OECD Green Growth Studies

OECD Green Growth Studies
Green Growth in Bandung,

Indonesia
Green Growth
in Bandung, Indonesia
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Please cite this publication as:

OECD (2016), Green Growth in Bandung, Indonesia, OECD Green Growth Studies, OECD Publishing,
Paris.
http://dx.doi.org/10.1787/9789264264113-en
ISBN 978-92-64-26213-3 (print)

ISBN 978-92-64-26411-3 (PDF)
Series: OECD Green Growth Studies

ISSN 2222-9515 (print)
ISSN 2222-9523 (online)
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FOREWORD – 3
Foreword
This report presents the results of a study on urban green growth in the Bandung
Metropolitan Area, Indonesia, and is the third case study in the OECD project on Urban
Green Growth in Dynamic Asia. It analyses the economic and environmental
performance of Bandung, assesses its policies and governance practices that can promote
green growth, and provides recommendations to enhance its green growth potential.
The report identifies certain urban challenges holding back the economic and
environmental performance of the city, including traffic congestion, air pollution, limited
access to piped water, underground water depletion, inefficient municipal waste
management, increasing greenhouse gas (GHG) emissions and exposure to disaster risk,
such as flooding and seismic activity. The report identifies both internal and external
opportunities the city might consider to overcome these challenges and increase its
economic growth in the long term.
The Urban Green Growth in Dynamic Asia project explores how to promote green
growth in cities in Asia, examining policies and governance practices that encourage
greening and competitiveness in a rapidly expanding economy. The project contributes
both to the OECD Green Growth Strategy and to the OECD Strategy on Development, as
well as to ongoing discussions on the role of cities in tackling the urgent challenges of
climate change. Five case studies have been conducted, in Bangkok (Thailand),
Hai Phong (Viet Nam), Bandung, Iskandar Malaysia (Malaysia) and Cebu (Philippines).
They were chosen on the basis of criteria such as population size, speed of growth,
economic structure, and the centrality of the city in the national and regional economy.
The results of the case studies will culminate in a synthesis report on Urban Green
Growth in Dynamic Asia.
The project is part of the OECD Green Cities Programme, launched in 2010, which
has conducted four metropolitan case studies (Paris, Chicago, Stockholm and
Kitakyushu), two national case studies (China and Korea) and produced a synthesis
report, Green Growth in Cities (2013).
The analysis is based on a “focused comparison” strategy of case study research. This
entails asking the same questions in the different case study cities, to discern similarities
and draw general lessons. Although the analysis focuses on Asian cities, the lessons for
promoting green growth are relevant for other OECD member countries and cities.
The report was prepared by the Directorate for Public Governance and Territorial
Development. The directorate’s mission is to help governments at all levels design and
implement strategic, evidence-based and innovative policies to strengthen public
governance, respond effectively to diverse and disruptive economic, social and
environmental challenges, and to deliver on governments’ commitments to citizens.
The publication benefited from guidance by the OECD Regional Development Policy
Committee and its Working Party on Urban Policy, as well as the support of the local
GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

4 – FOREWORD
team co-ordinated by the City of Bandung. It draws on data provided by the local team
and the OECD Metropolitan Database. The analytical approach draws on Urban Green
Growth in Dynamic Asia: A Conceptual Framework (2014). The expertise and experience
of OECD member countries provided relevant international benchmarks and policy
examples.

ACKNOWLEDGEMENTS – 5
Acknowledgements
This publication was prepared by Tadashi Matsumoto (Project Manager, Urban Green
Growth/Knowledge Sharing), Loïc Daudey (Consultant, Green Growth/Knowledge
Sharing in Southeast Asia) and Martin Abbott (Consultant, Green Growth in Southeast
Asia) under the direction of Joaquim Oliveira Martins (Head of the Regional
Development Policy Division). It benefited from comments and input from numerous
colleagues: Karen Maguire, William Tompson, Olaf Merk, and Kwame Boye Frimpong.
Ulrike Chaplar, Pilar Philip and Victoria Elliott prepared the manuscript for publication.
Our thanks go to the local team that provided support throughout the study, including
the preparation of the background report and organisation of the OECD study missions to
Bandung. The OECD Secretariat would like to thank in particular: M. Ridwan Kamil
(Mayor of Bandung), Kamalia Purbani (Head of Local Development Planning
Board), Hery Antasari (Secretary, Local Development Planning Board), Anton
Sunarwibowo (Head of Spatial and Infrastructure Planning Division), Ayu Sukenjah
(Head of Division for Environment Rehabilitation), Nunun Yanuati (Head of
Infrastructure Planning Sub Division) Lisa Surya (Highway and Irrigation Agency),
Tamni Lasmini (Head, Spatial Planning Division), Enjang Mulyana (Secretary, Transport
Agency), Yunita Caroline (Informatics and Communication Department), Sofyan
Pranaja(Environment Management Agency), Endar Desri Kumala Dewi (Local
Development Planning Board), Sulistiyo Feti Dahlia (Health Agency), Aswin Sulaeman
(Asset and Finance Management Agency), Evrilina (Settlement and Spatial Agency).
We also thank the members of the Indonesian government who participated in the
OECD study missions and provided comments on the report including Adi Cahyadi, Bara
Ampera, Mahpud Sujai (Fiscal Policy Agency, Ministry of Finance), Zaenal
Arifin (Ministry of National Development Planning). In addition, Siti Fatimah (Bandung
Institute of Governance Studies), Ilham Cendekia Srimarga (Senior Researcher,
Sinergantara) and Suhono H. Supangkat (Institut Teknologi Bandung) provided valuable
comments. Representatives from relevant organisations, including the Agence Française
de Développement (AFD), the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH, Global Initiative Disaster Risk Management (GIDRM),
the Asian Development Bank (ADB), United Cities and Local Governments Asia
Pacific (UCLG-ASPAC), Asosiasi Pemerintah Kota Seluruh Indonesia (APEKSI), the
C40 Cities Climate Leadership Group, Japan International Co-operation Agency (JICA),
the United States Agency for International Development (USAID), Cities Alliance and
the United Nations Human Settlements Programme (UN-Habitat) also provided helpful
insights.
The publication has benefited from input from the Knowledge-Sharing Platform on
Urban Green Growth in Dynamic Asia and the participants of the Bandung Knowledge-
Sharing Workshop on Urban Green Growth in Dynamic Asia (6-7 May 2015). The

6 – FOREWORD
workshop was supported by the OECD Knowledge-Sharing Alliance. Akira Ogihara, the
case study’s international peer reviewer from Kawasaki, Japan, joined the OECD study
mission to Bandung (May 2015) and provided invaluable reports. Richard Carlos Worden
(international environmental consultant) provided inputs on urban resilience and disaster
risk management. Wahyu Mulyana (Urban and Regional Development Institute) provided
support on local data collection and policy assessment. The OECD Secretariat would
gratefully like to acknowledge the financial support of the City of Bandung, the
government of Japan, AFD and the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH.

TABLE OF CONTENTS – 7
Table of contents
Foreword......................................................................................................................................... 3
Acknowledgements ........................................................................................................................ 5
Acronyms and abbreviations ...................................................................................................... 11
Executive summary...................................................................................................................... 13
Chapter 1 The economic and environmental performance of Bandung................................. 15
1.1. Demographic characteristics of the Bandung Metropolitan Area ....................................... 17
1.2. The BMA’s socioeconomic structure .................................................................................. 20
1.3. Environmental trends and challenges for green growth ...................................................... 28
1.4. Bandung’s institutional landscape ....................................................................................... 36
Notes .......................................................................................................................................... 37
Bibliography ............................................................................................................................... 39
Chapter 2 Bandung’s emerging green growth opportunities ................................................. 45
2.1. Developing BMA-wide land use and public transport strategies ........................................ 46
2.2. Accelerating investment in water and solid waste as essential urban services ................... 57
2.3. Investing in renewable energy and increasing energy efficiency ........................................ 68
2.4. Promoting green buildings and combatting urban slums .................................................... 71
Notes .......................................................................................................................................... 75
Bibliography ............................................................................................................................... 76
Chapter 3 The smart city vision and green growth in Bandung ............................................. 81
3.1. Tailoring Bandung’s smart city vision to green growth objectives ..................................... 83
3.2. Enhancing data and knowledge on green growth in Bandung through ICT ....................... 88
3.3. Enhancing the performance of green growth-related infrastructure.................................... 91
3.4. Making Bandung resilient to natural disaster through smart city tools ............................... 95
3.5. Making the smart city inclusive ........................................................................................ 100
Notes ........................................................................................................................................ 104
Bibliography ............................................................................................................................. 105
Chapter 4 Governance for green growth in Bandung ............................................................ 109
4.1. Enhancing co-ordination for green growth between government bodies .......................... 111
4.2. Financing green growth in Bandung ................................................................................. 120
4.3. International co-operation for green growth in Bandung .................................................. 129
4.4. Engaging and collaborating with local stakeholders ......................................................... 133
Notes ........................................................................................................................................ 141
Bibliography ............................................................................................................................. 143

8 – TABLE OF CONTENTS
Tables
Table 1.1. The Bandung Metropolitan Area ........................................................................... 18

Table 1.2. Changing land-use patterns in Bandung City ........................................................ 29
Table 1.3. Bandung Regency water source ............................................................................. 34
Table 1.4. Water consumption in the BMA (MLD)................................................................ 34
Table 1.5. BMA sanitation profile (2014)............................................................................... 35
Table 1.6. Municipal solid waste management in the BMA ................................................... 35
Table 2.1. Indonesia’s national ambient air quality standards and WHO guidelines ............. 55
Table 2.2. Bandung City Medium-Term Plan 2014-18 .......................................................... 63
Table 2.3. Energy savings target in the Master Plan of National Energy Conservation ......... 71
Table 3.1. Main smart city initiatives for green growth in the world and Bandung to date ............ 87
Table 3.2. Types of data collected by smart devices............................................................... 89
Table 4.1. Major plans and policy guidelines at the national level and in Bandung............. 113
Table 4.2. Attribution of tax revenues to subsectors of general government as percentage
of total tax revenue ............................................................................................. 122
Table 4.3. Urban green growth projects in Bandung involving international partners ......... 132
Table 4.4. Data on green growth not available in Bandung .................................................. 137
Figures
Figure 1.1. The Bandung Metropolitan Area ....................................................................... 17

Figure 1.2. Population of Indonesia’s major metropolitan areas.......................................... 19
Figure 1.3. Age structures in selected Asian cities ............................................................... 19
Figure 1.4. Average annual GRP growth, 2002-12 (PPP) .................................................... 21
Figure 1.5. Per capita GRP (2000 constant prices) 2002-12 (PPP) ...................................... 21
Figure 1.6. Number of people employed by industry........................................................... 23
Figure 1.7. The BMA economy by sector, 2012 .................................................................. 24
Figure 1.8. Comparative metropolitan economic structures ................................................ 24
Figure 1.9. Highest achieved education level....................................................................... 25
Figure 1.10. Percentage of the population living below the poverty line............................... 27
Figure 1.11. Gini co-efficient in selected cities...................................................................... 27
Figure 1.12. Unemployment rates, 2004-14 ........................................................................... 28
Figure 1.13. Total number of motor vehicles ......................................................................... 30
Figure 1.14. Annual average ambient PM10 levels ................................................................. 31
Figure 1.15. Greenhouse gas emissions by sector in Bandung City, 2013............................. 31
Figure 1.16. Power generation in Indonesia by source, 2013 ................................................ 32
Figure 2.1. The Bandung Metropolitan Area and its expanding urban environment ........... 48
Figure 2.2. Composition of landfilled waste ........................................................................ 67
Figure 4.1. Evolution of the budget of the City of Bandung (2010-16) ............................. 121
Figure 4.2. Budget per inhabitant in the cities of Bandung and Bangkok .......................... 121
Figure 4.3. Revenue of the City of Bandung by source ..................................................... 122
Figure 4.4. Foreign direct investment, net inflows (% of GDP) ........................................ 125
Figure 4.5. Distribution of green financing by project in Indonesia .................................. 126
Figure 4.6. Number of PPP infrastructure projects in Indonesia, by province ................... 128
Figure 4.7. Total official development finance committed to selected ASEAN
countries (USD billion ) .................................................................................. 129
Figure 4.8. Number of official development activities and funding for urban and rural
areas in Indonesia for environmental purposes (including Rio Conventions)
(2002-14) ......................................................................................................... 131

TABLE OF CONTENTS – 9
Boxes
Box 1.1. Indonesia’s national strategic areas........................................................................ 37

Box 2.1. Hazard assessment in Metro Cebu, Philippines ..................................................... 49
Box 2.2. An emerging Jakarta-Bandung urban corridor....................................................... 52
Box 2.3. National and international initiatives for sustainable urban transport.................... 57
Box 2.4. Metropole watch programme: Toward open source water quality monitoring in
Bangkok ............................................................................................................... 60
Box 2.5. Revitalising the Citarum River Basin .................................................................... 62
Box 2.6. Solid waste management strategies in Indonesia ................................................... 64
Box 2.7. Formalising the informal: Examining opportunities for municipal solid waste
reduction............................................................................................................... 67
Box 3.1. Bandung Command Centre .................................................................................... 84
Box 3.2. Smart parking management in San Francisco ........................................................ 93
Box 3.3. Energy-positive eco-district in Lyon, France ......................................................... 95
Box 3.4. Rio de Janeiro’s Operations Centre ....................................................................... 98
Box 4.1. Bridging the capacity gaps: Examples from OECD countries ............................. 115
Box 4.2. The benefits of metropolitan thinking .................................................................. 118
Box 4.3. Intermunicipal co-operation in Barcelona............................................................ 119
Box 4.4. Zero-Baht shop: Community-based recycling in Thailand .................................. 135
Box 4.5. Metro Vancouver’s MOU with the University of British Columbia ................... 138

ACRONYMS AND ABBREVIATIONS – 11
Acronyms and abbreviations
3Rs Reduce, reuse and recycle

AFD French Development Agency
ASEAN Association of Southeast Asian Nations
BMA Bandung Metropolitan Area
BOD Biochemical oxygen demand
BRT Bus rapid transit
CO2 Carbon dioxide
CTF Clean Technology Fund
DEWATS Decentralised wastewater treatment systems
DPI Department of Planning and Investment
DWT Deadweight tonnage
EE Energy efficiency
FDI Foreign direct investment
GCAs Government contracting agencies
GDP Gross domestic product
GEF Global Environment Facility
GHG Greenhouse gas
GIS Geographic Information System
GRP Gross regional product
GW Gigawatts
ICT Information and communications technology
IDR Indonesian Rupiah
JMA Jakarta Metropolitan Area
KPI Key performance indicator
kW Kilowatt
LFPR Labour- force participation rate
LGUs Local government units

12 – TABLE OF CONTENTS
LRT Light-rail transit

MEMR Ministry of Energy and Mineral Resources
MLD Million litres daily
MOF Ministry of Finance
MOT Ministry of Transport
MRT Mass rapid transport
MSW Municipal solid waste
NAAQS National Ambient Air Quality Standards United
NGO Non-governmental organisation
NRW Non-revenue water
ODA Official development assistance
OOF Other official flows
PM Particulate matter
PPP Public-private partnership / Purchasing power parity
RE Renewable energy
SME Small and medium-sized enterprise
TOD Transit-oriented development
VRA Vulnerability and risk assessment
WHO World Health Organization

EXECUTIVE SUMMARY – 13
Executive summary
Urban green growth policies encourage economic development while reducing either
negative environmental externalities (for example, air pollution and carbon dioxide
emissions) or the consumption of natural resources and environmental assets, including
water, energy and undeveloped land.
Bandung Metropolitan Area (BMA) has a population of 8.6 million people and is the
most populous Indonesian metropolitan area after Jakarta. The BMA has benefited from
strong economic growth. Between 2002 and 2012, its gross regional product (GRP)
doubled in size (6.6% annual growth), underpinned by a burgeoning tertiary sector
supported by strong local demand. Higher education levels in Bandung City have
accompanied this strong tertiary sector growth. While Bandung continues to attract
people and firms, the rapid growth has also created a number of greening challenges for
the city, including traffic congestion, air pollution, municipal solid waste and water
access and management. The BMA also faces several acute disaster risks, primarily
related to flooding and seismic activity. Bandung will need to address these greening
challenges to continue to benefit from its environmental assets.
Opportunities for action

Rapid urban expansion in flood-prone areas in the BMA is increasing the city’s
exposure to flooding. BMA-wide vulnerability and risk assessment and zoning
regulations to restrict land use in inappropriate locations should be urgently considered to
enhance urban resilience. The BMA should also draw up a metropolitan spatial land-use
plan that integrates transit-oriented development with other key sectoral policies to tackle
traffic congestion. It also needs to accelerate investment in public transport across the
metropolitan area by strengthening collaboration with the private sector. Meanwhile,
more efficient use of existing transit modes, such as minibuses, and improved service
quality, could increase connectivity. Since most air pollution and CO2 emissions in the
BMA derive from the transport sector, Bandung should also consider increasing the
monitoring of air pollution from transport and promoting low-emission vehicles.
Water supply, wastewater treatment and solid waste management could still use
improvement. The lack of wastewater treatment has resulted in highly polluted waterways,
and the unsustainable extraction of ground water has had negative effects, such as land
subsidence. In addition to focused investment in wastewater treatment facilities, demand-
side policies to curb water usage (e.g. applying a more progressive water tariff structure)
should be considered. The same could be applied to municipal solid waste services, to
better reflect the true cost of the service provided.
Indonesia is largely dependent on fossil fuels, which represented 94.5% of final energy
consumption in 2013, higher than in neighbouring countries such as Thailand (76.2%).
Although a new national target seeks to increase the share of renewable energy (RE) to 23%
of the primary national energy mix by 2025, sub-national governments do not appear to be
actively working toward this target. Bandung could take a leading role in introducing RE in
its operations. Solar and waste-to-energy seem particularly promising and practical.

14 – EXECUTIVE SUMMARY
The housing and building sectors also present opportunities for green growth, given the
increasing energy consumption in buildings. The proposed green building certificate, linked
with a mandatory building permit, could help guide eco-friendly building plans and should
be expanded to the entire BMA. Upgrading informal settlements requires a comprehensive
approach, especially since many are in flood-prone areas.
With 78 higher education establishments, the education sector clearly offers an
opportunity for the city to enlist co-operation on green growth objectives. Universities and
research institutes can support the local government in producing, collecting and analysing
data. The BMA should also support its existing innovation assets, such as the Institute for
Innovation and Entrepreneurship Development and the Bandung Creative City Forum
(BCCF).
Becoming a “smart city” with green growth

Bandung aims to become a “smart city,” and the digital technologies acquired or
developed thus far indicate that it could become a model for smart cities in Indonesia and
the developing world. The intent is to use information communication technology and
innovation to manage the city’s development. The Bandung Command Centre, the
flagship smart city project, collects data on traffic and violations, emergency needs and
the location of public utility vehicles. Collecting input from citizens on a range of issues
through social media helps identify problems and react to them more rapidly. The city
should continue its efforts and tailor its smart city vision and projects to urban green
growth performance, for example in the energy, water, flood resilience and solid waste
systems. Social inclusion should also be an objective, as Bandung has more than 120 000
slum dwellers, and 8% of its population lives below the poverty line.
Governance for urban green growth

Indonesia’s decentralisation reforms since the late 1990s have empowered sub-
national governments but at the same time resulted in fragmented development at the
local level that, in the BMA, has led to uncoordinated management of transport, solid
waste and floods. The establishment of a BMA co-ordinating body (currently in progress)
will help address these issues, if it is granted sufficient authority and support from the
national and provincial governments.
Financing is critical for implementing urban green growth. The City of Bandung’s
budget has significantly increased over the past six years, thanks to increasing local own
revenues, but resource is not yet sufficient. Indonesia needs fiscal mechanisms that can both
increase local revenue and promote green growth, such as parking fees. Foreign direct
investment inflows in Indonesia are lower than in other Southeast Asian countries, due to
cumbersome restrictions, but Indonesia has been a pioneer in the region in fostering green
investment banking, for instance by creating sustainability ratings in markets. The local
government’s strategy of relying on public-private partnerships (PPPs) must also be
supported by the national government, at all stages of PPP project development.
The BMA could take advantage of its young population by enlisting them in efforts to
green the city. Community participation is crucial, and a first step is to identify the needs
and interests of different community groups in areas related to green growth and organise
support for it.

