Institutionalizing Poverty-Focused City Development Strategies in Indonesia



Approval Date
Actual Completion Date
Proposal Focus
Core Focus
Secondary Cities
Country Type


The economic and monetary crisis in 1997 and the major social transformation that followed, have been a watershed for major reform in Indonesia. The subsequent years have seen important steps to rationalise the sharing of power between national and local governments, reversing years of centralisation and transfer of responsibilities for the provision of a number of public services and functions from the national to local governments. The impacts of these changes are strongest at the local level and support the fact that the democratic process is best comprehended at the local level when people are allowed to manage their own affairs. As the decentralization process moves forward and cities take control of their destinies, effective and inclusive city management emerges as a strong need. Experience, however, has shown that decentralization cannot be imposed and needs to be developed as a demand driven process. Most successful cities in the future will be those that take the initiative in stimulating their own development potential and demonstrate a greater responsiveness to the needs of its people and its key economic actors.
Reduction of urban poverty is the core goal of this project. It will be achieved through the empowerment of the poor through participation in decision-making processes at the local level and poverty action plans, which will be formulated as part of the CDS. The overall goal of the initiative is to institutionalize poverty-centered CDSs as one of the primary tools for prioritization of urban investments.
1) Preparation of 5 City Development Strategies which will include privatization of the project, an investment plan, and a poverty action plan;  2) Formation and institution of urban forums of civil society and government to provide a platform for discussion of urban issues and solutions;  3)  Training of local government officials in a strategic, inclusive planning process;  4) “Training of Trainers” who can then facilitate the replication of the initiative in other areas;  5) Preparation of a policy note for KIMPRASWIL detailing what has been learned and how it can be institutionalized into normal government processes, as an input for the National Urban Development Policy currently being prepared by KIMPRASWIL
Expected Impacts and Results
A decentralized, participatory and effective urban management capacity; an empowered community and improved communication, citizen participation, and development of partnerships; improved governance at the local level allowing people to be heard, to take charge of their day-to-day lives and to make changes for the better.