Land Use Policy 17 (2000) 29}37 Growth, crisis and spatial change: a study of haphazard urbanisation in Jakarta, Indonesia Charles Goldblum, Tai-Chee Wong* Institut Francais d'Urbanisme, University of Paris VIII, 4 rue Nobel, Cite Descartes, 77420 Champs Sur Marne, France Division of Geography, Nanyang Technological University, 469 Bukit Timah Road, Singapore 259756, Singapore Abstract The 1997 economic crisis in Indonesia has a close relationship with the e!ects of globalisation as characterised by in#ows of industrial and "nancial capital, originating from the global shift since the 1980s. In Jakarta especially, metropolitan expansion has witnessed substantial in#ow of international capital into property-development activities. The crisis in Jakarta is characterised by a typical suburbanisation sprawl along development corridors extending beyond the scope of its Master Plan. Both the public and private sectors have been associated in the development programmes whereby a large number of new towns and industrial estates have been constructed. Adverse e!ects are obvious as a result of ine!ective urban management and a lack in infrastructure and commitment to the planning principles. Jakarta's CBD expansion has also initiated the move of industries and low-income groups towards the peripheral zones. Consequently, the traditional urban villages face demolition, replaced by more lucrative and intensive land use. The kampung restructuring policy, once a symbol of social welfare, has virtually stopped to function under the impact of the globalisation and international capital. The high vulnerability of the speculative property market and its inherent urban problems question the sustainability of the Indonesian economic growth model. Educational upgrading, however, is seen as one of the fundamentals for supporting this model.  2000 Elsevier Science Ltd. All rights reserved. Keywords: Globalisation; Centre-periphery; Urbanisation; Crisis; Land-use; Speculation; Spatial e!ects Introduction Before the outbreak of the Southeast Asian crisis in July 1997, the economic prospect of Indonesia appeared to many to be quite promising despite the well-acknow- ledged ine$ciency of its public services and widespread urban poverty. Optimistic views that Indonesia was about to join the newly industrialising nations were not rare (for example, see Yeung and Lo, 1996). The 1997 crisis hit Indonesia really hard and for more than two years from the downfall of Suharto to the election of a new president Abdurrahman Wahid in November 1999, there have been persistent riots, ethnic and relig- ious violence, and the re-emergence of regional claims of greater autonomy or even independence. Economic re- covery is far from being obvious. Almost all these distur- bances have an urban origin. * Corresponding author. Tel.: #65-460-5168; fax: #65-469-2427. E-mail address: tcwong@nie.edu.sg (T.-C. Wong) This paper examines a speci"c issue of haphazard urbanisation and spatial change in Jakarta and its ad- joining districts where the impact of the crisis is most signi"cant. In the analysis, the hypothesis whether peri- pheralisation or marginalisation of the globalisation process is directly associated with Jakarta's urban devel- opment is used as the theoretical framework. The frame- work assumes that with a dominating economic and "nancial status and a population of 10 million, Jakarta's metropolising sphere is responsible for a great scope of in#uence nation-wide, but the capital city itself is in- #uenced by its integration in a supra-national urban network of East Asia (Goldblum, 1996a). Jakarta and its network extension have required us to consider the emergence of a new centre-periphery system, as well as con#icts arising between this system, which imposes stringent demands, and those in charge of In- donesia's politics and administration in Jakarta. This two-dimensional problem is centred around the urban &territoriality' issue characterised by economic #ows, and a property investment process which seemingly ignores the limitations of politics over territorial development. 0264-8377/00/$ - see front matter  2000 Elsevier Science Ltd. All rights reserved. PII: S 0 2 6 4 - 8 3 7 7 ( 9 9 ) 0 0 0 4 3 - 5