1. THE ECONOMIC AND ENVIRONMENTAL PERFORMANCE OF BANDUNG – 15
Chapter 1
The economic and environmental performance of Bandung
Chapter 1 examines Bandung’s economic, social and environmental performance. It first

presents how the city’s population has evolved over the last decade as well as provides an
assessment of the city’s socioeconomic growth. Environmental trends and green growth
challenges are then discussed. This chapter is structured into the following four sections:
1) demographic characteristics of the Bandung Metropolitan Area
2) the BMA’s socio-economic structure
3) environmental trends and challenges for green growth
4) Bandung’s institutional landscape

16 – 1. THE ECONOMIC AND ENVIRONMENTAL PERFORMANCE OF BANDUNG
Key findings
• The Bandung Metropolitan Area (BMA) is located in the central-west interior of Java,
140 kilometres southeast of the Indonesian capital, Jakarta. The BMA’s population is
8.6 million, the most populous Indonesian metropolitan area after Jakarta. It has been
growing faster than comparable Indonesian cities, 1.9% annually between 2000 and
2010. Recent population growth has primarily been concentrated in outlying districts.
The BMA’s population is expected to reach 9.1 million people by 2020, when the
population of the Jakarta-Bandung urban corridor is projected to be 40 million.
• The BMA and particularly Bandung City have benefited from robust economic
growth more rapid than the Indonesian average and commensurate with that of
other Indonesian metropolitan areas. Between 2002 and 2012, the BMA’s gross
regional product (GRP) doubled in size, averaging 6.6% annual growth. However, the
BMA’s per capita GRP of USD 7 490 is less than one-quarter of that of the Jakarta
Metropolitan Area (USD 32 013) and is only marginally higher than Indonesia’s per
capita GDP (USD 7 475).
• The BMA’s economic growth is underpinned by a burgeoning tertiary sector and
is supported by strong local demand for services, even though the manufacturing
industry remains the largest employer. Bandung’s urban environment and high quality
of life lie at the heart of its economic competitiveness relative to other large
Indonesian cities such as Jakarta, where air quality and traffic conditions are relatively
poorer.
• Although the BMA has enjoyed strong economic growth in the last decade, not all
residents have benefited to the same extent. Inequality has risen sharply. This is
demonstrated by a rising Gini co-efficient and overall numbers of people living in
poverty, as well as enduring and high unemployment.
• Changing land-use patterns and a growing population have severely strained
local infrastructure and the provision of basic urban services, such as transport,
water management and municipal solid waste (MSW). Vehicle numbers increased
by more than 400% between 2004 and 2014, contributing to severe traffic congestion
and high air pollution. Limited sanitation and water service coverage has resulted in
negative environmental externalities, such as decreasing ground water levels, land
subsidence and high levels of pollution in the local rivers that meet the city’s water
needs. Less than half of the BMA’s households have access to piped water services.
The volume of MSW produced has almost doubled to 56 909 cubic metres daily in
2014.
• The BMA faces several acute disaster risks, primarily related to flooding and
seismic activity. Flooding, in particular, has been exacerbated, because the footprint
of Bandung’s built environment has doubled in size and reduced surface water
absorption rates.

1.1. Demographic characteristics of the Bandung Metropolitan Area

Bandung is located in the central-west interior of the island of Java, about
140 kilometres south-east of the Indonesian capital, Jakarta. The Bandung Metropolitan
Area (Cekungan Bandung, as it is widely known) covers a mountainous and elevated area
of 3 488 square kilometres. Bandung City, located at the centre of this metropolitan area,
is the capital of West Java Province.
Bandung’s economic activities extend beyond the administrative borders of Bandung
City and encompass a much larger urban agglomeration. Given the lack of commuting
data, the OECD’s methodology for defining the functional urban area of the BMA has not
been applied in this analysis. Instead, the Bandung Metropolitan Area (BMA) boundary
identified in the West Java Province Spatial Plan is the principal analytical unit of this
report. On some occasions where data for the metropolitan area is not available, the
analysis only takes Bandung City into account.
The Bandung Metropolitan Area (BMA) was first designated a National Strategic
Area (PKN) by the National Spatial Plan (RTRWN), government regulation No. 26 of
2008. It includes two city (Kota) and two regency (Kabupaten) municipalities;
i) Bandung City (Kota Bandung), ii) Cimahi City (Kota Cimahi), iii) Bandung Regency
(Kabupaten Bandung) and iv) West Bandung Regency (Kabupaten Bandung Barat), as
well as a part of Sumedang Regency (Kabupaten Sumedang), which incorporates five
neighbouring sub-districts; i) Jatinangor, ii) Cimanggung, iii) Tanjungsari, iv) Sukasari
and v) Pamulihan (Figure 1.1).
Figure 1.1. The Bandung Metropolitan Area
Source: Bandung City (2016), “Answers to the OECD case study questionnaire”, internal document, unpublished.

The population of the BMA continues to expand steadily. As of 2015, its population
was 8.6 million (Table 1.1). The BMA expanded rapidly between 1980 and 1990, by
2.48% per year, and is still growing steadily, at an average of 1.94% annually from
2000-10 (Table 1.1). This makes it the most populous metropolitan area in Indonesia after
the Jakarta Metropolitan Area (JMA), or Jabodetabekpunjur, whose population is
29.5 million people1. The BMA’s population is projected to reach 9.1 million by 2020
(Figure 1.2). The BMA’s recent population growth has been concentrated primarily in
outlying districts (Syabri et al., 2013). Bandung City grew 0.37% per year between 1990
and 2000 and 1.16% between 2000 and 2010. By contrast, the population of Bandung
Regency grew by 2.62% per year from 1990-2000, and by 2.57% between 2000 and 2010
(Table 1.1).
The demographic structure of the BMA is young. The percentage of its population
under 15 years is 29%, similar to that of Cebu City (29%) and more than double that of
Tokyo (11%). The working-age population (15-64 years) is also high, at 67%
(Figure 1.3). Within the BMA, the share of working-age population varies across the five
districts. In Bandung City, it is 71%, compared to 64% in West Bandung Regency.
Notably, 60% of Bandung City’s population is under 40 (City of Bandung, 2015a).
Table 1.1. The Bandung Metropolitan Area
Municipal area 2015 Annual Annual Area 2014 density Sub-districts

population* population population (km2) (people/ km2) (Kecamatan)
growth (%) growth (%)
(1990-2000) (2000–10)
Bandung City 2 481 469 0.37 1.16 167.7 14 797 30
Cimahi City 586 580 - 2.06 39.3 14 926 3
Bandung Regency 3 534 114 -2.56 2.57 1 768.0 1 999 31
West Bandung Regency 1 629 423 - 1.97 1 305.8 1 248 16
Sumedang Regency** 371 938 2.79 1.23 207.6 1 792 5
Bandung Metropolitan Area 8 603 524 1.85* 1.94 3 488.0 2 467 85
Note: *This is a projected figure. **This excludes the sub-districts outside the BMA. Although there are
26 sub-districts in Sumedang Regency, only five form part of the BMA. These five sub-districts are located
along the regency’s south western edge, bordering Bandung Regency. Data was not available for Cimahi City
and West Bandung in 1990.
Source: Statistics West Java (2015a), Jawa Barat Dalam Angka/West Java in Figures,
http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-Angka-2015.pdf (accessed 20 June 2016);
Statistics Sumedang (2015), Kabupaten Sumedang Dalam Angka, Sumedang Regency in Figures,
http://sumedangkab.bps.go.id/new/website/pdf_publikasi/Kabupaten-Sumedang-Dalam-Angka-Tahun-2015.pdf
(accessed 20 June 2016).

Figure 1.2. Population of Indonesia’s major metropolitan areas

Jakarta Metropolitan Area Bandung Metropolitan Area Surabaya Metropolitan Area
35 000 000
30 000 000
25 000 000
20 000 000
15 000 000
10 000 000
5 000 000
0
1980 1990 2000 2010 2015* 2020*
Note: *This is a projected figure.

Source: Calculations based on statistical data from: Statistics Indonesia, Statistics East Java, Statistics Jakarta and
Statistics West Java.
Figure 1.3. Age structures in selected Asian cities
0-14 years 15-64 years 65+ years
4% 4% 4%
12% 13% 10%
23%
67% 69% 65%
73% 67% 75%

65%
29% 27% 32%

15% 20% 16%
12%
Bandung Metropolitan Iskandar Malaysia Singapore (2015) Metro Cebu (2010) Hai Phong (2015) Tokyo (2014) Seoul (2014)
Area (2014) (2010)
Source: City of Hai Phong (2015), “Answers to the OECD case study questionnaire”, internal document,
unpublished; Department of Statistics Malaysia (2011), Population Distribution and Basic Demographic
Characteristics; Population and Housing Census of Malaysia; OECD (2016), "Metropolitan areas", OECD Regional
Statistics (database). http://dx.doi.org/10.1787/data-00531-en (accessed 20 June 2016); Philippines Statistics
Authority (2014), Statistical Tables on Sample Variables from the results of 2010 Census of Population and Housing
Cebu, https://psa.gov.ph/content/statistical-tables-sample-variables-results-2010-census-population-and-housing-
%C3%83%C2%A2%C3%A2%E2%80%9A%C2%AC%C3%A2%E2%82%AC%C5%93-cebu (accessed
20 June 2016); Statistics West Java (2015a), Jawa Barat Dalam Angka/West Java in Figures,
http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-Angka-2015.pdf (accessed 20 June 2016); West
Java in Figures 2015; Statistics Singapore (2015), Population Trends 2015: Statistical Appendices,
www.singstat.gov.sg/docs/default-source/default-document-library/publications/publications_and_papers/population_
and_population_structure/population2015-table.xls (accessed 20 June 2016).

1.2. The BMA’s socioeconomic structure
Strong but uneven economic growth

The BMA’s GRP,2 in terms of purchasing power parity (PPP), grew on average by
6.6% annually in constant 2000 prices, from USD 28.85 billion (Indonesian
Rupiah [IDR] 41.19 trillion) in 2002, to USD 54.81 billion (IDR 78.25 trillion) in 2012.
This accounts for 21.5% of West Java’s GRP and 3.1% of Indonesia’s GDP (Statistics
Indonesia, 2007; Bappeda Provinsi Jawa Barat, 2013). The growth rate is substantially
higher than the provincial (5.7%) and national (5.4%) average rate of growth during the
period (Statistics Indonesia, 2006; Statistics Indonesia, 2015b). In comparison with other
Indonesian cities, the BMA’s GRP grew faster than the Jakarta Metropolitan Area’s
(5.9%), while the Surabaya Metropolitan Area’s (SMA) grew even faster (6.8%) during
this period (Figure 1.4).
The BMA’s strong GRP growth is chiefly buoyed by Bandung City, which was the
source of 38.1% of the BMA’s GRP in 2002 and 44.5% in 2012. Economic growth within
the BMA’s five districts varied significantly during this period. Bandung City’s GRP
(PPP) grew on average by 8.1% annually in constant 2000 prices, and increased from
USD 12.07 billion (IDR 17.23 trillion) in 2002 to USD 26.31 billion (IDR 37.56 trillion)
in 2012 (Statistics Indonesia, 2007; Bappeda Provinsi Jawa Barat, 2013). Bandung
Regency’s GRP, on the other hand, only expanded by 2.3% during the period. Cimahi
City’s GRP grew on average by 4.8% annually in 2012, while West Bandung Regency
grew by 5.7% (Figure 1.4).
Per capita GRP growth has been slower in the BMA and remains below the per capita
GRP of other comparable Indonesian cities, although it is marginally higher than the
equivalent Indonesian average. The BMA’s per capita GRP (PPP) grew on average by
4.5% annually in constant 2000 prices, increasing from USD 4 826 (IDR 6.89 million) in
2002 to USD 7 490 (IDR 10.69 million) in 2012 (Figure 1.5). This contrasts sharply with
the JMA’s per capita GRP which increased during the same period by an average of 4.0%
per year, from USD 10 562 (IDR 14.7 million) to USD 15 696 (IDR 25 million). The
SMA’s per capita GRP increased by an average of 5.5% per year, from USD 10 302
(IDR 14.71 million) to USD 17 534 (IDR 25.32 million). Indonesia’s overall per capita
GDP averaged 4.11% annual growth, rising from USD 4 998 (IDR 7.14 million) in 2002
to USD 7 475 (IDR 10.67 million) in 2012. Thus, the BMA’s per capita GRP remains less
than one-third of Jakarta’s and less than half that of the SMA’s equivalent (Figure 1.5).
Contemporaneously, per capita GRP varies widely across the BMA’s four local
government areas (LGA). Between 2002 and 2012, the per capita GRP of Bandung City
averaged 7% annual growth, reaching USD 10 686 (IDR 15.26 million), higher than the
national equivalent. In Bandung Regency, on the other hand, per capita GRP grew by an
average of 5.2% during this period, to USD 5 176 (IDR 7.39 million).

Figure 1.4. Average annual GRP growth 2002-12 (PPP)
8.1%
6.6% 6.8%
5.7% 5.7% 5.9%
4.8%
4.5%
2.3%
Bandung City Bandung Cimahi City West Bandung Sumedang Bandung West Java Jakarta Surabaya
Regency Regency Regency Metropolitan Province Metropolitan Metropolitan
(2006-12) Area Area Area
Note: Because Bandung Regency was split into two regencies in 2006, with the creation of West Bandung
Regency, the analysis only considers the period from 2006 to 2012.
Source: Calculations based on data from Statistics Indonesia, Statistics West Java, Statistics East Java, Statistics
Jakarta.
Figure 1.5. Per capita GRP (2000 constant prices) 2002-12 (PPP)
2002 2012 Average annual GRP growth 2002-12
20 000 10%
18 000 9%
16 000 8%
14 000 7%
12 000 6%
10 000 5%
8 000 4%
6 000 3%
4 000 2%
2 000 1%
0 0%
Bandung Metropolitan West Java Province Jakarta Metropolitan Area Surabaya Metropolitan Indonesia
Area Area
Source: Calculations based on data from Statistics Indonesia, Statistics West Java, Statistics East Java, Statistics
Jakarta.
An emerging service-based urban economy, with a strong manufacturing sector

The BMA’s sectorial employment structure is changing rapidly. The number of
people employed has increased across all employment sectors, particularly in the

manufacturing and service industries. In 2014, a total of 3 416 573 people were
employed, an increase of 2 152 968 jobs since 2009. During this time, employment in the
BMA has shifted rapidly away from agriculture towards an urban economy dominated by
the secondary and tertiary sectors. Between 2009 and 2014, 859 837 new jobs were
created in the manufacturing sector, an increase of 946%, reaching a total of 950 701.
More than half (57%) of these new jobs were located in Bandung Regency, more than the
total number of people employed in Cimahi City (311 476). Employment in services
expanded by 577% during the period, adding 494 094 new jobs. Forty-two percent of
these were located in Bandung City, the primary location of service sector jobs in the
BMA. As a result, the overall proportion of people in the BMA employed in the
manufacturing sector almost quadrupled (increasing from 7.2% to 27.8%), the BMA’s
largest sectorial employer, while services more than doubled (from 6.8% to 17%). In
contrast, jobs growth in the agricultural sector was comparatively modest, adding
32 256 jobs, an increase of 8.6%. The overall proportion of people employed in
agriculture and trade declined sharply, from 29.7% and 34.9% in 2009 to 11.95% and
24% respectively in 2014 (Figure 1.6).
Labour-force participation has increased significantly. In 2004, the BMA’s labour-
force participation rate (LFPR) was 53.2%, whereas by 2014, it had increased
substantially, to 62.9%. LFPRs vary widely across the four LGUs and are highest in
Bandung Regency (66.2%) and lowest in West Bandung Regency (55.7%). The growing
number of people in formal employment is mirrored in West Java Province’s LFPRs,
which increased from 52.7% to 62.8%. However, key sectors are heavily reliant on
informal workforce participation. Informal employment in Bandung often involves urban
transport, such as the ojek motorcycle services and solid waste collection. This essential
urban service is largely carried out by informal waste crews who transfer rubbish from
households to neighbourhood depots (Damanhuri and Padmi, 2014). The informal sector
could play a key role improving urban services (Chapter 2), as demonstrated by
Surabaya’s accommodation of informal waste pickers in its municipal solid waste
management system.
Although the manufacturing industry still employs a greater number of people
overall, the expansion of the BMA’s tertiary sector shows a marked shift towards a
service-based metropolitan economy. The share of the BMA’s GRP grew by 10% in 2012
and contributed 49% of the BMA’s overall GRP (Figure 1.7). The concentration of
service-based economic activities in Bandung City includes notable growth in the tourism
and retail industry, which alone contributed one-third (33%) of the BMA’s overall GRP
in 2012 and represented two-thirds (68%) of the tertiary sector’s economic activity
(Statistics Indonesia, 2014). Trade, hotel and restaurants compose the largest share (30%)
of the sector, which grew by 10% in 2012. Services (8%) and transport and
communications (8%) were the next largest contributors, and recorded strong growth of
7% and 10% respectively (Figure 1.7). Bandung attracted 3.9 million tourists in 2014,
making it one of Indonesia’s key domestic holiday destinations, although only 4.4% of
these (170 982) were international visitors (Statistics Bandung City, 2015).
The share of the secondary sector’s GRP was 47% in 2012, a decline of two
percentage points since 2010 (Figure 1.8). This decline can be attributed to a rate of
growth half (5%) that of the tertiary sector in the last two years. Manufacturing dominates
the secondary sector and represents (40%) of the BMA’s overall GRP. Almost half (47%)
of this economic activity is located in outlying eastern city districts in Bandung Regency.
The textile industry and clothing manufacturers make up the bulk of secondary sector
output. In 2005, the government of Indonesia estimated that about 65% of Indonesia’s

textile industries were located in Bandung or surrounding areas (Mu’minah, 2011). Other
notable contributors include the construction industry (4%), which grew by 11% in 2012
(Statistics Indonesia, 2014). While the overall contribution of the secondary sector is
falling in the BMA, it also varies widely between the five districts. In Bandung City, the
secondary sector represented less than one-third (31%) of the district’s overall economic
activity in 2012, whereas in Cimahi City it contributed slightly more than
two-thirds (68%) of the city district’s GRP (Figure 1.8). In Sumedang Regency, the
secondary sector accounts for 31%, while in West Bandung it is 53%.
The BMA’s primary sector, in contrast, which incorporates important agricultural and
natural resource industries, remains stable. The sector expanded by 5%, and its relative
economic contribution stood at 4% in 2012 (Figures 1.7 and 1.8).
Overall, the economy of the BMA is increasingly led by the burgeoning tertiary
sector supported by strong local demand for services from across the BMA. It is the
product of local economic policy that has prioritised service industries, such as tourism,
commerce and education, since the late 1990s, due to environmental concerns (Abidin et
al, 2007). The increasing value added by the tertiary sector to GRP is a trend evident in
other large Southeast Asian cities. However, by contrast with Jakarta and Bangkok, where
74% and 70% of the GRP is derived from the tertiary sector, the BMA’s is significantly
smaller (Figure 1.8). This suggests that the BMA’s economic structure, while still largely
based on manufacturing, has the potential to shift towards a service-based urban
economy.
Figure 1.6. Number of people employed by industry
Bandung City Bandung Regency Bandung Barat Cimahi City Percentage of total workforce
1 000 000 40%

900 000 35%
800 000
30%
700 000
600 000 25%
500 000 20%

400 000 15%
300 000
10%
200 000
100 000 5%
0 0%
2009 2014 2009 2014 2009 2014 2009 2014 2009 2014
Agriculture Manufacturing Trade Services Other
Source: Statistics West Java (2010), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/root/dalamangka/JabalDalamAngka2010.pdf (accessed 20 June 2016); Statistics West
Java (2015a), Jawa Barat Dalam Angka/West Java in Figures, http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-
Barat-Dalam-Angka-2015.pdf (accessed 20 June 2016).

