leader in urban development activities, especially people participation in the cities' infrastructure, health services, education services, water and sanitation development.

Vice Dean of the Faculty of Geography Gadjah Mada University, Yogyakarta

Agus Joko Pitoyo
Lecturer at the Faculty of Geography Gadjah Mada University, Yogyakarta

Umi Listyaningsih
Lecturer at the Faculty of Geography Gadjah Mada University, Yogyakarta