URBAN – RURAL CLASSIFICATION USED BY BPS-STATISTICS INDONESIA UN Expert Group Meeting on The Statistical Methodology for Delineating Cities and Rural Areas UN Headquarter, New York 28-30 January 2019

Indonesia by Province

Java Island by District

Java Island by Subdistrict and Village Java Island by Village Village is the smallest administrative area (regional unit) inhabited by a number of families that have their own government system (headed by a village head)

Definitions of Urban There are two alternative definitions of “urban”: One is administrative, in which local government units (Kota) are given official status as municipalities. The other is functional, where each of the smallest administrative units (village or desa) is given a functional urban or rural status according to their own characteristics.

Urban-rural classification have for long been applied to villages. Preliminary Urban-rural classification have for long been applied to villages. Inequalities in income, lack of employment opportunities, lack of infrastructure, inadequate access to education, healthcare and other basic services are some of the major areas where rural areas lag behind Urban-rural classification used by BPS-Statistics Indonesia in designing statistical activities, such planning censuses/surveys; presenting and analyzing data. Source data for urban-rural classification are mainly based on the result of Village Potential Censuses as the only comprehensively source data at village level and Population and Housing Census.

Methodology There is no concept of cities or town to compile and develop methodology of census and surveys in Indonesia, there are only urban and rural concepts. The classification of urban and rural areas is carried out in the smallest administrative area, namely the village not on a grid. Village is a regional unit inhabited by a number of families that have their own government system (headed by a village head) Urban Village is a village / level administrative area that meets certain requirements in terms of population density, percentage of agricultural households, and a number of urban facilities and access, such as roads, formal education facilities, public health facilities, and so on. Rural village is an administrative area at the village that has not met certain requirements in terms of population density, percentage of agricultural households, and a number of urban facilities and access, such as roads, formal education facilities, public health facilities, and so on. Requirement based on scoring system of population density, percentage of agricultural households, and a number of urban facilities and access, such as roads, formal education facilities, public health facilities, and so on.

DEVELOPMENT OF THE METHODS OF URBAN-RURAL CLASSIFICATION IN 1961, 1971, 1980 AND 2000 B. METHOD TO CLASSIFY URBAN VILLAGE IN 1971 A. METHOD TO CLASSIFY URBAN VILLAGE IN 1961 All urban villages in 1961; Other villages having the conditions of: All villages within a city; All villages within a capital city of a district; Other villages, where more than or equal to 80 percents of its population working on non agricultural sector. More than 50 percents of its population working on non agricultural sector Having three urban facilities, i.e.: hospital/health clinic; school, and electricity.

DEVELOPMENT OF THE METHODS OF URBAN-RURAL CLASSIFICATION IN 1961, 1971, 1980 AND 2000 C. METHOD TO CLASSIFY URBAN VILLAGE IN 1980 Urban facilities, i.e.: CONDITIONS Asphalt Road Cinema Primary School Junior High School Senior High School Hospital Maternal and Child Health Center Public Health Center Telephone Bank Industrial areas Permanent Market Group of Shops Restaurant Electricity Rental of party equipments Distance to capital district Public transportation Population Density (per km2) % of Agricultural Household Number of Urban Facilities Score < 500 500 – 999 1000 – 1499 1500 – 1999 2000 – 2499 2500 – 2999 3000 – 3499 3500 – 3999 4000 – 4999 > 5000 > 95 91 – 95 86 – 90 76 – 85 66 – 75 56 – 65 46 – 55 36 – 45 26 – 35 < 25 - 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 10 Distance to the nearest urban area is less than 5 km; Based on the investigation by supervisor are classified as urban; Having “moderate” progress in village development. I II Villages having score of 19-20 are classified as urban if fulfill the conditions: Based on the investigation by supervisor are classified as nearly urban; Having “fast” progress in village development. Total Score  21 = URBAN Total Score < 21 = RURAL