Figure 1.7. The BMA economy by sector, 2012
Agriculture, forestry and
Finance, real estate and fishing, 3.7%
business services, 3.8% Other
services, Mining and quarrying, 0.4%
Transportation and 7.8%
communication, 7.7%
Manufacturing, 39.9%
Hotel and restaurant/trade,
29.7%
Electricity and gas,

water supply,
sewerage, waste
management and
remediation activites,
Construction, 4.0% 3.0%
Source: Statistics Indonesia (2014), Gross regional domestic product of regencies/municipalities in Indonesia 2009-13.
Figure 1.8. Comparative metropolitan economic structures
Primary Secondary Tertiary
26% 28%
47% 49%
61%
69%
65% 63%
49% 47%
39%
31%
9% 9%
4% 4%
Bandung City (2002) Bandung City (2012) Bandung Regency Bandung Regency Bandung Metropolitan Bandung Metropolitan
(2006) (2012) Area (2010) Area (2012)
Source: Statistics Bandung City (2003), Bandung Dalam Angka 2003/Bandung City in Figures 2003; Statistics Bandung
Regency (2008), Produk Domestik Regional Bruto Semesteran Kabupaten Bandung 2008 [Gross Regional Product of
Bandung Regency 2008]; Statistics West Java (2013), Kompilasi dan Analisis PDRB Kabupaten/Kota di Jawa Barat
2011-2012, http://pusdalisbang.jabarprov.go.id/pusdalisbang/downlot.php?file=872Kompilasi%20PDRB%202011-
2012.pdf&direktori=produkanalisa (accessed 21 June 2016).
Higher education levels in Bandung City are linked with its high per capita GRP
Educational attainment is high in the BMA. More than 50% of men and 40% of
women have graduated from high school or a higher education institution (Figure 1.9).
Notably, the numbers of men and women with a post-secondary qualification indicate a
high level of equal opportunity. Bandung City is home to 78 colleges and universities,
including some of the most prestigious in Indonesia (Bandung City, 2016). Of several

large public universities in West Java Province, at least three are in Bandung City,
including the Bandung Institute of Technology (ITB), Padjadjaran University (UNPAD)
and Indonesia Education University (UPI). Another education centre is located in
Jatinangor sub-district in Sumedang Regency.
An important gap is observed in the level of educational attainment between Bandung
City and other parts of the BMA and West Java Province (Figure 1.9). Bandung City’s
higher level of educational attainment is linked with its high per capita GRP. 30.5% of the
BMA’s public and military jobs and 53.5% of service industry jobs are concentrated in
central and eastern districts of the city (Syabri, Pradono and Soegijanto 2013). In contrast,
the economy of West Java in general is dominated by the secondary sector and lower per
capita GRP.
Figure 1.9. Highest achieved education level
Bandung City Bandung Metropolitan Area Province of West Java
40%
35%
30%
25%
20%
15%
10%
5%
0%
Men Women Men Women Men Women Men Women Men Women Men Women
Tidak/Belum Sekolah Tidak/Belum tamat SD SD/MI SLTP/sederajat SLTA/Sederajat Diploma+
No schooling Primary school Primary school Junior high school High school Post-secondary
incomplete
http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-Angka-2015.pdf (accessed 20 June 2016).
Challenges to inclusive urban growth

Despite the strong economic growth in the last decade, not all residents have
benefited to the same extent, and inequality has risen sharply. This is demonstrated by a
rising Gini co-efficient and overall numbers of people living in poverty, as well as
enduring and high unemployment.
Poverty levels in the BMA are in decline, and lower in proportional terms compared
to the Surabaya Metropolitan Area and Indonesia as a whole, even though they are higher
than in Jakarta (Figure 1.10). In the last 30 years, urban poverty levels have declined
nationally from 29% in 1980 to 10.7% in 2009 (Statistics Indonesia, 2010). More recent
data attests that this reduction has continued, with urban poverty decreasing from
11.91 million (10.7%) in 2009 to 10.65 million (8.8%) in 2012. Rural poverty also
slightly decreased, from 20.6 million (17.4%) to 18.5 million (15.1%) in the period
(Government of Indonesia, 2013). The overall number and the proportional share of
people living below the poverty line in the BMA3 dropped from 685 500 in 2005 (9.7% of
the BMA population) to 638 500 (8% of the BMA population) in 2012 (Statistics
Indonesia, 2007b; Statistics Indonesia, 2013). A notable exception to this positive
development is Bandung City, where both the number and the proportion of people living

in poverty has increased. In 2005, 84 600 people, about 3.7% of the population, lived
below the poverty line (Statistics Indonesia, 2007b; Statistics Indonesia, 2013). By 2012,
this had increased to 111 400 people, or 4.6% of the population. Bandung City’s poverty
level is significantly lower than provincial and national levels, but the upward trend is
masked by the substantial reduction in numbers elsewhere in the metropolitan area.
Increasing income inequality is a serious policy issue. The BMA’s Gini co-efficient,
a widely used indicator that represents the income distribution and income inequality
across a population, increased from 0.30 in 2008 to 0.40 in 2014 (Figure 1.11). The Gini
co-efficient of the Province of West Java increased from 0.35 to 0.41 in the period, while
rising nationally from 0.35 to 0.41. By comparison with other Indonesian cities, the
BMA’s Gini co-efficient rose faster than in Jakarta, Yogyakarta and Surabaya. This
increase was not uniformly distributed. In 2014, the Gini co-efficient was higher in
Bandung City (0.48) and Cimahi City (0.39) and rose at a greater rate than in Bandung
Regency (0.37) and West Bandung Regency (0.33).
Bandung City’s slum settlements also require attention. Bandung is the second largest
city in Indonesia after Jakarta in terms of the total population living in slum areas, with
at least 26 000 dwelling units and 120 000 inhabitants (Tarigan et al., 2016). The 2013
slum settlement database of the city shows that they cover a total of 2.53 square kilometres
in 29 locations. The settlements are scattered across industrial zones, service centres,
riverbanks, airport, railways, military areas and new development areas. The rapid outflow
of poor rural folks to urban areas in search of employment and economic opportunity in the
BMA may help explain why slums persist, despite efforts to curtail their development. The
Ministry of Public Works and Housing has updated Indonesia’s slum settlement data
for 2014 to 384.31 square kilometres.
The rate of unemployment has markedly declined in the last ten years, from 16.1% in
2004 to 8.4% in 2014. 4 It nevertheless remains higher than the national rate of
unemployment (Figure 1.12). In the BMA, the rate is lowest in Bandung City (8%) and
highest in Cimahi City (9.6%). Unemployment among women is higher than the average
for men. This may be the result of the greater proportion of women in the informal
domestic workforce (7 in 10 unpaid jobs are performed by women) (ADB, 2011).

Figure 1.10. Percentage of the population living below the poverty line
2012 2005
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Bandung Metropolitan Province of West Java Surabaya Metropolitan DKI Jakarta DI Yogyakarta Indonesia
Area Area
Source: Statistics Indonesia (2014b), Data dan Informasi Kemiskinan 2005-2006 Katalog BPS 2331, Buku 2 Kabupaten,
www.bps.go.id/website/pdf_publikasi/Data-dan-Informasi-Kemiskinan-2005-2006-Kabupaten.pdf; Statistics Indonesia
(2014c), Data Dan Informasi Kemiskinan Kabupaten/Kota/ Poverty Data and Information by Regency and City,
www.bps.go.id/website/pdf_publikasi/watermark_3205014_Data%20dan%20Informasi%20Kemiskinan%20Kabupaten%20K
ota%202014.pdf.
Figure 1.11. Gini co-efficient in selected cities
2008 2014
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
Bandung Metropolitan Province of West Java Jakarta Yogyakarta Surabaya Indonesia
Area
Note: Jakarta and Surabaya are cities and not representative of the JMA or SMA.
Source: Statistics Indonesia (2016), Gini Ratio by Province 1996, 1999, 2002, 2005, 2007-2015,
www.bps.go.id/linkTableDinamis/view/id/1116 (accessed 21 June 2016); Statistics Jawa Barat (2016), Gini Ratio
Menurut Kabupaten/Kota Tahun 2008-2014/ Gini Ratio by Regency/City 2008-2014,
http://jabar.bps.go.id/index.php/linkTabelStatis/91 (accessed 21 June 2016); Statistics East Java (2016), Gini Ratio by
Regency/City 2008-2014, http://jatim.bps.go.id/linkTabelStatis/view/id/326 (accessed 21 June 2016).

Figure 1.12. Unemployment rates, 2004-14
Bandung Metropolitan Area Province of West Java Indonesia Jakarta
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2004 2005 2007 2009 2011 2013 2014
Note: In 2009, the definition of working age was increased from 10 years of age to 15 years and older.
Source: Statistics West Java (2004-05), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/index.php/pages/id/1212 (accessed 22 June 2016); Statistics West Java (2006), Jawa Barat Dalam
Angka/West Java in Figures, www.jabarprov.go.id/index.php/pages/id/1212 (accessed 22 June 2016); Statistics West Java
(2008a), Jawa Barat Dalam Angka/West Java in Figures, www.jabarprov.go.id/root/dalamangka/dda2008.pdf (accessed
22 June 2016); Statistics West Java (2010), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/root/dalamangka/JabalDalamAngka2010.pdf (accessed 22 June 2016); Statistics West Java (2012),
Jawa Barat Dalam Angka/West Java in Figures, www.jabarprov.go.id/root/dalamangka/dda2012.pdf (accessed
22 June 2016); Statistics West Java (2014a), Jawa Barat Dalam Angka/West Java in Figures,
http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-Angka-2014.pdf (accessed 22 June 2016); Statistics
West Java (2015a), Jawa Barat Dalam Angka/West Java in Figures,
1.3. Environmental trends and challenges for green growth
Its mountainous geography and mild climate distinguish Bandung from other major
cities in Southeast Asia. On the one hand, Bandung’s elevated position, on a plateau
768 metres above sea level, allows it to benefit from cooler year-round temperatures than
other cities in the Indonesian archipelago and broader region. Jakarta, approximately
140 kilometres to the north west, is subjected to the full extent of a tropical monsoon
climate. Bandung’s comfortable mountain climate was the catalyst for a proposal to
remake the city as the capital of Indonesia at the turn of the 20th century. This urban
environment and quality of life explain Bandung’s economic competitiveness with other
large Indonesian cities, such as Jakarta, with its relatively poorer air quality and traffic
conditions.
However, changing land-use patterns and a growing population have severely strained
local infrastructure and the provision of urban services, such as transport, solid waste and
potable water. The increasing city size and population have also led to negative
environmental externalities, and Bandung faces major obstacles to green growth in any
future business-as-usual scenario.5
Rapid urban expansion is changing land-use patterns

The footprint of Bandung’s built environment doubled between 1990 and 2000,
increasing from 61 square kilometres to 122 square kilometres (Table 1.2). The rate of

expansion of the built environment across the broader BMA is not known, and no
definitive study or spatial plan exists.
The rapid expansion of Bandung City’s footprint has had a direct impact on the area’s
hydrology. The area now at risk of flooding increased from 8 square kilometres in 1990
to 15 square kilometres in 2010 (Table 1.2). Land that is at risk of inundation places the
local population at great risk. The greater percentage of hard surfaces reduces
rainfall/surface water absorption. It also reduces the rate the declining local aquifers are
recharged. A study shows that 77% of new urban environment in the city of Bandung has
been built on farmland, or open space in the form of non-contiguous development (UN
Habitat, 2013).
Table 1.2. Changing land-use patterns in Bandung City
Urban parameters 1970 1980 1990 2000 2010

Built-up area (km2) 40.4 48.54 61.25 122.28 142.32
Non-built-up area (km2) 23.52 44.66 41.01 45.39 25.35
Total (km2) 63.92 93.2 102.26 167.61 167.67
Estimated runoff coefficient (C)
0.48 0.45 0.48 0.51 0.55
for the whole area of the city
Estimated relative urban
1.00 0.78 0.56 0.51 0.30
drainage capacity (1970=100%)
Recorded flood area in the city
2.5 3.5 8 9 15
and periphery (km2)
Note: This only covers Bandung City and not the whole BMA.
Source: Permana, A.S. et al. (2015), “Three sustainability advantages of urban densification in a concentric
urban form: Evidence from Bandung City, Indonesia”, in International Journal of Built Environment and
Sustainability, Vol. 2/3, http://ijbes.utm.my/index.php/ijbes/article/view/77 (accessed 22 June 2016).
Private motor vehicles dominate transport options

Total motor vehicle numbers in the BMA are increasing rapidly. From 670 941 units
in 2004, total vehicle numbers had increased to 3 130 358 in 2014 (Figure 1.13). This
equates to an average annual increase of 16.7%, considerably higher than in Jakarta,
where vehicle numbers increased by 10.6% annually during the period. In 2014, the vast
majority (80%) of the BMA’s vehicle fleet were motorcycles, and only 16% were
passenger vehicles (West Java Statistics, 2015a). Motorcycles lack catalytic converters,
which has contributed to the BMA’s poor air quality (Santosa et al, 2008).
Car ownership levels in the BMA rose to 61 vehicles per 1 000 people in 2014, and
370 if motorcycles are included, but are still low in comparison to other Southeast Asian
cities. Rates in Jakarta (324 vehicles per 1 000 people), Iskandar Malaysia (548 vehicles
per 1000 inhabitants) and Singapore (548 vehicles per 1 000 inhabitants) are significantly
higher. However, BMA car ownership rates are double those of West Java Province, with
32 vehicles per 1 000 inhabitants.

Figure 1.13. Total number of motor vehicles
Motor vehicles Motor cycles
3 500 000
3 000 000
2 500 000
2 000 000
2 296 314
1 500 000 1 918 221
1 000 000
916 083
669 632
500 000 499 904
412 303
498 493 581 423
258 638 302 735 320 037 303 554
0
2004 2005 2007 2009 2011 2013
Source: Statistics West Java (2004-05), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/index.php/pages/id/1212 (accessed 22 June 2016); Statistics West Java (2006), Jawa Barat
Dalam Angka/West Java in Figures, www.jabarprov.go.id/index.php/pages/id/1212 (accessed 22 June 2016);
Statistics West Java (2008a), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/root/dalamangka/dda2008.pdf (accessed 22 June 2016); Statistics West Java (2010), Jawa
Barat Dalam Angka/West Java in Figures, www.jabarprov.go.id/root/dalamangka/JabalDalamAngka2010.pdf
(accessed 22 June 2016); Statistics West Java (2012), Jawa Barat Dalam Angka/West Java in Figures,
www.jabarprov.go.id/root/dalamangka/dda2012.pdf (accessed 22 June 2016); Statistics West Java (2014a), Jawa
Barat Dalam Angka/West Java in Figures, http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-
Angka-2014.pdf (accessed 22 June 2016); Statistics West Java (2015a), Jawa Barat Dalam Angka/West Java in
Figures, http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-Dalam-Angka-2015.pdf (accessed June 2016).
Air pollution and greenhouse gas emissions

Air quality in Bandung ranks among the worst in Southeast Asia. PM10 levels
have improved; in 2001, the annual average level of PM10 was 60 µg/m3 in Bandung,
falling by 2008, to 51 µg/m3 (Figure 1.14). However, other pollutants, such as sulphur
dioxide and ozone, have not shown improvement. Jakarta’s annual average PM10
levels have declined more quickly than in Bandung, from 64 µg/m3 in 2001 to
48 µg/m3 in 2010, while in Singapore, annual average PM10 levels are generally
below 30 µg/m3. The transport sector and industry are the main sources of air
pollution in Bandung and account for 42% and 15% respectively of all air pollution in
the city (Sukenjah, 2014). Passenger cars were the main contributors to PM10, CO and
NO2 emissions. This indicates a need for enhanced regulation of Bandung’s transport
sector to reduce air pollution (Chapter 2). Bandung’s poor air quality is exacerbated
by its mountainous geography which prevents the gradual dissipation of pollutants
into the upper atmosphere (Sukenjah, 2014), trapping toxins in the local atmosphere.
Air pollution levels are most acute in summer and autumn and fluctuate throughout
the year, according to government statistics on suspended particulate matter
(Statistics Indonesia, 2015a).
The BMA’s CO2 emissions are rising. In Bandung City, the transport sector is a major
source of GHG emissions and accounted for 60% of emissions in the district

(Figure 1.15). This comes mainly from land-based transport, which is dominated by fossil
fuels. Domestic energy use was the secondary cause, since Indonesia’s electricity sector
is still dominated by fossil fuels.
Figure 1.14. Annual average ambient PM10 levels
(µg/m3)
Bangkok Bandung Cebu City Jakarta Singapore Surabaya WHO standard
90
80
70
60
50
40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Note: PM10 implies particulate matter with a diameter of less than or equal to 10 micrometres.
Source: Clean Air Asia- Cities ACT (2016), Country and City database, http://citiesact.org/data/countries-and-cities/# (accessed
16 October 2015).
Figure 1.15. Greenhouse gas emissions by sector in Bandung City, 2013

Annual CO2 equivalent gigatonnes
Other Waste/Wastewater, 130.51

Sources,
24.15
Industry, 63.41
Household, 690.95
Transportation, 1394.98
Source: Bandung City Environmental Management Agency (2013), “Pendataan gas rumah KACA Kota Bandung
Tahun 2013” [Kota Bandung greenhouse gas inventory 2013], Bandung City Government, Bandung.

Energy production and consumption
Energy production in Indonesia is largely dependent on fossil fuels (coal, natural gas
and petroleum). Combined, they accounted for 94.5% of final energy consumption (FEC)
in 2013 (965.7 million barrels of oil equivalent) (National Energy Council of Indonesia,
2016). The comparative FEC rate in Thailand in 2013 was 76.2% (OECD, 2015).
Petroleum (47%) represented the largest share, while natural gas (21%) and coal (16%)
were the other major contributors. Alternative and renewable energy (RE) sources
accounted for 4% of the national energy mix. This is less than half the rate in Thailand,
where RE accounted for 10.9% of FEC and less than one-third the rate of the EU-28
member states, which was 15% in 2013 (OECD, 2015). Electricity generation in
Indonesia is also largely dependent on fossil fuels. An abundance of coal has meant that
half (51%) of the nation’s power was generated using this non-renewable resource in
2013, in addition to 24% from natural gas and 13% using oil. The remainder came from
renewable sources, such as hydroelectric (8%) and other renewables (4%), mostly
geothermal (Figure 1.16). In contrast, Malaysia produces 92% of its energy using fossil
fuels, while the combined OECD nations generated 21% of their power from renewable
sources (IEA, 2015). Indonesia’s coal and electricity use is expected to grow five- to
sevenfold over 2012 prices (ADB, 2011).
Indonesia’s transport sector is the primary source of rising petroleum consumption,
which is predicted to double between 2010 and 2035, unless subsidies are reduced
(ADB, 2011).
Electricity consumption in the BMA is rising sharply. In 2014, the State Electricity
Company (Perusahaan Listrik Negara) West Java sold 6 667 gigawatt hours (GWh) in
the BMA, in contrast to the 4 733 GWh in 2006, a 41% increase (Statistics West Java,
2006; Statistics West Java, 2015).
Figure 1.16. Power generation in Indonesia by source, 2013
Geothermal
4% Others renewables
<1%
Hydropower
8%
Gas
24%
Coal
52%
Petroleum
12%
Source: National Energy Council of Indonesia (2016), “Key Energy Indicators”, http://statistik.den.go.id/
(accessed 8 April 2016).

