Urbanization as a solution for economic growth

Many people believe urbanization is the source of urban problems. This prejudice seems to be held by the Acting Governor of Jakarta, the Mayor of Surabaya and many other regional heads. The regional leaders seem rigid and strict towards “newcomers” who usually arrive after the Eid holiday.

They assign municipal police to stand guard at the bus terminals and city entrance points, checking the migrants’ ID cards and declare they will send back those whose ID cards stated that they were not from the area.

Migrants are thus considered a source of problems, as if despicable citizens. The regional heads act as if they only live in their cities, needing no help from other regions. Unfortunately, the regional head’s policy was overlooked by the Ministry of Home Affairs and other central government agencies.

This policy is, indeed, an anti-Indonesia policy and anti-1945 Constitution and Pancasila.

Some local governments have even issued regional regulations (Perda) so that companies located in their areas may only recruit local people, such as Regional Regulation No. 1/2023 in Surabaya. This regulation states that companies in Surabaya only prioritize Surabaya residents, especially local people, not migrants.

Such actions can damage the nation’s unity and inject jealousy among the people.

Urbanization as a problem?

Urbanization occurs not only in third-world countries like Indonesia. Developed countries like the United States, Britain, Canada and Japan also have many people urbanizing. They see the population movement from villages to cities as a positive point and even provide incentives. Urbanization is seen as an effort to improve citizens’ fate. There is a spirit to change and work harder, smarter and more rewardingly. This passion often withers in local dwellers who already feel comfortable residing in their areas.

From a development perspective, the economy will grow fast when people have a strong passion for change and prosperity. Thus, urbanization can be a positive matter when managed and channeled properly.

The newcomers’ passion will significantly support growth of development in cities that are urbanization destinations. Every city growing industrialization requires a new workforce that can be hired from surrounding villages.

At least, that was the case in the early 20th Century, when big cities began to industrialize. Batavia and Surabaya used to be places where people came to make a living. During the Dutch East Indies era, migrants were welcomed with open arms. Unfortunately, urbanization was considered a nemesis and source of problems during the Independence era. Independence was even ruined by the regional head’s egocentrism, as they only cared about their own cities. As if they live in a void.

Urbanization is inevitable

In fact, urbanization is predicted to become even more massive in the future. Statistics Indonesia (BPS) estimates that 56.7% of Indonesia’s population intend to live in urban areas by 2020, and this figure is predicted to increase to 66.6% in 2035. Similarly, the World Bank also estimates that 220 million Indonesians will live in urban areas in 2045 – a number equivalent to 70% of the country’s population.

The trend shows that urbanization is inevitable in the future. Smart public policy should not be a policy that prohibits urbanization but a policy that manages urbanization, so that it can be a solution to economic growth, not an economic hitch. Now the strategic question is what policymakers should do to take advantage of this urbanization wave.

Big cities are paralyzed due to mismanagement

These days, big cities are different from what they were before: when the cities were unable to support urban society, new problems emerged. The issues include poverty, inequality, slum settlements and unemployment. Instead of solving the problems they had in the village, they were faced with more problems in the city. From this perspective, perhaps, the migrant-prevention policy can be justified. However, it will not be effective, as there are always ways for newcomers to sneak into the city.

It will be better if we are honest. Urbanization becomes a source of problems because of the mindlessness of regional leaders. Because of mismanagement, the city’s ability to support local communities and migrants slows down. The regional heads fail to set up a great space to make their cities friendly for all. Obviously, one regional head cannot solve this urbanization issue. It requires immense work from the central and regional governments.

Massive Urbanization

Kingsley Davis said urbanization is an increase in the proportion of the population concentrated in urban areas. Experts agree that the main factor for urbanization is economic. In addition, there is a lack of jobs, minimal facilities and infrastructure, inadequate educational facilities and development in villages. Thus, people will veer to the city (Berger & Engzwll, 2020).

Therefore, to reduce urbanization in big cities, there must be a policy of transforming villages into urban-style developments, so that people in the villages do not have to migrate to cities. In fact, they will remain in their areas to develop their areas. But how? By using village funds to transform in that direction – not using village funds to enrich village officials.

Unfortunately, the current performance of village funds is not directed at halting the pace of urbanization. Village funds should be used to create jobs, improve facilities and infrastructure and improve education in the village community. In reality, village funds have not been able to solve this problem.

Why are village funds not effective? Because their use is not aimed at reducing urbanization.

Urbanization is a solution for growth. It must start from the leaders’ paradigm

Indonesia needs to seriously search for its future leaders. This quest requires a leader capable of making village funds effective for village transformation for the better. The future leaders needed are those who are able to create economic collaboration, so that the benefits of rural-urban connectivity are not controlled by a handful of people-the big middlemen.

Solutions to urbanization include carrying out village transformation quickly and, at the same time, improving large cities’ ability to accept more migrants. The two development directions can be carried out when there is an effective flow of collaboration and mutual needs. Unlike now, regional leaders are only concerned about their own region, void of connectivity and collaboration.

Another solution is to make village funds effective, so they become a source of new development, not just a campaign tool and a tool to thank the village for supporting a winning political candidate.

What people need is a leader who realizes that migrants from villages and city dwellers are not a problem because they need each other. The solution to urbanization is rural-urban economic collaboration.

Hopefully, next year, there will be no more threats for migrants coming to the big cities. It is like cruelty for people who wish for a better existence.