DEVELOPMENT OF THE METHODS OF URBAN-RURAL CLASSIFICATION IN 1961, 1971, 1980 AND 2000 D. METHOD TO CLASSIFY URBAN VILLAGE IN 2000 Classification based on: Population Density Percentage of Agricultural Household Access to Urban Facilities Existence of Additional Facilities Percentage of Built up Area not for Housing

3. Access to Urban facilities DEVELOPMENT OF THE METHODS OF URBAN-RURAL CLASSIFICATION IN 1961, 1971, 1980 AND 2000 D. METHOD TO CLASSIFY URBAN VILLAGE IN 2000 CONDITIONS 2. Percentage of Agricultural Household Score 1 2 3 4 5 6 7 8 < 500 500-1249 1250-2499 2500-3999 4000-5999 6000-7499 7500-8499 > 8500 > 70.00 50.00-69.99 30.00-49.99 20.00-29.99 15.00-19.99 10.00-14.99 5.00-9.99 < 5.00 1. Population Density (per km2) 3. Access to Urban facilities Urban Facilities Conditions Score Kindergarten Junior High School Senior High School exist or < 2,5 Km > 2,5 Km 1 Market Group of Shops exist or < 2 Km > 2 Km 1 Cinema Hospital exist or < 5 Km > 5 Km 1 Hotel/Biliiard/Discotheque/ Massage Parlor/ Salon exist not exist 1 Percentage of Household having telephone > 8,00 < 8,00 1 Total Score (1)+(2)+(3)  10 = URBAN Total Score (1)+(2)+(3) < 10 = RURAL Percentage of Household using electricity > 90,00 < 90,00 1

4. Existence of Additional Facilities Additional Facilities DEVELOPMENT OF THE METHODS OF URBAN-RURAL CLASSIFICATION IN 1961, 1971, 1980 AND 2000 D. METHOD TO CLASSIFY URBAN VILLAGE IN 2000 Grand Total Score = (1)+(2)+(3)+(4) 4. Existence of Additional Facilities Additional Facilities Conditions Score 5. Percentage of Built up Area not for Housing = ... … … % Lighted Road Bank Public phone with card Super Market exist not exist 1 Conditions to Classify Urban Village Percentage of built up area not for housing Population Density (per km2) Grand Total Score < 5,00 5,00 – 14,99 > 15,00 S M S M S M B < 14 - Notes: S = Small Urban Village M = Moderate Urban Village B = Big Urban Village < 2.000 15 - 25 > 2.000 < 4.000 > 26 > 4.000

Some Notes The urbanization in Indonesia as well as in Southeast Asia is also characterized by the blurred distinction between ‘rural’ and ‘urban’. Both agricultural and non-agricultural activities take place side by side in the adjacent areas of the urban centers, while the urban physical development extends beyond city administrative boundaries. Improvement in transport and communication have brought urban and rural areas much closer together. It made easier for people living in the rural and urban fringe areas to commute to the urban areas where they can be involved in typically urban occupations. In addition, companies are relocating some labour intensive-manufacturing plants to the rural areas encouraged by deconcentration policies of the government and resulting in factories in the middle of rice-fields. The deregulation policy is essentially an economic policy which was basically to simplify procedures and regulations in businesses and not intended as an intervention in urban development and urbanization. Within this policy, the Mayor/Head of District has a significant role in issuing location and development permits for property and industrial estate development especially in the city/district surrounding metropolitan and large cities such as: Jakarta Metropolitan Areas (JMR) and Surabaya Metropolitan Region.