Water management challenges

The BMA does not have sufficient supplies of water, which is crucial for ensuring
public health and local economic productivity. In Bandung Regency, only 8.3% of
households had running water in 2010 (Table 1.3). Households that are connected to
the network experience frequent interruptions and unstable water pressure
(Tarigan et al., 2016). For households that are not served by the piped network,
individual, private or informal water sources haphazardly make up this shortfall.
Access to clean water is inconsistent across the BMA. Whereas 88% of Bandung
City’s residents enjoy access to clean water, the equivalent figure in West Bandung
Regency was 51% (Table 1.5). Equally important are the very high non-revenue water
(NRW) levels (50%) in Bandung City (Moersidik et al., 2015). This can be attributed
to water leaks from the outdated pipe network, which is in need of repair and
replacement, exacerbated by inadequate metering devices. Water larceny is also an
issue (Tarigan et al., 2016). No further NRW data has been found concerning other
districts in the BMA.
Water demand is significantly greater than the present supply. The BMA
produced 267.06 million litres of clean drinking water daily, according to the 2014
water supply statistics of West Java, a slight increase of 1% on 2010, when it
produced 264.04 million litres daily (MLD) (Statistics West Java, 2015). In the same
period, the BMA’s water production capacity increased more rapidly, from
320.46 MLD to 331.52 MLD (3.5%), with a decrease of the clean water production
rate dropped from 82% to 81%. In 2014, 331.52 MLD were supplied to customers
(Table 1.4). However, water demand was already equivalent to 440.64 MLD in 2010,
and is anticipated to rise to 794.88 MLD by 2018, given the city’s growing population
(ADB, 2011).
Surface water meets 92% of Bandung City’s raw water supply, which is for
example, sourced from local rivers (PDAM Tirtawening, 2014). However, tributaries
of the Citarum River, which is another important water source and the lifeblood of
Bandung, is badly polluted (ADB, 2012). In particular, a significant proportion is
pumped from local aquifers in northern Bandung (which are in decline due to
unsustainable extraction rates). An additional 220 businesses in the BMA have
surface-water drawing rights equal to 10 973 million litres (daily). Of these licences,
60% have been allocated to businesses in Bandung Regency, while the manufacturing
sector uses 90% of the extracted surface water. The volume of water extracted from
aquifers in the BMA exceeds recharge rates (ADB, 2011). As a result, in some areas,
the water table has dropped by 1 metre or more on an annual basis and has led to
acute water stress and depletion of aquifers. Over-extraction of water is resulting in
land subsidence sometimes of up to 2 metres (Gumilar et al., 2013).
Bandung is one of 12 Indonesian cities with a centralised wastewater treatment
system, although it does not cover the entire urban population (Prihandrijanti and
Firdayati, 2011). Bandung City’s IPAL Bojongsoang plant has a daily capacity of
89 000 cubic metres and treats wastewater only for the eastern half of the city, around
35% of Bandung City’s population. However, its effective capacity of 40 000 cubic
metres is lower, due to operational and maintenance problems. Several additional
issues affect the BMA, such as illegal extraction of wastewater for irrigational
purposes from open sewer channels and ponds. Limited coverage also means that
households must install on-site septic tank systems to treat black water, while

greywater is discharged untreated into these open channels and eventually flows into
local rivers. Only 38% of the toilets in the City of Bandung are equipped with septic
tanks (Table 1.5).
Table 1.3. Bandung Regency water source
Number of households Percentage
Bottled water 190 492 22.9

Running water 69 227 8.3
Pump (individual wells and community wells) 103 019 12.4
Well (individual wells and community wells) 328 118 39.4
Other sources 141 132 17.0
Total 831 988 100.0
Source: Komarulzaman, A. (2013), “Global Development Network Report: Increasing access to water
services in Bandung Regency: A policy simulation exercise”,
http://gdn.int/admin/uploads/editor/files/GDN_PEM_report_cbps_bandung.pdf (accessed 12 October 2016).
Table 1.4. Water consumption in the BMA (MLD)
Potential capacity Effective capacity

Effective clean Licence Surface water
production of water production of water
water produced allocation extracted (m3)
supply supply establishment
2010 2014 2010 2014 2010 2014 2014 2014
Bandung City 2937 2792 2426 2244 83% 80% 25 12500
Bandung Regency No data available 132 10 231 942
West Bandung Regency No data available 40 702 256
Cimahi City 772 1045 630 847 82% 81% 23 26411
BMA 320.46 331.52 264.04 267.06 82% 81% 220 10 973 109
Note: The West Java municipality and regency boundaries that usually apply in the BMA are not applicable
to water services. For example, data is only available for Bandung City and Cimahi City, and not to Bandung
Regency and West Bandung Regency.
Source: Statistics West Java (2015b), Water Supply Statistics West Java Province 2014,
http://jabar.bps.go.id/new/website/pdf_publikasi/Statistik-Air-Bersih-Provinsi-Jawa-Barat-2014.pdf (accessed
13 May 2016); Statistics West Java (2015a), Jawa Barat Dalam Angka/West Java in Figures,

Table 1.5. BMA sanitation profile (2014)
Clean water access (%) Toilets with septic tank (%)

Bandung City 88.4 38.4
Bandung Regency 73.3 51.4
West Bandung Regency 50.5 59.0
Cimahi City 83.4 53.2
Sumedang Regency* 64.2 38.0
Province of West Java 65.6 56.6
Source: Statistics West Java (2015c), Indicators of Social Welfare in West Java 2014,
http://jabar.bps.go.id/new/website/pdf_publikasi/Indikator-Kesejahteraan-Rakyat-Provinsi-Jawa-Barat-
2013.pdf (accessed 13 May 2016).
The challenges of municipal solid waste management

Municipal solid waste (MSW) is increasing sharply. In 2014, the BMA produced
56 909 cubic metres of MSW daily, which is 92% more than the 29 689 cubic metres
generated in 2006 (Table 1.6). This is the result primarily of three factors; the BMA’s
expanding population; increased service coverage, and the increasing per capita waste
production rates, as the city has grown more prosperous. Given that Bandung Regency
has the largest population share in the BMA, it also produces the largest share of MSW
(24 293 cubic metres daily), while the smallest producer is Cimahi City (4 053 cubic
metres daily).
The level of MSW service coverage in the BMA dramatically improved between
2006 and 2014, rising from 36% to 68% overall. Much of this improvement can be
attributed to changes between 2013 and 2014 in Bandung Regency, where MSW service
coverage jumped from 26% to 60%, according to Statistics West Java (2015).
Nonetheless, this indicates that a significant proportion of the BMA still does not benefit
from any kind of MSW service, and some uncertainty remains as to how much waste is
actually produced in the BMA, because of the shortfall.
Table 1.6. Municipal solid waste management in the BMA
Solid Waste per

Quantity (m3) Waste treatment vehicles
capita (L/person/day)
Motor Dump
2006 2014 2006 2014 Carts
tricycle trucks
Bandung City 2.64 7.00019 6 179 247 17 296 083 - 60 70
Bandung Regency 5.03 7.00017 22 127 614 24 293 341 190 60 111
Bandung Barat - 6.99973 - 11 266 149 3 5 17
Cimahi City 2.73 7.00024 1 382 063 4 053 244 30 30 11
Bandung Metropolitan Area 4.10 7.00009 29 689 56 909 223 155 209
www.jabarprov.go.id/root/dalamangka/dda2008.pdf (accessed 22 June 2016); Statistics West Java (2015a),
Jawa Barat Dalam Angka/West Java in Figures, http://jabar.bps.go.id/new/website/pdf_publikasi/Jawa-Barat-
Dalam-Angka-2015.pdf (accessed 20 June 2016).

Risk and resilience in the BMA
Bandung’s location on the valley floor close to the Citarum River, surrounded by
volcanic peaks of up to 2 000 metres and with significant variation in rainfall between the
wet and dry seasons, pose manifold water-induced challenges in the BMA, especially in
south Bandung. This risk is exacerbated by the huge sprawl of urban development in the
north of Bandung. Between 1990 and 2008, residential and commercial construction has
expanded to cover 50%, and the northern part of Bandung catchment area, the location of
many aquifers supplying water to Bandung City, has declined to less than 60% of its
original extent (Tarigan et al., 2016). During the high volume and intense rainfall in the
rainy season from December to March, surface water flows from the north, where the
topography is elevated, down to lower-lying areas in the south. Mandalajati, Arcamanik
and Astana Anyar districts are among the most at risk of flooding. Inadequate municipal
solid waste management practices encourage the dumping of household waste in drains
and local water courses, which clogs the drainage system and exacerbates localised
flooding.
Bandung is exposed to several other acute environmental risks, including fires and
seismic events (Bandung City, 2015b). Bandung is located in an active earthquake zone
and experienced over two dozen earthquakes in the past year alone6. The most recent
major earthquake in 2009 (magnitude 7.0 on the Richter scale) killed 79 people, injured
hundreds of others and damaged many buildings in Bandung (Earthquake Track, 2016).
The active Tangkuban Perahu volcano is one of 17 volcanoes monitored by Indonesia’s
National Agency for Disaster Management (BNBP) in West Java. According to the
“Lloyd’s City Risk Index 2015-2025” the threat posed to Bandung by an earthquake is
identified as the greatest risk facing the city (Lloyds, 2015). The economic cost of such an
event could amount to USD 2.28 billion. The second-largest economic risk Lloyds
identifies is a volcanic event. Combined with an earthquake, these two factors could
account for more than half (57%) of the direct potential economic fallout if such an event
were to strike Bandung.
1.4. Bandung’s institutional landscape

The BMA lies at the centre of the island of Java, by far the most urbanised and
densely populated island in Indonesia. Java, with an area of 129 438 square kilometres, or
only 7% of the country’s total land area, has a population of 143.58 million but accounts
for as much as 57% of Indonesia’s population. The island has six of the country’s largest
and most densely populated provinces: the Special Capital Region of Jakarta
(DKI Jakarta), West Java (Jawa Barat), Central Java (Jawa Tengah), the Special Region
of Yogyakarta (DI Yogyakarta), East Java (Jawa Timur) and Banten. West Java is the
most urbanised province, after Jakarta and Riau (Sumatra).
As noted, the Bandung Metropolitan Area (BMA) consists of: i) Bandung City
(Kota Bandung), ii) Cimahi City (Kota Cimahi), iii) Bandung Regency (Kabupaten
Bandung) and iv) West Bandung Regency (Kabupaten Bandung Barat), as well as a part
of Sumedang Regency (Kabupaten Sumedang), which incorporates five neighbouring
districts; i) Jatinangor, ii) Cimanggung, iii) Tanjungsari, iv) Sukasari and v) Pamulihan.
Since the turn of the millennium, two new LGAs have emerged in the BMA: Cimahi City
(2004) and West Bandung Regency (2007) (Firman, 2009). The jurisdiction of the
BMA’s five local government authorities extends over 85 administrative districts
(kecamatan) and many hundreds more administrative villages (kelurahan) (Table 1.1).

The BMA was first designated one of seven National Strategic Areas (KSNs) by the
National Spatial Plan (RTRWN), under government regulation No. 26 of 2008. KSNs
play a significant role for central and provincial government in managing the BMA’s
urban development (Box 1.1). There is no commensurate level of metropolitan
governance presiding over the entirety of the BMA.
Box 1.1. Indonesia’s national strategic areas

The Indonesian National Spatial Plan (RTWN) identifies National Strategic Areas (KSN) as
priority spatial planning regions, because of their significant influence on Indonesia’s economy,
culture and environment. Seven metropolitan areas were identified as strategic areas in the
spatial plan:
• Jakarta Metropolitan Area: Jabodetabek-Punjur (presidential regulation No. 54, 2008)
• Medan Metropolitan Area: Mebidangro (presidential regulation No. 62, 2011)
• Bandung Metropolitan Area: Cekungan Bandung (West Java spatial plan – local
regulation)
• Semarang Metropolitan Area: Kedung Sepur (technical study on Kedung Sepur,
2013)
• Surabaya Metropolitan Area: Gerbangkertasusila (Kawasan Perkotaan Gresik-
Bangkalan-Mojokerto-Surabaya-Sidoarjo-Lamongan)
• Denpasar Metropolitan Area: Sarbagita (presidential regulation No. 45, 2011)
• Makasar Metropolitan Area: Maminasata (presidential regulation No. 45, 2011).
The Government of Indonesia has the authority to formulate spatial planning for national
strategic areas, which are implemented by presidential decree. To date, four presidential
regulations have been promulgated for Mebidanggro, Jabodetabek-Punjur, Sarbagita and
Maminasata. The Bandung Metropolitan Area’s (Cekungan Bandung) draft presidential decree
to concretise the city’s status as a KSN is currently under way. In the meantime, the area referred
to in the West Java Spatial Plan will continue to be regulated by local and provincial regulations.
Source:.Republic of Indonesia (2008) Rencana Tata Ruang Wilayah Nasional.
http://pelayanan.jakarta.go.id/download/regulasi/peraturan-pemerintah-nomor-26-tahun-2008-tentang-
rencana-tata-ruang-wilayah-nasional.pdf (Accessed 11 October, 2016)
Notes
1. It is larger than the Surabaya Metropolitan Area (SMA), or Gerbangkertasusila, whose

population is 6.2 million.
2. For the purposes of Section 1.2, Sumedang Regency has been excluded from all
calculations referring to the BMA. A lack of data makes it impossible to disaggregate
the five Sumedang Regency sub-districts in the BMA from the regency’s remaining
21 sub-districts. In addition, the 5 sub-districts located in Sumedang Regency
represent less than 5% of the BMA’s total population. Nonetheless, Sumedang
Regency is referred to where data is available, to provide the reader with a better
overview of the BMA’s five districts.

3. It is equivalent to USD 26.70 per capita monthly (IDR 279 358) in 2012. The poverty
line varies across the BMA and is substantially higher in Bandung City
(IDR 341 721) than in Cimahi City (IDR 318 871), Bandung Regency (IDR 241 947)
and West Bandung Regency (IDR 241 892). In 2013, USD 1 = IDR 10 461.24,
http://data.worldbank.org/indicator/PA.NUS.FCRF (accessed 22 October 2015).
4. This decline may partly be explained by the methodological change to the

measurement of the working-age population from 10 < to 15 < years of age.
5. For the purposes of Section 1.3, Sumedang Regency has been excluded from
calculations referring to the BMA, for reasons outlined in Section 1.2. However, it is
referred to where data is available, to provide the reader with a more complete
overview of the BMA’s five districts.
6. Past year refers to 2015-16 as presented on Earthquake Track
(http://earthquaketrack.com/id-30-bandung/recent) (accessed 2 September 2016).

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m/pdf/h23_result03_en.pdf.

2. BANDUNG’S EMERGING GREEN GROWTH OPPORTUNITIES – 45
Chapter 2
Bandung’s emerging green growth opportunities
Chapter 2 aims to identify green growth opportunities and analyse policies to promote
green growth in the Bandung Metropolitan Area (BMA) pertaining to the following six
areas: land use and transport; water resource management; solid waste management;
energy; housing and buildings; and green goods and services. The analysis focuses on
the following:
1) developing BMA-wide land use and public transport strategies
2) accelerating investment in water and solid waste as essential urban services
3) investing in renewable energy and increasing energy efficiency
4) promoting green buildings and combatting urban slums

46 – 2. BANDUNG’S EMERGING GREEN GROWTH OPPORTUNITIES
Key findings
• Given the continued urban development pressure, a strong BMA-wide land-use policy
is required to enhance urban resilience. The rapid urban expansion in the BMA is
increasing the city’s exposure to flooding, as people settle and build in flood-prone
areas. Vulnerability and risk assessment (VRA) and zoning regulations to restrict land
use in inappropriate locations should be urgently considered. The BMA should also
envision a metropolitan spatial land-use plan that leverages policy synergies between
transit-oriented development and other key sectoral policies.
• Bandung needs to speed up investment in public transport systems, including the
proposed light-rail transit (LRT). At the same time, more efficient use of existing transit
modes with improved service quality (reliability and safety in particular) could be
pursued. The majority of air pollution and CO2 emissions in the BMA come from the
transport sector. Bandung must strengthen air pollution monitoring mechanisms and
increase transparency by making data available to the public. In addition, Bandung
should consider more extensive measures to promote low-emission vehicles.
• Water supply, wastewater treatment and solid waste management in the BMA need
improvement. Accelerating investment in these essential urban services would ensure
that the BMA continues towards a more inclusive, resilient and sustainable city.
Wastewater treatment capacity is still not sufficient, and local waterways are considered
among the most polluted globally. No effective policy instruments have been devised to
reduce unsustainable extraction of ground water and/or reduce the consumption of water
by the industrial sector. This has led to many negative urban environmental
externalities, such as land subsidence. Demand-side policies to curb water usage
(applying a more progressive water tariff structure) should be considered. The same
recommendations should be applied to municipal solid waste services, to reflect the true
cost of the service provided.
• Bandung could take a leading role in achieving Indonesia’s new national target to
increase the share of renewable energy (RE). Indonesia is largely dependent on fossil
fuels, which represented 94.5% of final energy consumption in 2013, higher than in
neighbouring countries such as Thailand (76.2%). Among different options, solar and
waste-to-energy represent promising and practical ways of achieving such a goal.
• Housing and building present key opportunities for green growth, given the increasing
resource consumption in the sectors. The proposed green building certificate, linked
with a mandatory building permit, could be a good solution for guiding eco-friendly
building plans and should be expanded to the whole BMA. Upgrading informal
settlements in Bandung remains a challenge requiring a comprehensive approach for
enhancing urban resilience.
2.1. Developing BMA-wide land use and public transport strategies

Spatial land-use planning is an organising principle linking urban systems into an
integrated whole. This tool can anchor other sectoral urban policies. How well such a tool
is utilised may determine residents’ access to public services and employment
opportunities, energy demands and energy efficiency of the transport sector, and a city’s
capacity to adapt to climate change. It directly affects public finances through the
demands placed on maintaining existing infrastructure or the construction of new
infrastructure, such as roads, water treatment plants or drainage systems. Spatial land-use
planning decisions that will be made over the next 15 years (the time frame over which it
is anticipated that more than two-thirds of the infrastructure for public services will be

built in Southeast Asian cities), will lock in the spatial growth of these urban areas, their
energy use patterns and their greenhouse gas (GHG) emissions trajectory for decades, if
not centuries, to come (Global Commission on the Economy and Climate, 2014). This
section deals with land use and transport together, because many of the challenges
Bandung and other Southeast Asian cities face, as well as many of the suggested
approaches or measures required for resolving them, are pertinent to each other and
interconnected.
A strong BMA-wide land-use policy could enhance urban resilience
Bandung is exposed to several natural hazards, due both to its topographic features
and to its location in a tectonically active zone. In recent years, the BMA’s population has
grown in outlying urban districts in the north, especially outside the limits of Bandung
City (Figure 2.1). The BMA’s built-up are increased from 34282.49 square kilometres in
1991 to 65812.86 square kilometres in 2012 (Ardiwijaya et al, 2014). The rapid urban
expansion has increased the city’s exposure to flooding, as people are settling and
building in flood-prone areas (Tarigan et al., 2016). The northern half of Bandung,
encompassing territory in four of the BMA’s five local government units (LGUs), has
been the focus of intense and uncoordinated development pressure (ibid). The impact of
these new population centres in undesirable geographical locations in the north may
increase the risk of flooding in southern parts of the city. Indonesia’s Ministry of Public
Works (2008) estimates that in excess of 25 million people live in vulnerable situations
across Java.
Given the continued urban development pressure, a strong land-use policy is
required to enhance urban resilience in the BMA. Bandung’s vulnerability to floods and
other natural disasters is partially attributed to poorly enforced zoning regulations and
land-use control, which is exacerbated by the concentration of poorly prepared urban
populations in highly exposed parts of the city. Zoning tools in the BMA must be
implemented and regulated effectively to restrict land use in unsuitable locations. Land-
use policy must be applied across the entire BMA, as risks are also incurred by a lack of
inter-governmental co-ordination on hazard mitigation planning. Although a general
master plan for the BMA has been prepared by the provincial government, no effective
land-use plan has been set up. The delivery of building permits in different local
government areas in north of Bandung, for example, is at cross purposes with hazard
reduction efforts at a metropolitan scale (Hudalah et al., 2010). The BMA should draw
up a metropolitan spatial land use plan binding the local governments. The formation of
the metropolitan institution will be a good opportunity to advance this idea (see
Chapter 4).
Vulnerability and risk assessment (VRA) and asset inventory is another
important component that must be integrated. Up to now, the BMA has not prepared
and disclosed natural hazard maps, implying that the BMA is by and large
underprepared. Preparation is critical to anticipate the intensity, frequency and extent of
environmental hazards, as well as to identify vulnerable urban population groups, assets
and infrastructure. A VRA and asset inventory would provide such information and
provide a basis to manage and limit damage, while also considering the cost and time
required to recover from a natural disaster, among other factors. Bandung’s approach to
hazard assessment could expand upon that of other Southeast Asian cities such as Cebu
(Box 2.1).

