The Integrated Urban Infrastructure Development Programme and Urban Management Innovations in Indonesia"

THIS WORKING PAPER draws on the authors’ involvement with Indonesia’s Integrated Urban Infrastructure Development Programme (IUIDP) from 1988 to 1993. The authors examine the extent of provincial and local authority support for the concept of IUIDP and see how far the integration of sectoral planning and implementation has been a success. Throughout the document a series of charts shows how policies, strategies and plans are related and illustrates the decision-making, financial processes, and institutional systems of the IUIDP. Chapter one describes the IUIDP process and outlines its eight major service components: water supply, drainage, solid waste management, sewerage, urban roads, spatial urban planning and the Market Infrastructure Improvement Programme.
Chapter two looks at the management of land, urban finance, institutional development, public- private partnership and community participation. The authors discuss the relationship between infrastructure management and the physical environment and illustrates the constraints experienced in implementing the IUIDP. The opportunities raised by these issues are emphasized and strategic approaches to them suggested. In the second part of the chapter, “enabling strategies” are discussed and a series of measures to improve the role of government as enabler are proposed. A section recounting experiences of IUIDP implementation concludes by doubting “...whether central government is ready for IUIDP as a programme in support of decentralization.” The final chapter provides an overview of the IUIDP which has become a “...strategic cornerstone of urban management in Indonesia.” Despite the lack of ministerial consensus about the actual workings of the programme, many reform measures for a more efficient system of urban management have been made. Whilst there is not much evidence that the IUIDP has resulted in the accelerated provision of infrastructure, it has “...made considerable contributions to innovation in the local government finance field” by raising awareness of loan financing tools and obligations to mobilize resources. The authors conclude by proposing an agenda for Indonesia’s urban managers that gives a high priority to development partnerships. Two annexes provide data on per capita expenditure on individual urban services in 45 secondary cities in Indonesia.