URBAN-RURAL VILLAGE CLASSIFICATION BY THE USE OF 2000 METHOD Numbers of Classified Villages by Data Sources Classification Data Sources Village Potential Data of Population Census 2000 % Village Potential Data of Population Census 2010 Village Potential Data 2014 Village Potential Data of Poplation Census 2020 Urban Villages 12.293 17,99 15.786 20,47 15.480 18,83 17.119 20,52 Rural Villages 56.054 82,01 61.340 79,53 66.729 81,17 66.319 79,48 Total 68.347 100 77.126 82.209 83.438

Indonesia By Urban-Rural

Java Island By Urban-Rural Jakarta Semarang Surabaya Bandung Yogyakarta

Standardized/modified Definition The traditional definitions of urbanization using Government’s definitions and administrative boundaries are varied from one country to another because there is no standardized definition of urban and rural. This situation is particularly troublesome if it is used for a cross country analysis or determine the aggregate urbanization status of the regions. In the face of the diverse urban definitions, international reporting and comparisons of urban populations does elicit a degree of conformity, but the differences can be misleading. In case of Indonesia, the World Bank Office Jakarta (WB, 2011) adopted and modified a functionally based definition to measure urban concentration called an agglomeration index (AI) for applicability to the Indonesian context. This method uses three factors: population density, the population of a large urban centre travel time to that large urban centre. Using a population threshold of 50,000 to define the central city; a population density of 700 persons per square kilometer for Java and 200 for other islands; a 90 minutes commute for Jakarta and 60 minutes for other agglomerations across the country.

Standardized/modified Definition Using the Agglomeration Index method, this study identifies 44 metropolitan regions of which 21 are comprised of multi-districts (kabupaten/kota) regions and others are comprised of a single city (kota) In terms of size of population, Indonesia has two megacities with populations of more than 10 million population (Jakarta and Surabaya), four metropolitan areas with populations in the range of 5 – 10 million, 13 metropolitans with populations in the range of 1 – 5 million, eight medium-sized metropolitan areas with populations in the range of 0.5 – 1 million and 17 small-cities with populations in the range of 50,000 – 0.5 million. The National Development Planning Board (Bappenas) used three administrative categories of urban areas. These include: i) urban areas as autonomous regions (known as city governments; ii) urban areas within district boundaries (district capital towns); iii) urban areas spilling over into one or more adjacent administrative areas. In legal terms of administrative regions, Indonesia has 34 provinces, 98 autonomous city governments and 416 district governments.

Standardized/modified Definition In addition, the National Development Planning Board’s (Bappenas) also classified the autonomous cities (Kota) based on population size referring to the urban area’s classification in Law No. 26/2007 on Spatial Planning. These include following categories: i) Metropolitan city with the population above 1 (one) million, ii) Large City with the population between 500,000 to 1 million, iii) Medium city with the population between 100,000 to 500,000 iv) Small city with population between 50,000 to 100,000.

Urban Areas No Classification Population Total 1 Metropolitan Cities > 1 million 14 2 Large Cities Between 500.000 and 1 million 16 3 Medium Cities Between 100.000 and 500.000 57 4 Small Cities 50.000 to 100.000 11 5 District Capital towns   416 Urban Area Total 514

Standardized/modified Definition Although the debates on urban and rural definitions have been taking place for so many years, however, those method is not being used by Government of Indonesia in measuring urban and rural population. In fact, urban and rural population data are based on traditional estimates of urbanization trends by using Government’s definitions and administrative boundaries are still used in the formulation of National Urban Development Policy and Strategy.

Trend of Urbanization 2010-2035 Three factors that cause urbanization are: natural population growth (35-40 percent), rural-urban migration (25-30 percent) and the reclassification of rural into urban area (30-40 percent).

Remarks The Proposed Methodology an opportunity alternative to develop new statistics classification Useful for international statistics comparison The main obstacles to implement are developing grids square, identifying population density and others characteristics in the grids square Indonesia is currency preparing for conducting of the 2020 census, its opportunity and we would appreciate assistance in understanding new concept and implementation

Implications of The Proposed Methods The proposed methods are useful, but difference concept, difference classification Sampling Design, representative by classification and Result of Survey Time series comparison of indicator from the same survey

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