Figure 2.1. The Bandung Metropolitan Area and its expanding urban environment
Source: Bandung City (2016), “Answers to the OECD case study questionnaire”, internal document, unpublished;
Schneider, A. et al. (2015), “A new urban landscape in east-Southeast Asia, 2000-2010”, Environmental Research
Letters, Vol. 10(3), http://dx.doi.org/10.1088/1748-9326/10/3/034002.

Box 2.1. Hazard assessment in Metro Cebu, Philippines
Cebu is the regional capital of the Central Visayas province, located on the central-eastern
flank of Cebu Island in the centre of the Philippine archipelago. The Metropolitan Area of Cebu
(Metro Cebu) extends along a narrow coastal strip of territory that is sandwiched between
rugged mountain ranges that traverse the island’s north-south spine and the Strait of Cebu. It is
exposed to environmental risks posed by intense climate and geological hazards, such as floods
and earthquakes. Metro Cebu consists of seven city and six municipal local government units
(LGUs). Before the formation of the Metro Cebu Development and Coordinating Board
(MCDCB) in 2011, no formal basis for metropolitan planning and development was in place.
Adopting the Philippine government’s Disaster Risk Reduction Management Act (No.
10121) under Cebu City Executive Order No. 12-6, Cebu City is mandated to establish Cebu
City Disaster Risk Reduction Management Council which undertakes detailed studies to identify
physical and environmental features that make it vulnerable to natural hazards and pose a risk to
the metropolitan population. This hazard risk assessment has resulted in thematic maps as well
as disaster-risk reduction management (DRRM) plans in all 13 local government areas of the
Cebu metropolitan area. Legislation is also in place to provide for sufficient financial resources
to be allotted to local DRRM programmes. However, more work needs to be done to link the
identification of these hazardous areas with the location of the populations at risk, critical
infrastructure and community assets, to build a more sophisticated and long-term VRA.
Source: OECD (forthcoming) Urban Green Growth in Cebu, Philippines.
Green space and urban agriculture can create policy complementarities

Green space (urban parks, forests, farmland, etc.) can offer cities long-term, multi-
faceted benefits, including enhancing urban resilience and amenities for citizens and
avoiding urban heat island effects. Increasing green areas is also a key factor to increasing
atmospheric oxygen and promoting carbon sequestration. The Ministry of Public Works
of Indonesia has proposed a mandatory green space target (Spatial Planning Law
No. 26/2007). This aims to ensure that every city or regency allocates sufficient open
space, with a target of 20% public open space and 10% private open space. To support
such targets, the ministry also initiated the Green Cities Initiative which encourages local
efforts in eight attributes including green planning and design and green open space. It
has been implemented in 112 cities/regencies in Indonesia.
Bandung City is already pursuing more ambitious targets, guided by the green city
master plan (25% of land to be used for public space; 15% of land for green open space).
The city is also actively promoting urban farming. Although urbanisation is increasingly
making urban land more competitive with other purposes, urban farming can demonstrate
multi-faceted benefits for urban residents such as providing local food, creating jobs for
urban poor and reducing their food expenditure, promoting better use of underutilised
land in cites, enhancing retention of rainwater and thus contributing to enhance resilience
to floods, and providing amenities in cities. Mayor of Bandung is an active advocate of
urban farming and encourages urban farming in Bandung in more than 1 500 spots in
Bandung to be used for urban farming activities. Training was given at no cost to
participants by the city council in collaboration with Bandung Berkebun, a community-
based initiative promoting the use of urban spaces for farming.1
Given that urban agglomeration is encompassed beyond the border of Bandung City to
the entire BMA, such initiatives would be more effective if the BMA’s four other local

government units could work with Bandung City with co-ordinated targets and policy
instruments.
Investing pro-actively in urban transport infrastructure

Bandung’s population growth and strong economic development continue to increase
the need for pro-active infrastructure investment. As the BMA’s population has grown,
traffic volumes have expanded by 10% to 15% annually (Sukenjah, 2014), increasing
average weekday commutes from 30 to 65 minutes between 2000 and 2009, and more than
an hour on weekends (Syabri, Pradono and Soegijanto, 2013). Only an estimated 20% of
Bandung’s residents use public transport (AFD, 2014). The modal share of urban public
transport in Indonesia was only 23% in 2014, although it is anticipated this will increase to
32% by 2019 (KPPN, 2014). As the BMA’s urban footprint has expanded without
appropriate mass transit options, congestion has become a major issue, and central areas of
Bandung City are clogged and polluted, diminishing the quality of life. As daily trip
numbers increase, the city’s transport infrastructure will be under more strain, with even
longer travel times under a business-as-usual scenario (Lubis, Isnaeni and Nurjaya, 2003).
This will necessitate enhanced public transport policy and investment.
Although until recently transport infrastructure in the BMA has largely favoured the
development of roads (Tarigan, 2016), Bandung City has recently been working on plans to
construct new public transport infrastructure. “Better Urban Mobility 2031” is its
integrated and comprehensive urban mobility plan. The implementation of this vision
incorporates four main strategies: i) an integrated and compact city (live-work-play)
concept, through a combination of land-use and traffic-demand management (TDM)
measures; ii) strengthening the road network; iii) improving the role of public transport by
developing a mass rapid transport (MRT) system, as the backbone of an integrated transport
system supported by a feeder system; iv) using technology to influence behaviour by
focusing on three critical aspects: traffic management, green transport and smart transport.
Bandung City’s high population density (14 687 people per square kilometre in 2014)
provides a good basis for viable public transport. This density is almost twice that of
Surabaya City’s 8 562 people per square kilometre (Statistics East Java, 2015).
The centrepiece of the vision is a new seven-line light rail transit (LRT) system.
This will require significant investment and infrastructure planning and serve the BMA’s
contiguous urban area and LGUs. The first LRT line will connect a newly proposed high-
speed rail station in Teknopolis, the new planned urban development located in the east of
the city, to Bandung’s current urban centre (Box 2.2). While the LRT is intended to be
operational for the opening of the new HSR, the connection between the existing city
centre and the new station is likely to pose the greatest challenge for the HSR project, and
it is thus important to integrate the two. The central, provincial and local governments
will need to co-ordinate the investment necessary. The provincial government has an
important role to play in developing the LRT, because the governor of West Java
Province issues the recommendation for the city to implement the project.
Bandung should introduce a mechanism to guide urban development along the
seven transit corridors well before the LRT is built. It is possible that government
functions of West Java Province will move to one of the new towns to be built along the
high-speed rail line (HSR) west of Bandung. This underscores the importance of public
transport and transit-oriented development (TOD) to reduce dependence on private cars.
Four concrete proposals that could be considered include:

• Secure extra land around the proposed LRT stations for public use, to ensure
sufficient space for pedestrians, bikers and feeder transport systems. Surabaya has
developed an integrated transport plan that incorporates feeder services,
pedestrian infrastructure and park-and-ride facilities incorporating commercial
spaces as part of its proposed LRT network.
• Quality connections between LRT stops and adjacent commercial and residential
areas should be carefully designed. A mechanism could be created encouraging
private developers to cover some of these costs.
• Use floor area ratio (FAR) regulations in combination with incentives and
disincentives to encourage high-density development around the stations (for
example, FAR bonuses should be granted to development that offers public space,
and fees imposed on development under the desired density.
• Introduce station-area master plans to guide development, especially in relation to
the first and second points.
Compact-city policies from Japan and Korea could be used as a starting point to
develop such a mechanism (OECD, 2012a).
Eight more programmes will be implemented during the local medium-term
development plan 2014-2019 for urban mobility in Bandung City. Projects that have
already been implemented include: bike sharing, free school bus services, car sharing and
car emissions testing, which also feeds into the clean emission parking areas initiative. Most
of these projects are public-private partnerships (PPP). To accelerate such large-scale
investments in urban transport, Bandung should consider strengthening financial
arrangements for infrastructure investment. See chapter Chapter 4 for further elaboration on
this.

Box 2.2. An emerging Jakarta-Bandung urban corridor
Recognition is emerging in the literature of a mega-urban region stretching from coastal

Jakarta to Bandung (Firman, 2009; Dorodjatoen, 2009). This area, including Greater Jakarta
(Jabodetabek: that is, Jakarta, Bogor, Depok, Tangerang and Bekasi) and the BMA had a
population of 38.1 million in 2015. At this point however, little official government recognition
has been devoted to this urban agglomeration.
Regional links were strengthened with the construction of the new Cipularang toll road in
2005. Average daily traffic flows along the new highway between Bandung and Jakarta have
increased annually by 100% in the last ten years (Dorodjatoen, 2009). The region will benefit
further from a new high-speed rail link. The proposed USD 5.5 billion Jakarta-Bandung high-
speed railway will sharply reduce travel times along the 150-kilometre route, to 40 minutes from
the present four-hour journey. The railway is scheduled to open in 2020, and it is estimated that
57 000 passengers will use the line daily, tripling to 171 000 by 2050 (Yachiyo Engineering,
2012). The high-speed line will be part of a much grander 750-kilometre railway traversing the
densely populated island of Java, from Jakarta in the west to Surabaya in the east via Bandung,
Cirebon and Semarang. It is anticipated that four stations will be located along the Jakarta-
Bandung route, in i) Jakarta Halim Perdanakusuma (with a rail connection to the Jakarta airport),
ii) Karawang Tegalluar, iii) Bandung Walini station and iv) Bandung Gedebage station. A
consortium of Chinese and Indonesian state-owned companies was appointed to oversee the new
line’s development in 2015, when the Indonesian government agreed to use Chinese high-speed
rail technology. Construction of the new line began in January 2016.
The new line is part of the government’s policy for Indonesia’s economic development.
Investment in Java’s rail infrastructure will revolutionise mobility on an island with a population
of more than 140 million, driving economic development for years to come. This will be
particularly beneficial for a city like Bandung, given its growing number of service-based
industries, such as its tourism and hotel sector. The railway also has the potential to reduce the
number of vehicles arriving in Bandung from Jakarta on weekends. It seems plausible that
workers in Jakarta may relocate to Bandung, to benefit from the city’s milder climate and higher
quality of life, while continuing to commute to the capital daily on the train. This could
transform the perception of Jakarta and Bandung as two separate cities, since in some cases, it
might take longer to commute from suburban Jakarta than from Bandung on the high-speed
train. This should provide the impetus for investment in transport infrastructure. In addition to
the substantial investment and new jobs the HSR project will create in the short term, the
competitive economic advantages for Bandung should also have agglomeration effects attracting
new investment to the city.
Source: Yachiyo Engineering (2012), “Feasibility Study for Promotion of International Infrastructure Projects in
FY2011: Study on the High Speed Railway Project (Jakarta-Bandung Section), Republic of Indonesia”,
www.jetro.go.jp/ext_images/jetro/activities/contribution/oda/model_study/infra_system/pdf/h23_result03_en.pdf
(accessed 14 March 2016); Dorodjatoen, A.M.H. (2009), “The emergence of Jakarta-Bandung Mega-Urban
Region and Its future challenges”, Jurnal Perencanaan Wilayah dan Kota, Vol. 20(1), pp. 15-33; Firman,
T. (2009), “Decentralization reform and local-government proliferation in Indonesia: Towards a
fragmentation of regional development”, Review of Urban and Regional Development Studies,
Vol. 21(2‐3), pp. 143-157.

Improving the connectivity, reliability and safety of existing para-transport

In the BMA, paratransit options and private vehicles are the primary modes of
transport, which has caused crippling traffic congestion (Tarigan, 2016). Minibuses
(angkot), motorcycle taxis (ojek), non-motorised pedicabs (becak) and even horse-drawn
buggies (delman) provide an essential service for moving people about the city (Syabri,
Pradono and Soegijanto, 2013). The minibus, the central mode of public transit, accounted
in 2009 for about 31% of all motorised trips. In total, a fleet of 15 000 minibuses (with 12
to 14 seats) covered 84 fixed routes in the BMA, while only 97 buses (with 45 to 50 seats)
covered 7 routes in Bandung City, and it is estimated that a further 35 000 paratransit units
operate countless non-fixed routes across the city (SNCF, 2010). Although they are not yet
authorised legally, motorcycle taxis are also gaining popularity (20 000 operators in 2009)
because they can slip through congested traffic and because of the wide range of
destinations they service (Syabri, Pradono, Soegijanto, 2013). Due to heavy traffic, low
comfort levels and average speeds, the minibuses are unreliable. The large number of them
and motorcycle taxis on Bandung’s streets obstruct traffic flows and cause congestion.
Despite these problems, there is much potential to improve use of existing transport
modes in Bandung. Urban transport systems must be integrated holistically in what is
referred to as “last half-kilometre” or “last mile” connectivity. This ideally means that a
passenger should be able to leave home and walk less than 500 metres to reach a bus stop or
train station connecting to a larger public transport network. Connectivity is the single most
important characteristic of any fully functional and profitable urban public transport system.
This includes both inter-city connectivity to high-speed trains or regional airports, in
addition to homes, businesses or shopping/recreational destinations. Bandung’s becak offer
an environmentally friendly last-mile service that transport clients on short local trips, as
well as a critical source of employment for about 20 000 unskilled workers (Syabri,
Pradono and Soegijanto, 2013). Bandung City should consider integrating the planned
large-scale public transport system, such as light-rail transport (LRT) or the electric bus
rapid transport (TMB) system, into a broader network serviced by local feeder buses and
taxi services. Paratransit may be viewed as an inferior service to conventional and more
sophisticated mass public transit systems, but it could form the basis of a complementary
system to Bandung City’s proposed LRT and TMB networks in the medium term. In
addition, paratransit can navigate Bandung’s narrow roads and mountainous geography,
providing access to neighbourhoods that larger vehicles may not be able to service. This
would go some way toward reducing resistance from angkot associations.
To unleash such potential, regulating paratransit for reliability and safety is an issue
the city needs to address immediately. These initiatives must be pursued at the
metropolitan level, because, as Bandung City’s previous efforts to reduce congestion
suggest, in its attempt to regulate the number of minibuses (angkot) within its municipal
borders, the policies of neighbouring municipalities will have a direct effect on the outcome
(GIZ, 2002). Minibuses licensed outside the city were freely able to drive into Bandung
City, negating its efforts to reduce congestion through regulation. Such a proposal should be
complemented by an integrated financial payment system using a single transport card, like
the Oyster card in London, which functions across the metropolitan area’s entire public
transport network. This would incorporate future MRT, LRT or BRT lines and local bus
services. The French Development Agency (AFD) is currently investigating low-carbon
modality options for Bandung and the reorganisation of Bandung’s central railway station

to improve accessibility and the potential for an intermodal development project. Such
studies should include options to improve use of existing paratransit modes.
Managing the increasing demand for private vehicles through pricing mechanisms
Bandung also needs to manage the increasing demand for private vehicles. Pricing
mechanisms such as parking fees can be an effective tool. The City of Bandung is
currently considering increasing the city’s parking tax, which will be applied to all the
city’s private parking facilities. This will not only facilitate the use of public transport but
raise revenues that allow the city to increase green investment. Parking taxes/fees are one
of a few revenue sources from which city governments can benefit. ICT could further
improve the instruments’ effectiveness; for example, the city could apply dynamic pricing
(applying a higher tax/fee for peak hours) for greater impact. The city could also reduce
the taxes/fees for low-emission vehicles, to encourage their use. However, such traffic
demand management mechanisms must be combined with the provision of alternative
public transport modes for political buy-in and general public support. This underlines the
importance of focused investment in public transport and of a comprehensive policy
approach on land use and transport. The experience of congestion charges in London and
Stockholm could provide useful insight (OECD, 2013).
Tackling transport-related air pollution
Bandung’s streets have become heavily congested because of the large number of
commuters reliant on private motor vehicles during the week and from visitors from
Jakarta and other cities in West Java on weekends. This has resulted in rising air pollution
levels, with the accompanying health and economic costs, in the form of lost time and
productivity. Air pollution in Bandung is mostly attributed to transportation
(Oanh, 2012). Given the serious risks to public health, the government must do more to
address Bandung’s air pollution levels. In 2015, Bandung City received a Blue Skies
Award as the least polluted metropolitan area in Indonesia (Puspitasari, 2015). This
represents a sharp turnaround from 2006 and 2008, when it was designated by the
government as Indonesia’s “dirtiest” metropolitan area (Prihandrijanti and
Firdayati, 2011). Nonetheless, Bandung’s current air pollution levels still substantially
exceed the World Health Organisation’s (WHO) air quality standards. Besides,
Indonesia’s transport sector was the source of 23% of all energy-related GHG emissions
in 2010, of which 91% derived from the road network (MoT and GIZ 2014).
Air quality in the BMA is managed through a range of municipal government acts
and regulations. The national and provincial government also plays an important role in
regulating air quality (Sukenjah, 2014). In 1999, the Ministry of the Environment
established the National Ambient Air Quality Standards (NAAQS) to regulate air
pollution in Indonesia. Contemporaneously, a national air quality monitoring network
system (AQMS) was established in ten large cities across Indonesia, including Bandung,
to continuously monitor carbon monoxide (CO), sulfur dioxide (SO2), nitrogen dioxide
(NO2), ozone (O3) and particulate matter of less than or equal to 10 micrometres (PM10).2
However, data on PM2.5 is not collected. In Bandung City, five continuous air quality
monitoring stations were installed as part of the AQMS (Dago Pakar, Aria Graha,
Tegallega, Batununggal and Cisaranten Wetan). Soon after they were installed, two of
these units ceased to function due to a lack of maintenance (Sukenjah, 2014) and only
three of the five pollutants are measured, because the instruments have been damaged
(CAI-Asia, 2009).

