During the mass contract signing event for the KPR Sejahtera Housing Liquidity Financing Facility (FLPP) in late December 2025, President Prabowo Subianto spontaneously conveyed an important idea: the need for a master plan for cities in Indonesia. According to the President, the presence of such a master plan is expected to transform the appearance of cities, making them more beautiful as well as more attractive to tourists.
This statement was quite surprising. Not only because it was delivered in a forum for mass FLPP subsidized housing contracts, which has traditionally materialized subsidized homes in regencies and suburban fringes, but also because this marks the first time President Prabowo has explicitly paid attention to the urban development agenda. Moreover, over the past year, the government’s policy focus has been heavily directed toward human resource development through the free nutritious meal and people’s school (sekolah rakyat) programs, as well as strengthening the rural economy through food self-sufficiency and the Merah Putih cooperatives.
The emphasis on human resource and rural development is certainly not an error. In fact, in several aspects, it has begun to show results. In the rural sector, for instance, there has been an increase in farmers’ welfare, reflected in the improving farmer terms of trade (NTP), increased food production, and the fantastic growth performance of the agricultural sector over the past year.
However, as the government targets an economic growth rate of up to eight percent, a development priority that leans too heavily toward rural areas has the potential to create a paradox. Worldwide experience over many years demonstrates that the acceleration of economic growth almost always relies on strengthening urban areas. Conversely, rural development is more commonly positioned as an equity strategy rather than the primary locomotive of growth.
The problem is that Indonesia is currently not yet in a fully established and equitable economic phase. Economic growth still needs to be pushed higher, while regional disparity has not been completely resolved. In this context, a growth-through-equity strategy cannot solely rely on rural development. Strengthening cities, as the nodes of economic activity, industry, services, and innovation, becomes an absolute prerequisite.
Therefore, the President’s invitation to assemble governors, mayors, and academics to deliberate on the direction of urban development should be welcomed with optimism. This momentum ought to be utilized to formulate how limited national resources—whether fiscal, policy-related, or talent-based—can be strategically focused on urban development.
Indonesian cities inherently possess great potential. However, this potential is insufficient if driven only by municipal governments alone. Fiscal limitations, narrow scopes of authority, and fragmented cross-sectoral policies make it difficult for many cities to transform significantly. Without the support of a strong national framework, cities will continue to move individually with uneven achievements.
Furthermore, Indonesia to this day does not have a specific law on urban areas. Yet, cities are the main engine of national economic growth. For this reason, the idea of an urban master plan should serve as an entry point for the initiation of an Urban Law (Undang-Undang Perkotaan) capable of clarifying the division of authority, strengthening urban financing, and fostering the integration of policies across sectors and levels of government.
Ultimately, urban development must not stop at efforts to beautify the face of the city or merely attract tourists. Indonesian cities must be built to deliver a real impact: increasing the productivity of their citizens, expanding job opportunities, strengthening national competitiveness, and becoming a lever for inclusive and sustainable economic growth.
This momentum must not be missed. If managed with the right vision, the strengthening of cities can become a vital foundation for Indonesia to leap into a higher phase of economic growth. Hopefully!
