Urban and Rural Areas as Centres of Economic Growth in Indonesia
Equitable economic development is one of the main challenges facing Indonesia today. In order to optimise the overall economic potential, there is a need to develop economic growth centres that include both urban and rural areas. Thus, these two regions can complement each other and contribute significantly to the national economy.
The development of metropolitan areas as advanced service and trade centres is one of the strategic steps. Metropolitan areas are expected to function as national and global economic hubs, attracting investment, creating jobs, and accelerating economic growth.
For example, the development of the Capital City of the Archipelago (IKN) as an economic superhub is expected to provide various facilities and infrastructure that support this growth. In addition to being the new centre of government, IKN is expected to be an inclusive and sustainable city, providing a good quality of life for its residents.
It is important to remember that the development of urban areas should not neglect rural areas. Independent and sustainable rural development also needs to be strengthened so that people in these areas are not left behind.
By improving access to basic services, education and skills training, rural areas can contribute to the overall economy. Development based on local potential, such as sustainable agriculture or village tourism, can also be a significant source of growth.
One policy direction that needs to be implemented is the improvement of transport infrastructure linkages and digital connectivity. Good transport infrastructure will facilitate the mobility of goods and services between metropolitan cities and their surrounding districts. In addition, improved digital connectivity will strengthen integration between urban and rural areas, facilitate access to information, and improve the efficiency of business operations.
By building infrastructure that connects cities within metropolitan areas and between cities and regencies, Indonesia can create an ecosystem that supports inclusive economic growth. Strong links between cities and villages will not only increase productivity but also strengthen economic resilience.
Integration between urban and rural centres of economic growth is essential for Indonesia’s sustainable economic development. By developing metropolitan areas as economic hubs and strengthening independent rural development, Indonesia can create a more equitable and competitive economy.
Infrastructure linkages and digital connectivity are crucial steps in realising this vision, so that all regions can contribute optimally in achieving inclusive and sustainable economic growth.
Source: Bappenas