Table 2.1. Indonesia’s national ambient air quality standards and WHO guidelines
Average AAQS in Jakarta WHO
Pollutant NAAQS (µg/m3)
time (µg/m3) Guidelines
SPM 24 hours 230 230 -
1 year 90 90 -
PM10 24 hours 150 150 50
1 year - 20
SO2 1 hour 900 900 -
24 hours 365 260 20
1 year 60 60 -
NO2 1 hour 400 400 200
24 hours 150 92.5 -
1 year 100 60 40
O3 1 hour 235 200 -
8 hours - - 100
1 year 50 30 -
Pb 1 year 1 - 0.5
CO 1 hour 30 000 26 000 30 000
8 hour - - 10 000
24 hours 10 000 9 000 -
Note: SPM = suspended particulate matter; PM10 = particulate matter of a diameter less than or equal to
10 micrometres; SO2 = sulfur dioxide; NO2 = nitrogen dioxide; O2 = ozone; Pb = lead; CO = carbon
monoxide; WHO = World Health Organisation.
Source: CAI-Asia (2009), Indonesia Country Profile: Focus on Smaller Cities,
www.citiesforcleanair.org/documents/FINAL%20DRAFT%20Indonesia%20GTZ%20Country%20Profile%205
Oct09.pdf (accessed 8 December 2015); CAI-Asia (2010), Clean Air Management Profile: Indonesia,
http://cleanairasia.org/wp-content/uploads/portal/files/documents/CAMP_Indonesia_-_2010_Edition.pdf
(accessed 15 September 2016); Krisnawati, L. (2008), Implementation of Environmental Sustainable Transport,
Indonesia, www.unep.org/transport/pcfv/PDF/pathumbai_ESTinIndonesia.pdf (accessed 15 September 2016).
Systematic air pollution monitoring framework for the BMA should be established
urgently as a collective effort of all levels of government. The Ministry of the Environment
could consider adding PM2.5 to the current NAAQS framework. It could also revise the
standards so that they are more coherent with global standards. The NAAQS standards are
well below WHO standards for some pollutants (Table 2.1). Since provincial governments
can set more aggressive air pollution standards than the NAAQS, an option for the BMA is
to co-ordinate with the West Java Province and consider strengthening their standards for
vehicles and industries as well as ambient air quality standards as implemented in Jakarta
(Table 2.1).3 This is most pressing considering the peculiar local contexts of the city of
Bandung -a basin surrounded by high rise mountains where air pollutants are trapped.
Alternatively, Bandung and other four municipalities could be given flexibility in setting
more stringent air quality standards than provincial and national regulations. Cities lack the
mandate to set such standards under the current regulation. The importance of this is to
empower city governments which generate the highest amounts of emissions to take action.
In fact, Bandung manages air quality control through their own legislation and regulations
(bylaws). This is achieved through regular vehicle emission test, car free days on Sundays
lasting for a period of four hours from 06:00 a.m. to 10:00 a.m. in some streets, clean
emission zones exclusively accessible to low emission vehicles and regular air quality
modelling with research universities (Sukenjah, 2014). Successful implementation of such
programmes by cities could encourage the national government to introduce such

decentralised mechanisms. Besides, Bandung City should address the maintenance of
AQMS immediately.
Several government agencies do conduct their own monitoring initiatives in addition to
the two monitoring networks mentioned above. The Ministry of Health and Ministry of
Transport collect data using mobile devices in 16 locations. The data that is collected is not
shared between different agencies, however. The BMA’s five local government units
(LGUs) could share the data and co-operate with other government bodies to improve
public health. The use of ICT could provide useful options (see Chapter 3). Bandung City
will soon begin real-time air quality monitoring linked to the city’s command centre
(Bandung City, 2016). A central challenge, however, is the cost of equipment.
Innovative ideas are also needed to reduce air pollution from private vehicles.
Bandung’s Blue Skies programme, initiated by the Ministry of Forestry and the
Environment, aims to reduce the levels of air pollution. This promotes low-emission
vehicles by awarding a certificate to cars that meet certain emission standards. Preference is
given in Bandung City in designated public parking areas to cars that have the certificates.
Such initiatives could be expanded to the surrounding LGUs in the BMA as well as to
private parking facilities. The BMA should also consider active participation in national and
international initiatives for sustainable urban transport (Box 2.3).

Box 2.3. National and international initiatives for sustainable urban transport
Indonesia’s medium-term development plan 2015-2019 identifies several strategic urban transport
challenges. It seeks to develop environmentally friendly transport infrastructure resilient to the impact of
climate change. The medium-term plan also prioritises renewable fuel sources as well as the introduction of
Euro 4 fuel standards (replacing Euro 2) and better managed transport networks (Bappenas, 2014). The
medium-term plan also specifically targets the declining role of urban public transport and encourages a modal
shift from private vehicles through Transport Demand Management (TDM) and scaling up of Bus Rapid
Transit (BRT) and Mass Rapid Transit (MRT). For example, the national government is underwriting 49% of
the costs of Jakarta’s new MRT line. It also seeks to improve accessibility by enhancing pedestrian facilities
and non-motorised transport (NMT).
Indonesia’s Sustainable Urban Transport Programme (NAMASUTRI) targets urban transport and
urban passenger transport in particular, such as commuter rail or bus rapid transit, to encourage development of
transport infrastructure that will serve the needs of Indonesia’s rising urban population.
Complementing the medium-term plan, the national climate change policy will also play an important role
in the shift towards energy-efficient transport modes and non-motorised transport (NMT). The development of
public transport systems and NMT infrastructure requires sectoral strategies and government regulation, such as
the Minister of Transport Decree #7/2010 strategic transport plan (Renstra).
There are also several programmes funded by international donors that reinforce city governments’
capacity to improve urban transport options. One is the Sustainable Urban Transport Project (SUTIP)
funded by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in close co-operation with
Bappenas. The SUTIP initiative began in 2009, and has provided legal and regulatory policy advice. It has also
contributed to preparation for the National Road Map on CO2 mitigation, the Grand Design in Urban Transport
(National Urban Transport Policy) and the preparation of National Medium Term Development Plan for urban
transport. The SUTIP initiative is currently working with four partner cities (Palembang, Bogor, Solo and
Yogyakarta) and provides training, advice on public transport restructuring and improvement schemes, TDM
measures and non-motorised transport development.
Source: Based on Bappenas (2014) National Medium Term Development Plan 2015-2019 (RPJMN 2015-2019),
http://www.bappenas.go.id/files/7714/1557/5291/RT_RPJMN.PDF (accessed 13 October 2016).
2.2. Accelerating investment in water and solid waste as essential urban services
The provision and management of essential urban services should form the basis of the
BMA’s urban green growth agenda. In some areas of the BMA, water supply, wastewater
treatment and solid waste management need development. The lack of wastewater
treatment capacity has resulted in local waterways that are considered to be among the most
polluted in the world and ground water levels are declining and under great pressure. The
resulting negative urban environmental externalities have included land subsidence and the
associated impacts on Bandung’s built environment and local infrastructure
(Gumilar, 2013). The deficit in urban service provision is more pronounced in outlying
districts, where urban development has been greatest. The BMA-wide master plan defined
by the West Java governor’s law in 2015, including sectoral plans on water and solid waste,
is a positive development. It should be used as the basis to develop further metropolitan
policies. These essential urban service sectors fall under the purview of local government in
Indonesia and thus represent an opportunity for green growth in the BMA. Prioritising them
could help BMA become a more inclusive, resilient and sustainable city.

This section deals with water resource and solid waste management together, as many
of the challenges they face, and many of the approaches for solving them, are
interconnected. Policies to enhance urban resilience against floods are also discussed.
Ensuring a clean water supply

In Indonesia, the government of Indonesia is responsible for water resources,
provincial governments purchase this water in bulk for treatment, and city governments
(municipal water utilities) buy the treated water for distribution to end users. In the BMA,
there are three local water supply companies (Perusahaan Daerah Air Minum, PDAM).4
They service approximately half (48.2%) of the BMA’s urban areas through the city’s
network of running water, and 8.91% of households in peri-urban areas (Maryati and
Humaira, 2015). In addition to PDAMs, water services are provided through
(Komarulzaman, 2013): i) direct government provision via the public works department
for populations not served by PDAM due to profitability issues, usually in the form of a
small-scale water facility at the village level; ii) the private not-for-profit sector; and
iii) private sources at the household level. In Bandung Regency, the number of people
served in this way exceeds those served by PDAMs. The number of households with
running water provided in Bandung City by PDAM Tirtawening Bandung covers 62% of
the LGU’s population (Moersidik et al., 2015). The comparable figure for residents in
West Bandung Regency was only 8.3% (Komarulzaman, 2013). The wide disparity
between Bandung City and other districts in the BMA is exacerbated by a waiver that
new customers must sign agreeing not to contest PDAM’s inadequate service levels
before any new connection is established.
In recent years, the BMA’s population and built environment have expanded rapidly, at
the expense of water and sanitation infrastructure. Bandung City’s municipal water utility,
PDAM Tirtawening Bandung, expanded its service coverage by 0.65% annually in the past
ten years, while the population grew by 1.42% each year, and has never achieved its service
coverage expansion targets (Moersidik et al., 2015). Thanks to a service coverage deficit
and substantial variation between districts, the number of people reliant on informal water
services continues to grow (Statistics West Java, 2011). Even those who do enjoy access,
only have as little as two hours of water supply daily and are reliant on filling tanks during
this short period to store sufficient water for the rest of the day. The study of Masterplan
Drainage in the BMA (2009) notes that the availability of raw water for the source of water
supply will slightly decrease, given the increase of population and environmental problems
such as: land subsidence, ground water extraction, river pollution, changes in conserved
land, etc. This study also recommended an integrated policy for conserving catchment areas
in BMA by developing 4 dams and 13 water ponds to serve as flood control and raw water
sources, but this policy has not yet in fact been implemented.
Land subsidence is a serious challenge. Despite per capita water consumption levels
that are lower than those of other Southeast Asian cities, increased ground water
extraction has led to the rapid decline of the local ground water table, which has been
linked to land subsidence in the Bandung basin (Gumilar et al., 2013). This comes in
addition to subsidence due to Bandung’s built environment. The long-term impact on
Bandung’s built environment may be costly, because it affects the city’s building stock
and infrastructure, such as roads and bridges, and will probably increase the risk of
flooding in certain parts of the city.
Much can still be done to address the poor and inconsistent service provision. More
attention should be paid to managing water resources at the scale of the Bandung Basin, and

the first step towards this could be a BMA-wide water assessment to establish how much
water is being extracted and from where, as well as when and by whom. This is especially
pertinent to local industry, which is not monitored, and could mitigate the negative impacts
associated with ground subsidence. Another promising option is to introduce online, real-
time water quality monitoring tools for both drinking water and wastewater treatment.
These represent a proven method for more effective water resource management. One key
benefit would be the opportunity to monitor and measure water consumption or pollution
levels, providing invaluable assistance to policy makers, while allowing the public to avoid
potentially harmful consequences. Monitoring and evaluation would also show how much
ground water is being extracted annually and could lead to more sustainable practices. It is
not certain precisely how much water industry consumes, and more effective monitoring
equipment could clarify this, to determine where it is used and by whom. High non-revenue
water (NRW) loss, coupled with declining water resources, places great strain on the water
supply. Bangkok’s real-time tap water quality project, part of the Metropole Watch
programme, is a positive example the BMA might consider (Box 2.4). Such monitoring
tools should be a part of Bandung City’s smart city strategy (see Chapter 3).
The BMA should then consider reforming the water fee structure. Because the
volume of water supplied remains in the hands of the national and provincial
governments, it is difficult for the city to meet the rising demand. However, PDAMs
retain control over water tariffs, an important policy tool. The present water tariff
structure is not financially viable, and does not allow for full-cost recovery principles,
because PDAMs do not charge customers for the volume of water they consume. Instead,
residential water tariffs are based on house size and their location. A full cost-recovery
water tariff structure would discourage excessive water consumption, conserving water
resources, while mobilising financial resources that could be invested in repair and
extending the pipeline network. Investment in this essential urban service should aim to
ensure every citizen has basic service. Indonesia’s Ministry of Public Work has strict
pricing laws limiting water tariffs to 4% of a residential area’s income, which could be
replaced by marginal use price signals, income-based fee rebates and or other
distributional mechanisms. Industrial water use should be monitored, which it is not at
present, to ensure that industry pays for the volume of water actually consumed. Of
course, rationalising water tariff structure must take into consideration socio-economic
concerns, particularly of the urban poor. Given the national subsidy system for low-
income households, a progressive water tariff structure could still be imposed, using
smart metering, although such a measure needs to be supported politically and by the
public.
Rationalising the number of local water suppliers could also be an option, as the
provision of water in Bandung is complicated by fragmented water suppliers as well as a
convoluted policy structure shared between national and sub-national governments. The
BMA could streamline them into one institutional entity for the entire BMA, with
separate regional units focusing on different geographic focal points and service
requirements.

Box 2.4. Metropole watch programme: Toward open source water quality
monitoring in Bangkok
Infrastructure improvement (construction of sewage treatment facilities) is one of the

strategies developed to tackle the issue of water quality in the Chao Phraya River and its canals.
An advanced water quality surveillance system is also being implemented. From 2002-05, the
Fugro OCEANOR-OTC Consortium developed the Metropole Watch monitoring system, which
consists of 12 automatic real-time monitoring stations based along the Chao Phraya River and
selected channels in the city of Bangkok. Water is pumped into the stations and analysed, and
the results are subsequently transmitted via phone to the main servers and database system (an
Environmental Surveillance and Information System, or ENSIS, as supplied by the COWI
consulting group and the Norwegian Institute for Water Research/Norwegian Institute for Air
Research). All stations measure the same basic parameters: water temperature, water level,
conductivity (salinity), dissolved oxygen, pH and turbidity, while other parameters such as
chemical oxygen demand, nitrates, oxidation-reduction potential, chlorophyll-A and trace metals
(zinc, cadmium, lead, thallium, copper and nickel) are measured in the selected location.
Information gathered between different monitoring points allows technicians and managers to
map water quality patterns in Bangkok and identify strategic areas where additional wastewater
treatment facilities can be constructed. This reduces uncertainty about pollutant loading and
helps identify polluters. Particular focus has been placed on flushing pollutants through the
network of channels and minimising saltwater intrusion. For an advanced monitoring system to
be efficient in the long term, attention must be paid to maintaining investments in infrastructure
and trained personnel.
The Metropole Watch programme, developed as the “real-time tap water quality monitoring
system”, is accessible at: http://twqonline.mwa.co.th/map.php?type=cl.
Source: Dutch Water Sector (n.d.), www.dutchwatersector.com/solutions/projects/187-
metropolewatch.html (accessed 22 January 2015).
Tackling water pollution

BMA is crossed by 15 rivers, with a total length of 265 kilometres. Most of them are
highly polluted, due to the lack of community awareness, waste disposal and wastewater
discharge directly to the river. Much wastewater flows untreated into local rivers and
water courses, adding to the high levels of pollution, and severely impacting residents and
the local environment. For example, Bandung City faces challenges of riverbank
management along the Cikapundung River, which crosses the city, a tributary that forms
part of the Citarum River Basin (Box 2.5). The water quality is polluted and has lost its
ecological function. The problems are caused by the lack of law enforcement on
industrial wastewater discharge to the river and solid waste disposal from settlements
along the river’s banks. Some locations are prone to inundations given the limited
capacity of the micro-drainage system.
The information collected for this case study does not permit an accurate assessment
of the extent of different types of untreated liquid wastes, their sources and destinations,
or the level of treatment provided. Bandung City acknowledged that surface water quality
is deteriorating, but could not quantify how or provide specific levels for common
household water contaminants. No programme exists to check if septic systems are
functioning in the city and surrounding areas, and they are believed to be used by fewer
than 10% of total households in the city; no mention is made of their use in rural areas in
the BMA. It should be noted that these figures do not include “household-like” liquid
wastes from commercial facilities and stores or hazardous liquid wastes from local
industry, such as the large textile industry, agricultural waste from pig and poultry farms,

as well as run-off irrigation waters containing pesticide residues. Estimated quantities of

this wastewater are not known. Factories and farms conduct “self-monitoring” spot-
checked by city environmental staff. Nonetheless, no figures are disclosed on the results
of self-monitoring It is not clear whether monitoring data must be submitted to state,
regional, or national environmental authorities for analysis.
In this regard, developing a comprehensive monitoring framework for wastewater
should be first tackled by the BMA. A real-time surface water monitoring system could
be considered, as is implemented in Bangkok, Thailand (Box 2.4). Banding city could
also use its growing ICT systems to monitor the condition of the city’s drainage system
(e.g. intakes, culverts and canals). Jakarta uses an Android-based application, “Qlue”, to
allow citizens to report infrastructure and social problems to city authorities by
submitting photos (Maulani, 2015). Citizens could identify areas where vegetation is
overgrown, garbage is present, or where damage has occurred to the drainage system,
which impedes the flow of water and prioritises their swift remediation.
The BMA should then accelerate investment in wastewater infrastructure. The
small proportion of the BMA’s black and grey wastewater that is processed demonstrates
the inadequacy of the centralised sewerage network. The existing wastewater treatment in
Bojongsoang (IPAL) has the capacity to serve a population of only 500 000, while the
BMA’s total population is 8.6 million. Both centralised and decentralised wastewater
treatment systems represent viable options for the BMA. In the near term, decentralised
wastewater treatment systems (DEWATS) operating on a neighbourhood scale may be
advantageous in Bandung. Non-centralised systems offer other benefits, such as
flexibility and adaptability, and may be better able to meet the changing needs of growing
local populations. Although the capacity of Bandung’s wastewater treatment plant may be
considered sufficient by the city government, the real problem lies with the inadequate
and poorly maintained system of sewage pipes and septic tanks. Improving oversight and
expansion of septic systems would probably be the most cost-effective measure to tackle
first, to ensure that existing infrastructure and associated investments are not under-
utilised. In the longer term, the city’s growing population will require upgrades to the
centralised system as well. Under Mayoral Decree No. 185/2015, Bandung City has
already effectively delegated some authority to co-ordinate and facilitate maintenance of
urban infrastructure to a sub-district (Kecamatan). The same approach could be extended
to decentralised wastewater treatment systems. Bandung City should consider providing
financial support to sub-districts through a Kecamatan grant, while delegating
responsibility to them as well.
In addition to investing in hard infrastructure, soft infrastructure and community
engagement may require more attention, as the general public must buy into any
reform. For example, there is some potential to reuse sewerage sludge for agricultural
purposes, although this is limited, because household waste is mixed with industrial
effluent, which results in higher concentrations of heavy metals. Moreover, a paradigm
change favouring a cyclical approach is required that would seek to reuse waste by-
products instead. Due to the lack of adequate infrastructure, informal and needs-driven
practices and strategies substitute for formal service provision. Another innovative
approach, “condominial sewerage”, engages communities and households in the
installation and maintenance of water and sanitation systems and has dramatically
lowered costs in other developing countries. Such systems, installed with local in-kind
labour as part of the counterpart’s contribution, are typically better maintained by the
residents if they have developed ownership of the system. The approach also develops

social capital among participating neighbours that can be expanded to other social
concerns, such as local transport measures, improved educational and health services and
other public services. This process has also been shown to generate greater trust and co-
operation between ordinary citizens and local government, especially among poorer,
marginalised groups who have hitherto been passive recipients of city resources, making
them active partners in decisions and actions that affect them directly. This can be a more
important achievement than any concrete structure or donor-designed activity (World
Bank/GFDRR, 2013a). Bandung could also help citizens develop ideas to improve water
and sanitation systems by forming participatory local working groups empowered by the
city and aided by local and external experts. It could also look for ways to generate seed
money for low-interest micro-financing mechanisms with low transaction costs and
lending/underwriting requirements that “recycle” loans through regular repayments of
revolving loan programmes. This sort of financial support has dynamically changed the
lives of many of the world’s poorest people living in developing countries.
Box 2.5. Revitalising the Citarum River Basin
The Citarum River is one of Java’s largest rivers, and contributes significantly to Bandung
City’s drinking water supply. This valuable water resource is one of the most polluted rivers in
the world and epitomises the BMA’s surface water challenges. Nearly 5 million people live in
the Citarum basin, and households often dump unwanted refuse into it, given the limited
municipal solid waste (MSW) services, while sewerage flows untreated into its tributaries. A
holistic approach incorporating municipal solid waste and wastewater treatment strategies must
be combined to improve this critical environmental resource. Bandung could facilitate efforts to
convert these areas into attractive and widely used public spaces to prevent them from being
used illegally to dump waste or from resettlement by squatters. Bandung is located in the
Citarum River Basin and the Citarum River tributaries passing through the BMA are heavily
polluted by human waste and by toxic waste containing lead, mercury, arsenic and other toxins.
In 2008, the Asian Development Bank approved a USD 500 million loan to clean up the
Citarum River. Work did not begin until late 2011, when a much larger (USD 4 billion) and
more comprehensive project to revitalise 180 kilometres from Mount Wayang through eight
regencies and three cities, including Bandung, was initiated. As yet, the area running through the
Bandung has not been developed into a showpiece of urban renewal efforts. It offers an
opportunity for Bandung to use it for the dual purpose of providing much needed space for urban
recreation and respite while retaining its flood-protection properties. Multipurpose public spaces,
such as below-grade parks, playing fields and underground parking lots, can also be used for
their temporary water storage capacity, which could significantly improve Bandung’s resilience
to periodic floods.
Source: Asian Development Bank (2014), “Cleaning up Indonesia's Citarum Basin”,
www.adb.org/features/cleaning-indonesias-citarum-basin, (accessed 28 June 2016).
Rationalising municipal solid waste management

While Indonesia’s comprehensive waste policies leave municipalities responsible for
designing and implementing their own policies (Box 2.6), the BMA continues to wrestle
with the challenges of managing municipal solid waste (MSW). In Bandung City, it is
managed by the city-owned municipal waste department (Perusahaan Daerah
Kebersihan). In the four other municipalities, solid waste is managed by the respective
public cleaning agency.

Three issues affect MSW management in the BMA: i) the limited proportion of
waste collected, ii) the lack of recycling, and iii) the dearth of final disposal sites. First,
it is estimated that 30-40% of the BMA’s MSW is not collected or disposed of at landfill
(Damanhuri, 2009). Waste that is not collected by the government is burned or discarded in
open spaces, streams or rivers. The burning of solid waste by communities is an ongoing
challenge, because it exacerbates air pollution, while discarded solid waste blocks drains
and has led to severe pollution of the Citarum River (Box 2.5). Secondly, in the BMA, as
little as 5% of inorganic waste is recycled (Damanhuri et al, 2009). Finally, Bandung relies
solely on landfill and one disposal site (Sarimukti) to manage its solid waste. No alternative
landfill site exists, and this is one of the city’s primary challenges. At a sub-district level in
Bandung City, MSW is first transferred to one of the municipality’s 202 temporary waste
facilities (Tarigan et al., 2016). A “collect-haul-dispose” system utilising manual labour and
non-specialised trucks irregularly collect the 1 550 tonnes of waste produced daily from
these sites (Chaerul et al., 2014). Eventually, 1 000 tonnes of MSW is transported
45 kilometres to the interim Sarimukti landfill site. This site has been repeatedly scheduled
for closure, most recently in 2015 (IGES and City of Kawasaki, 2015).
To tackle the challenges, Bandung City has set ambitious visions. Sustainable
MSWM is a central pillar of Bandung City’s Low-Carbon City Plan. The plan includes
a target to reduce the proportion of waste going to landfill from 69% to 25% between
2013 and 2018, and proposes two key measures to achieve this goal: promotion of 3 Rs –
reduce, reuse and recycle – and waste-to-energy, which are informed by Bandung City’s
medium-term development plan (Bandung City, 2014) (Table 2.2).
Table 2.2. Bandung City Medium-Term Plan 2014-18
Index 2014 target (%) 2018 target (%)

Percentage of waste treated by the municipal government 77 90
Disposal by landfill 69 25
Waste reduction 7 65
Waste reduction by 3 R treatment 7 30
Waste reduction by waste power generation 1 35
Source: IGES and City of Kawasaki (2015), Feasibility Study on FY2014 Large-Scale JCM Project for
Realizing Low-Carbon Development in Asia – Developing a Low-Carbon Society Under Collaboration
between Bandung City and Kawasaki City, www.env.go.jp/earth/coop/lowcarbon-
asia/english/project/data/EN_IDN_2014_03.pdfb.

Box 2.6. Solid waste management strategies in Indonesia
After the 2005 Leuwigajah landfill disaster, which killed 143 people, the government of
Indonesia recognised the urgency of the situation, passing comprehensive waste management
legislation (Munawar and Fellner, 2013).
The Solid Waste Management Act, 18/2008 has transformed municipal solid waste (MSW
management across the nation. This comprehensive policy established a legal framework for the
effective governance and management of solid waste in Indonesia. It defines MSW as the
residues of daily human activities in reference to i) domestic waste, ii) domestic waste
equivalents and iii) other specific non-hazardous wastes. The act attempts to encourage a
paradigm shift perceiving the waste stream as a resource, while resulting in an annual 7%
reduction in urban waste (Kasih, 2013a). It also prohibits open dumping and unregulated burning
of waste. Prior to its implementation, Indonesia had no central regulation of municipal solid
waste, with a fragmented system overseen by local governments. This led to wide variation in
MSW management between regions, and sub-optimal performance (Munawar and Fellner,
2013). A 2012 presidential decree focusing on Domestic Solid Waste Management and Solid
Waste set up new regulations to introduce sanitary landfill practices and improve management of
landfill sites.
The Solid Waste Management Act divides municipal solid waste management between local
and central government. The central government is responsible for Indonesia’s national waste
strategy and policy, encouraging co-operation between local governments (Kasih, 2013a). On
the other hand, municipal and city governments are free to establish their own local waste
policies in accordance with the national policy framework, as well as implementation and
ongoing management. They are also charged with the monitoring and evaluation of waste
management systems. In addition, the act emphasised the importance of environmentally sound
waste practices and ordered the closure of all non-compliant landfill sites operating as open
dumps within five years.
The act is guided by two underlying principles that assign responsibility to individual
sources, such as households and industry, to reduce the waste generation burden on the system
as a whole: i) extended producer responsibility (ERP) is “a policy approach under which
producers are given a significant responsibility – financial and/or physical – for the treatment or
disposal of post-consumer products” (OECD, 2001); ii) the 3 Rs approach – reduce, reuse and
recycle – is practiced across all waste management chains.
The complementary Environmental Protection and Management Act 32/2009 regulates
industrial and other hazardous wastes to protect human health and the environment
(Kasih, 2013a). The act defines hazardous waste management as an activity covering the storage,
collection, transport, utilisation and/or treatment of hazardous waste. It is based on a polluter-pay
principle and bans the import of hazardous waste into Indonesian territories.
Source: Munawar, E. and J. Fellner (2013), “Injury time for Indonesia’s landfills”, https://waste-
management-world.com/a/injury-time-for-indonesian-landfills (accessed 15 February 2016); Kasih, T.
(2013a), “E-waste management in Indonesia (National Regulation Draft)”,
www.epa.gov/sites/production/files/2014-05/documents/indonesia.pdf; OECD (2001), Extended Producer
Responsibility, A Guidance Manual for Governments, http://dx.doi.org/10.1787/9789264189867-en.
Revising pricing structure to increase the MSW service coverage

A primary aim for the BMA should be to increase MSW collection to 100%, but
financial constraints limit effective MSW management in the BMA (IGES and City of
Kawasaki, 2015). Limited local government budgets, in combination with waste
collection fees that are too low to cover actual disposal costs, mean that MSW policies
have not been fully implemented. The BMA’s local governments transport the MSW

from transfer stations to landfill sites and pay a tipping fee to the provincial government.
Waste collection fees to ensure solid waste is moved to transfer stations offset some of
these costs, but an average collection fee covers only an estimated 28% of the overall cost
of waste management (Munawar and Fellner, 2013). Waste collection fees are determined
not by the quantity of waste produced but other factors, such as housing type and
location, or water and electricity consumption. Local governments can change the fee
structure to lower charges if households reduce waste or increase levies for those who
produce more, although such a pricing mechanism is not yet introduced. It is unlikely that
any reforms will be successful unless these financial constraints are rectified and fees are
raised in line with full-cost recovery principles.
Local governments in the BMA should consider increasing the collection fee to
reflect the true cost of providing this critical urban service and to reinvest the
increased revenue in improving the collection service. An option is to institute higher
marginal costs as more rubbish is generated. However, if prices were to increase, those
who would otherwise do so might be discouraged from having their waste transported to
the transfer station, simply dumping it and contributing to the problem the government is
seeking to curb. In view of the limited proportion of waste collected, any decision to
increase the fee must be considered carefully and comprehensively. Creating the enabling
conditions to discourage waste generation by providing households with recycling bins,
as well as regulating open dumping and burning, should be explored.
It is also crucial to improve the efficiency of the collection services. The BMA’s five
local governments, with the support of West Java Province, could consider integrating
the MSW management across the contiguous metropolitan area. Options include
introducing a joint skill training programme for workers, sharing operational resource
including workers and garbage trucks, and organise campaigns and event jointly to raise
awareness of BMA citizens and promote waste separation.
Promoting source separation and formalise the informal collection to accelerate

the three Rs
Composition of landfilled waste in the BMA, especially high proportion of organic
matter and green wastes demonstrates high potential of recycling (Figure 2.2). Bandung’s
Low Carbon City Plan incorporates the 3 Rs – reduce, reuse and recycle – in an effort to
increase recycling from 7% in 2013 to 30% in 2018. In order to achieve the goal, the first
step must be to institute much better source separation at a household and business level.
In the BMA, as in many Southeast Asian cities, most different types of waste are not
effectively separated at the source, at the time of collection, so each type of waste cannot
be properly recycled, composted or incinerated. A further problem is that, even if wastes
are separated at the household level, they are mixed again at transfer or landfill sites
(OECD, 2015). Campaigns by the BMA to raise citizen awareness of the need for
municipal solid waste separation should be accelerated and expanded to all parts of the
metropolitan area. The BMA could also consider requiring businesses, hotels, restaurants
and bars, and large apartment complexes to recycle. A mandatory recycling system has
been introduced in many cities in the state of California (United States). The city of San
Carlos, for example, adopted a mandatory commercial recycling ordinance in 2010,
which became operational within a year. The ordinance was phased in over two years and
includes all types of recyclable materials: special wastes, food waste and green waste. It
was adopted after extensive consultation with the business community (which supported

the ordinance) and includes an extensive outreach programme to educate businesses
(OECD, 2015).
Informal collectors make a critical contribution to the waste stream, especially in
reusing and recycling. The collection of household waste and recycling is organised by
local communities and undertaken primarily by informal collectors and waste pickers.
The Ministry of Co-operative, Small and Medium Enterprises (MoCSM) estimated
Indonesia had 1.2 million waste pickers in 2008 (Munawar and Fellner, 2013). The
MoCSM also calculated that the annual financial value of recycled materials collected
informally in Jakarta at more than USD 750 million, a figure almost equivalent to
Jakarta’s local government budget (Munawar and Fellner, 2013). Little of this financial
windfall lands in the hands of informal collectors or pickers, who work in unhealthy and
dangerous conditions. Much could be done to improve their working conditions. Despite
their vital contribution to reducing the waste stream by recycling, the legal status of this
work is uncertain (Chaerul et al., 2014).
Formalisation of the informal sector in the collection and recycling of municipal
solid waste could be considered. This could be undertaken by providing financial
incentives, training and providing targeted investment to new start-ups in the solid waste
sector. Bandung City’s new recycling programme also aims to co-operate with the city’s
active waste pickers. The further restructuring of the informal sector could also help to
address some of these technical and financial constraints. Such a plan would not only
guarantee income streams to low-skilled urban migrants, but supply industry and
manufacturers with recycled materials and limit the quantity of waste produced and
disposed. Waste Bank (Bank Sampah) is organised at a local community level and has
been introduced in many Indonesian cities, including Bandung. The Waste Banks aim to
collect non-organic waste (plastic, bottles, etc.) for recycling and organic waste to
compost from households. In return, the waste bank converts residents’ waste deposits
into cash, which is transferred to savings accounts (Salim, 2013). Waste Ventures in
India is one of several models that could be evaluated to develop a framework suited to
Bandung’s specific MSW needs and sociocultural context (Box 2.7).
Promoting waste-to-energy technology to reduce over-reliance on landfills

Bandung’s landfill sites are managed by West Java Province, which is currently
closing the only operating dumpsite (Sarimukti), while preparing two new sites (Nambo and
Legok Nangka). The Indonesian government provides capital investment only in landfill
sites, while operational and maintenance costs are paid for by the provincial government.
The increasing volume of MSW, stringent national budget, neighbourhoods’ resistance and
poor co-ordination across levels of government have made a new landfill project extremely
difficult at any location within the BMA. For example, due to the urgent need for additional
spaces for landfill, Bandung City has tried to rent vacant lands in the neighbouring
municipalities, but the negotiations were evidently not easy. Consequently, Bandung City
has faced huge challenges in dealing with its MSW (Tarigan et al., 2016).
Bandung City has recently drawn up an ambitious plan to introduce bio-digesters to
generate gas and fertiliser supported by the city of Kawasaki, Japan, and reduce waste
going to landfill. The high proportion of organic matter and wet waste in the BMA’s
waste stream (Figure 2.2) makes it worthwhile to use this technology instead of waste-to-
energy incineration plants. Source separation is crucial to make this technology viable,
and the city needs to inform the public of the benefits to be gained from recycling and
separating garbage at home or in the workplace. Bandung’s urban agriculture initiatives

will also have their own set of green co-benefits. Because such decision on the selection
of MSW technologies could have a large-scale impact on the volume of wastes to be
landfilled, strong policy co-ordination is needed across the national, provincial and local
governments in the BMA. The proposed metropolitan governing mechanism will also
play a key role in this area (Chapter 4).
Figure 2.2. Composition of landfilled waste
Textile Other
3% 12%
Rubber/leather Organic (kitchen refuse,
2% meat, fruit and vegetable)
Glass 20%
4%
Metal
4%
Plastic
12% Leaves/garden
32%
Paper
11%
Box 2.7. Formalising the informal: Examining opportunities for municipal solid waste
reduction
In India, Waste Ventures provides door-to-door waste collection services and directly employs
some of the poorest and most unskilled workers, whose livelihoods are put at risk by large-scale waste
management operations that do not recycle sufficient waste or provide effective services. To date, the
company has recruited 53 “pickers”, who traditionally collect rubbish from roadsides and dump yards
to earn their living. Providing employment and training, Waste Ventures equips them with skills and
protective clothing so they can collect waste directly from the local households in the communities in
which they work. The training gives them the skills to segregate waste on the spot into recyclable,
organic and inert portions. Generally, 80% of the waste is processed for recycling, and by selling the
by-products, additional revenue is generated from which Waste Ventures is able to pay the pickers a
salary about twice that they would normally earn.
Waste Ventures also collaborates with households that are both customers and direct community
stakeholders. Because the value of waste is higher the earlier it is segregated, Waste Ventures
communicates to its customers on a regular basis the benefits of segregating waste before collection.
The company distributes posters that illustrate best practice segregation methods, to raise awareness
within the community. It also encourages late-adopters to take up its services, at educational events
emphasising the environmental and public health risks of dumping or burning waste illegally. Both
strategies directly target local residents in the communities in which the company works. Strategic
preparation before services commence engages local government, in particular the municipal chairman,
and ensures ongoing support. These public education campaigns can be measured in customer
satisfaction, new skills and higher wages for the waste pickers and expansion of the waste collection
services. Reducing urban pollution, its environmental impact and the risk this poses to public health
contributes to a cleaner city.
Source: DECD (2014), “Skills Development by Green and Inclusive SMEs in India: Entrepreneurs’ Approaches”,
www.enterprise-development.org/wp-content/uploads/DCED_GGWG_Skills_India_8_October_2014.pdf?id=2504
(accessed 12 October, 2014).

Leveraging investment in water and solid waste infrastructure to enhance urban
resilience
Investment in the provision and management of essential urban services should be
leveraged to build a more inclusive and resilient city. The BMA still faces annual
flooding in the southern part of Bandung Regency and flash floods during heavy rainfall
in several locations, such as Bandung Regency and Bandung City. Solid waste and
wastewater management should be co-ordinated to effectively address the problem of
flooding. Maintaining the BMA’s drainage systems in flood prone areas in the BMA
would be particularly important to minimise the risk of flooding. Several policies for
rainwater harvesting have sought to increase the amount of rainwater managed on-site
(see Section 2.4). Bandung is also located in an active earthquake zone that could destroy
or seriously damage large sections of the sewage network or wastewater treatment plant.
It would thus be advisable for the city to move toward a more distributed system to
minimise the potential service disruption and serious repercussions on public health.
Although less economically efficient than a unitary treatment plant system, a fail-safe
approach would reduce the cost of repairs to get the system running again after a disaster
(e.g. through flooding).
2.3. Investing in renewable energy and increasing energy efficiency
Investing in renewable energy in the BMA

As the energy sector is largely centrally managed by Indonesia’s Ministry of Energy
and Mineral Resources (MEMR), municipal governments in Indonesia have been little
preoccupied with energy policies. Given the pressing need for increasing the energy
supply, exploring renewable energy (RE) options is timely and relevant in promoting
urban green growth. RE strategies can bring many other direct benefits to the city, such as
more secured energy provision, reduced air pollution and reduced municipal solid waste
going to landfills.
This is a timely moment for the BMA to explore RE. At the national level, the
Indonesian government has demonstrated a commitment to promote the use of clean and
RE. Indonesia’s medium-term development plan 2015-2019 aims to increase the share of
new and et al. sources and views this goal as one of its key development objectives. The
National Energy Policy, as stated in the 2014 regulation No. 79, sets a target for new and
RE to contribute 23% to the national energy primary mix in 2025 (Tharakan, 2015). This
means that the installed RE capacity would need to increase by an ambitious 8.6 GW to
46 GW by 2025 to meet the target. The MEMR is managing a number of programmes to
accelerate clean and RE development, although developing a RE sector is currently
targeted especially for “under-developed, remote and rural areas” (London School of
Economics, 2016b):
• At least 3.7 GW of the additional 35 GW the Indonesian government aims to
bring online by 2019 will be generated using renewable sources, mainly
hydropower (2.4 GW) and geothermal energy (1.2 GW). Nonetheless, the
majority of this additional capacity will be sourced from coal-fired power plants
(20 GW) and gas-fired projects (13 GW) (Enerdata, 2015).
• Enhancing the development of geothermal, bioenergy (municipal solid waste,
biomass and biogas), hydro, wind- and solar-based power plants by putting feed-
in tariffs (FiT) in place.

• Setting up a series of feed-in tariffs (FiT) to accelerate the development of RE.

• Providing an Energy Security Fund to accelerate the development and use of
RE. The fund was developed throughout 2015, primarily as a means to support
oil, but has also undertaken a development project related to RE sources. The
legal framework for the fund was established in Law No. 30 of 2007 on Energy
which stipulates that “development and utilisation of research output on new and
RE shall be financed from state revenue from non-RE”.
• Enhancing international co-operation in the development of RE technologies and
energy conservation.
• Intensifying an energy-saving campaign as a massive national movement.
Although it does not appear that sub-national governments in Indonesia are taking an
active role in achieving the national target, Bandung could take a leading role by
introducing RE in its city operations. Solar energy presents a highly promising and
practical option. The city government could support expansion of the solar industry by
creating local demand. It could provide financing for solar collectors (for electricity and
hot water) on large-scale residential and commercial buildings, for example. Greater use
of solar energy for locally procured public goods, such as street lights, advertising
billboards and lighting for public buildings, could also be promoted. Bandung has made
substantial investments in high-tech industry, including solar panel manufacturing, which
would provide the basis to develop these RE industries. The presence of the aerospace
industry could also help the development of other renewable industries related to wind
technology. Currently, there is no feed-in-tariff mechanism on wind energy, which
creates relatively unfavourable market conditions for wind energy. The central
government should co-ordinate with the private sector and consider introducing a feed-in-
tariff mechanism for wind energy, so that such options become more competitive.
Another promising option for Bandung is waste-to-energy. Planning is under way to
build a waste-to-energy incinerator in the BMA after a 2016 Presidential Decree
(No. 18) which seeks to accelerate the development of a waste-based electricity power
plant in Bandung, as well as Jakarta, Surabaya, Tangerang, Semarang, Surakarta and
Makassar, to curtail the amount of waste sent to landfill (Wijaya, 2016). However,
incinerators have been strongly resisted by the public in Bandung (Dipa, 2013). In
addition, the city’s waste contains a high proportion of organic matter and wet waste
(Figure 2.2), in contrast to many OECD cities, where incinerator technology is used.
Recently, consideration has been given to the introduction of pilot bio-digesters, as noted
in the previous section. A thorough investigation of policy options, in particular in
partnership with the Bandung Institute of Technology and other universities, should be
explored to develop locally suitable technological solutions. Strong co-ordination among
central, provincial and municipal governments, as well as engaging citizens and
community groups in the discussion, would benefit Bandung in the long run.
Accelerating cities’ action to curb increasing energy consumption

Curbing the increasing energy consumption is an urgent policy challenge for
Indonesia, and cities have an important role to play in this. The National Energy General
Plan (RUEN), promulgated in 2014, requests the formulation of energy plans at
provincial and municipal levels of government in the future. The draft National Energy
Conservation Master Plan (RIKEN) envisages a decline in energy intensity (the amount

of energy required to produce one unit of GDP) of 1% per annum. To put this in historical
perspective, in the period 2000-09, energy intensity fell by more than 1% each year, in
both primary and final energy consumption. In 2010-11, however, the reduction in energy
intensity was closer to 0.9% on both measures. Meeting the 1% target would require
reduction in energy consumption of around 19.6% compared to business-as-usual
scenario in 2025, and concerted efforts in different sectors are called for (Table 2.3).
Cities have a number of tools at their disposal to make their economic activities more
energy efficient and contribute to national targets. As part of Bandung City’s low-carbon
society initiative, the administration has targeted a 20% reduction in energy use. The city
has also taken the lead in energy conservation activities targeting government buildings,
with as many as 30 different initiatives (IGES and City of Kawasaki, 2015). To scale up
energy-efficiency measures, the city could use new urban development such as
Teknopolis as a pilot project. Ambitious targets applying high standards of energy
efficiency in buildings could be experimented with to guide private developers.
Stockholm’s experience with Hammarby Sjostad and Royal Seaport is one such example
(OECD, 2013).
Cities can also collaborate with the private sector to reduce energy consumption from
electric appliances. Bandung City has already mounted campaigns to encourage
businesses and citizens to switch from incandescent lightbulbs to compact fluorescent
lightbulbs (CFLs) or light-emitting diodes (LEDs). Subsidised or free CFLs and LEDs
could be given away at public events to raise awareness, and businesses could support
such campaigns, as they would benefit from increased sales. By collaborating with the
private sector, these campaigns can easily be replicated by other cities in the BMA, not
necessarily with formal co-ordination among the local governments. Cities could also co-
ordinate with the private sector and launch regular information and educational
campaigns to explain advantages of buying energy-efficient equipment, particularly air-
conditioning, as well as household appliances, especially refrigerators and water heaters,
which consume electricity continuously. This approach could also be combined with a
labelling programme indicating the efficiency rating of a product, and the energy and
financial savings to be gained annually. Neighbouring countries, such as Thailand,
already have such programmes (OECD, 2015).
Curbing energy consumption from industry is equally important as it accounts for
40% of total energy consumption in Indonesia (Table 2.3), and cities also have many
roles to play. City of Hai Phong, Viet Nam, has formulated Hai Phong Green Growth
Strategy for Industry in 2020 (with the target for 2030), which is a vision for modernising
industry and encourages energy-effective production. Based on this plan, the city will
help the 120 casting companies that use coal to transform their manufacturing process.
The city is already supporting firms in energy auditing and has provided consulting
solutions to save energy. According to the Energy Conservation and Cleaner Production
Centre of Hai Phong City (ECCH), the energy audit activities have saved a total of
50.3 million kWh per year, equivalent in monetary terms to more than USD 3 million and
a reduction in carbon emissions of 42 000 tonnes per year (ECCH, 2014). Bandung City
and other local governments in the BMA could send experts who provide technical advice
to small- and medium-sized manufacturing firms and finance a part of the costs of high-
energy-efficiency production facilities. Energy-efficient production systems can cut the
cost per unit of production and increase price competitiveness, in addition to consuming
less energy. Continuous investment to improve productivity and energy efficiency will
help industries become more competitive and environmentally friendly
(OECD, forthcoming).

Table 2.3. Energy savings target in the Master Plan of National Energy Conservation
Energy consumption by sector, 2012 Potential for energy Target for potential energy
Sector
(million BOE) savings (%) savings, 2025 (%)
Industry 305 (39.7%) 10-30 17
Transport 311 (40.4%) 15-35 20
Household 92 (12%) 15-30 15
Commercial 34 (4.4%) 10-30 15
Others (farming, construction and mining) 26 (3.4%) 25 -
Source: Ministry of Energy and Mineral Resources (2012), Master Plan of National Energy Conservation (RIKEN),
Government of Indonesia, Jakarta. BOE stands for barrel of oil equivalent.
2.4. Promoting green buildings and combatting urban slums
The housing and building sectors present opportunities for green growth in
Bandung, as many new housing and commercial developments will take place in the
next decades. Given the share of energy consumption in the household and commercial
sectors (Table 2.3), reducing energy consumption in buildings should be prioritised.
Building policies are particularly relevant for local governments in most of Southeast
Asian cities, as they typically have authority to control development by through
building permits. In addition to reducing energy consumption, building policies could
offer many other benefits to urban environment including reduced air pollution (due to
improved heating systems), alleviating heat island effects, etc. Improving the quality of
existing housing stocks is equally important for urban quality of life, given the fact that
urban slums present an urgent challenge in Bandung and many other Southeast Asian
cities.
Ensuring effective implementation of green building requirements

Bandung City has recently announced that a green building certificate will be a
requirement, not simply a recommendation, as it was previously, for obtaining a city
building permit (Izin Mendirikan Bangunan/IMB). This is intended to promote energy-
efficiency savings and eco-friendly building in the city. A green building certificate will
be issued for buildings that meet Bandung City’s criteria as part of the green building
regulations. It will incorporate all building types, such as residential, commercial,
socio-cultural and religious buildings. However, during the first stage of
implementation, the regulation will only be applied to new buildings with a floor area
of more than 5 000 square metres and to the extension of existing buildings with an
additional minimum floor area of 5 000 square metres. Smaller buildings will be
included in the next phase of the programme. The green building requirements include
electricity energy saving, using materials that reduce energy use, prioritising local
resources, reducing the carbon footprint and planting vegetation for a greener city. The
aim is to incorporate green architectural design principles into new developments. The
city will not issue permits to development projects if they do not meet these green
certification requirements.
While the policy holds promise, it has yet to be put into action, and progress must
be made on the second phase for smaller buildings. To ensure effective implementation,
it is crucial for Bandung City to ensure capacity for enforcement including on-site
inspections. In addition, a number of supporting mechanisms for developers and

building owners could be considered. For example, the city can co-operate with the
private sector and provide training programmes on the green building requirements.
The city can also provide support to local Energy Service Companies (ESCOs), which
could allow building owners to improve building energy efficiency without upfront
investment or special loans. This could create business opportunities for green services.
The city could also consider financial incentives for developers who introduce RE and
other environmental friendly building design. Finally, the policy should be scaled up
beyond the municipal border. Bandung City and other local governments in the BMA
should co-operate to extend the policy benefit to the entire BMA.
Managing rainwater on-site to make Bandung more resilient to floods

In 2014, Bandung received more than 2.3 metres of rainfall and averaged 19 rainy
days per month. The area now at risk of flooding increased from 8 square kilometres in
1990 to 15 square kilometres in 2010 (Chapter 1), partly due to increasing impermeable
built-up areas. In this regard, increasing ground water absorption through retention
ponds and permeable surfaces in urban development should be considered to decrease
flood risk and increase aquifer recharge, potentially allowing the city to meet its long-
term water needs.
Rainwater harvesting is a viable option for remediating the limited drainage
infrastructure put in place in Bandung. There are already several policies pertaining to
rainwater harvesting that have sought to increase the amount of rainwater managed on-
site, such as i) government regulation No. 33/2011 on national water resource
management; ii) Ministry of Environment Decree No. 12/2009 on the use of rainwater;
iii) Ministry of Public Works and Housing Decree No. 11/2014 on rainwater
management in building and its land plot. In Bandung City, households are required to
retain rainwater on-site, and in commercial buildings, this water is mandated to be used
in toilets and gardens. Such initiative is complementary with water supply policies, as it
alleviates the demand for piped water. The city should work together with the
surrounding municipalities and encourage them to introduce similar initiatives.
Bandung City’s effort to increase water capture and storage and make cities more flood-
resilient can only be effective if introduced across the BMA.
Upgrading urban slums and integrating them into the existing urban fabric
Although Indonesia has been combatting urban slums since its Kampung
Improvement Program in the 1970s, the challenge persists and remains urgent. Current
best practices advocated globally seek to enhance infrastructure in place where
possible, since it is both economically unrealistic and socially destabilising to move
communities to other parts of the city (Cities Alliance, 2016). It requires a
comprehensive approach, especially co-ordinated with its urban resilience strategy,
especially since many urban slums are in flood-prone areas.
The government of Indonesia aims to eradicate urban slums as part of the national
medium-term development plan by 2019. It is anticipated this will be implemented
through several national service delivery platforms. Ministry of National Development
Planning (Bappenas, 2013) has launched a collaborative platform to revitalise slum
settlements that clearly outlines the need for sectoral integration and central-local
responsibility. Several slum alleviation programmes are being implemented, including a
neighbourhood upgrading and shelter project (NUSP-2); a collaborative program for
slum alleviation and self-help housing assistance.

As noted in Chapter 1, informal settlements in Bandung have increased, with at

least 26 000 dwelling units and 120 000 inhabitants. They are dispersed in various slum
spots within the city. More than 50% of the districts in Bandung City still contain slum
areas, concentrated into densely populated neighbourhoods. The dwellings are mostly
semi-permanent, improper and vulnerable to floods, because some locations are along
the Cikapundung Riverbank that flows through the city (Tarigan et al., 2016).
Bandung City has made continuous effort in upgrading informal settlements and
integrating them into the existing urban fabric. In 2014, the Ministry of Public Works
and Housing selected Bandung for an Adiupaya Puritama award recognising its
innovative programme to revitalise urban slum areas. For example, neighborhood
development in Tamansari along riverside of Cikapundung is an example of sustainable
residential development creating public space, providing public housing, and improving
the riverbank and drainage systems. At least three slum revitalisation programmes are
underway including: i) short-term provision of infrastructure, basic services and utilities
for exceptionally dense populations at Babakan Ciamis; ii) medium-term slum
improvement along the riverbanks at Babakan Surabaya; iii) long-term public
apartment housing and area revitalisation without eviction at the Babakan Siliwangi,
Sadang Serang and Paldam area in Jakarta Street. Despite the abovementioned efforts,
little reduction to the slum areas has been detected in Bandung. The main reason behind
this situation is the migration flow of unemployed individuals to Bandung. Individuals
who have left slum areas are often replaced by newcomers from the neighbouring
municipalities searching for better opportunities in the city, leaving the number of slum
residents and areas unchanged (Tarigan et al., 2016). This demonstrates the strong need
for a co-ordinated policy approach among the five local governments in the BMA.

Main policy recommendations
• Develop a metropolitan spatial land-use plan to guide urban development and a

transport policy to co-ordinate urban mobility across the BMA. Conduct a BMA
vulnerability and risk assessment and asset inventory in tandem with land use planning
in the BMA, to enhance urban resilience.
• Encourage public-private partnerships and private sector finance to leverage public
funds and accelerate transport infrastructure development.
• Incorporate the BMA’s informal transport infrastructure (minibuses, motorcycle taxis,
non-motorised pedicabs) as part of a feeder system. Increase their reliability and safety.
• Repair the installed monitoring stations in Bandung City and maintain them regularly.
Provide more incentives to low-emission vehicles by expanding priority parking to
private parking facilities. Extend Bandung’s Blue Skies programme further in the
BMA. Make all air pollution data publicly available in real time, using ICT.
• Consider including PM2.5 as one of the continuously monitored pollutants in the
NAAQS. Set more aggressive ambient air quality standards than NAAQS for the BMA.
• Undertake BMA-wide water assessment to establish how much water is being extracted
and from where, as well as when and by whom.
• Revise the water and solid waste tariff structures to reflect the true costs and reinvest the
increased revenue in improving the service coverage. Introduce higher fees for
customers who consume more water and generate more waste.
• Introduce online, real-time water-quality monitoring tools.
• Enhance source separation by formalising the work of the informal sector and
introducing better working conditions to promote a decent workplace.
• Provide financing for solar collectors (for electricity and hot water) on large-scale
residential and commercial buildings. Promote greater use of solar energy for locally
procured public goods, such as street lights, advertising billboards and lighting for
public buildings.
• Consider introducing a feed-in-tariff mechanism for wind energy.
• Use the national government’s Energy Resilience Fund to finance the BMA’s local
energy policy study, when it becomes available.
• Incorporate principles of good architectural design to boost energy efficiency in the built
environment.

Notes
1. Bandung Berkebun is a programme under Indonesia Berkebun. Started in 2011,

Indonesia Berkebun has spread to 30 cities in Indonesia. This programme is run by
communities in each city without government intervention.
2. Government Regulation No 41/1999 on Air Pollution Control stipulates general rules
on ambient air quality, specifying standards for pollutants including suspended
particulate matter (PM), Carbon Monoxide (CO), nitrogen oxides (NOx), Sulphur
dioxide (SO2) among others.
3. West Java Province has set its air quality standard parameters (Peraturan Gubernur no
78 tahun 2013 tentang Petunjuk Pelaksanaan PERDA no 11/2006 tentang
Pengendalian Pencemaran Udara), although they are at par with national standards
(Government Regulation No 41/1999 on Air Pollution Control)
4. PDAM Tirtawening (Kota Bandung); PDAM Tirta Raharja (Kota Cimahi, Kabupaten
Bandung, Kabupaten Bandung Barat) and PDAM Tirta Medal (Kabupaten
Sumedang). In addition, PT. Tirta Gemah Ripah supplies untreated water to the
PDAMs.

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3. THE SMART CITY VISION AND GREEN GROWTH IN BANDUNG – 81
Chapter 3
The smart city vision and green growth in Bandung
Chapter 3 examines opportunities offered by smart city tools, and in particular digital
technologies, to encourage green growth in the Bandung Metropolitan Area (BMA).
“Smart City Bandung” is one of the driving visions developed by the City of Bandung to
enhance the attractiveness and performance of the city. In this context, it is worth
exploring how existing smart city projects can support BMA’s green growth and how they
can be enhanced. This chapter is structured into the following five sections:
1) tailoring Bandung’s smart city vision to green growth objectives
2) enhancing data and knowledge on green growth Bandung
3) enhancing transport and energy infrastructure’s performance
4) making Bandung resilient to natural disaster risk
5) ensuring inclusive development.
This chapter benefited from discussions at the third OECD Knowledge-Sharing
Workshop on Urban Green Growth in Dynamic Asia, held in Bandung on 7-8 May 2015
and supported by the OECD Knowledge Sharing Alliance.

82 – 3. THE SMART CITY VISION AND GREEN GROWTH IN BANDUNG
Key findings
• A smart city uses Information and Communication Technologies (ICT) and digital
technologies to support real-time data production, automated utility systems and digital
communication tools, with the objective of making critical urban infrastructure
components and services more efficient and interconnected. It is expected that the
global market for smart urban services will reach USD 400 billion per year in 2020, and
many cities have already adopted these new opportunities. Bandung is aiming to be a
smart city, and the first digital technologies acquired or developed show the potential of
the city to become a smart city model in the developing world. The city should continue
its efforts and tailor its smart city vision and projects to urban green growth
performance. Transport, energy, water, flood resilience and solid waste systems all offer
opportunities.
• One of the most important applications of smart city tools is the production, collection
and diffusion of urban data and knowledge. The Bandung Command Centre, the
flagship smart city project, aims to collect data on the traffic and traffic violations,
emergency needs and location of public utility vehicles. Citizens’ input can be collected
on a range of issues through social media, helping to identify problems more rapidly.
Data collection through digital technology should, however, be undertaken within a
more comprehensive framework tailored to green growth objectives. This is all the more
important since the city has insufficient data to assess policy needs and track progress
towards green growth.
• Smart city initiatives in Bandung have mainly targeted the transport sector. A
third-generation bicycle-sharing programme, an electronic parking system, smart cards
and traffic visualisation are being developed, although they are still in the pilot or design
stage. Digital technologies could also be used to analyse traffic congestion and
commuting flows. The energy sector is not currently included in the smart city
vision, although it is one of the areas worldwide where digital technologies have been
most developed. They can be particularly useful for reducing energy consumption and
helping deploy renewable energy facilities.
• Making Bandung resilient to disaster risk, and in particular the frequent floods, is
another potential application for smart city tools. While the command centre will be
useful for co-ordinating emergency response teams in case of disaster, a more
comprehensive smart resilient strategy is needed. Digital technologies can help make
urban planning more resilient through flood simulation tools, to co-ordinate the response
of infrastructure and to reach out to local communities and the private sector.
• Finally, social inclusion should also be a goal of smart city tools. Bandung has more
than 120 000 slum dwellers, and 8% of its population lives below the poverty line. The
smart city vision aims to improve education, health care, security, community outreach,
Internet literacy and citizen engagement. It is not clear what role digital technologies
will actually play and how they will target the urban poor, but it is critical not to leave
low-income communities out of smart city projects. The local government should
develop clear strategies for this, and ensure the input collection system from citizens is
also used by the urban poor. This strategy could be coupled with the urban slum
revitalisation programme started in 2014. Using smart technologies in consciousness-
raising and education programmes can also help ensure that Bandung’s smart city vision
is inclusive.

3.1. Tailoring Bandung’s smart city vision to green growth objectives
The expansion of ICT and digital technologies market for smart cities
“Smart City Bandung” is a new vision formulated by Bandung City Mayor Ridwan
Kamil, based on growing worldwide interest and investment in this field. The smart city
concept directly grew out of the sustainable cities movement and is widely considered to
have the potential to transform cities. The label has often been used in inconsistent ways
and may be confused with such concepts as the “digital city”, “intelligent city” or
“knowledge-based city”, resulting in some confusion about its supposed added value. The
common understanding of a smart city is a city monitored through information and
communication technology (ICT) and digital technologies, the idea being that enhanced
real-time data, automated utility systems and digital communication tools will increase
the cost-effective provision of urban services (e.g. transport, energy, water) and
governance. This report will consider the use of ICT and digital technologies as the main
characteristic of a smart city. While the concept of the smart city is sometimes used to
describe aspects such as innovation, creativity, entrepreneurship and good governance,
these do not bring specific added value if they are not considered as technology, and are
also less concrete in terms of investment and economic markets.
ICT and digital technologies supporting city management are at the heart of a global
market in rapid expansion. The global market for smart urban (e.g. technology-supported)
services is expected to reach an annual USD 400 billion in 2020, including
USD 220 billion for the smart energy market alone, USD 156 billion for the smart
transport market and USD 22 billion for the smart water market (Department of Business,
Innovation and Skills [BIS], 2013). A few years ago, this market was almost non-existent.
Another study estimates the revenues of the smart waste market at around USD 42 billion
from 2014 to 2023.1 These figures do not include other non-infrastructural use of smart
city tools such as mobile applications, which are not necessarily urban-specific, and
whose potential is likely to be higher than these figures suggest. The smart city market is
mainly driven by global utility firms such as IBM, Cisco, Intel, Microsoft, Siemens and
more recently Google, which increasingly partner with local governments to propose ICT
and digital technology-based smart city services. At the same time, many cities are
branding themselves as “smart cities” or willing to become worldwide leaders in smart
city tool applications for urban management, such as Barcelona, Amsterdam and
Singapore, which recently launched an ambitious smart city plan (“Smart Nation
Singapore”). An increasing number of smart city events and competitions presenting
awards to cities, such as Barcelona’s Smart City Expo World Congress, are now held
each year.
Bandung’s smart city vision

Bandung’s smart city vision was initially formulated within the Smart City Grand
Design strategic document and was revised and incorporated into the 2013-2018 ICT
Master Plan. The ICT Master Plan places great emphasis on e-government (including
digital administration and public participation) and enhancing basic digital infrastructure
(e.g. Internet connectivity and quality of servers) (City of Bandung, 2013). Bandung
City’s smart city approach is defined as: “the use of ICT to connect, monitor efficiently
and effectively and control a variety of resources that exist within the city in order to
maximise service to the citizens” (City of Bandung, 2015a). “Teknopolis”, a new city
district planned to attract technology industries and businesses, is an important element of

the smart city vision, although it is not explicitly specified in the ICT Master Plan (City of
Bandung, 2015b). The Bandung Command Centre is the flagship project for achieving
the smart city vision (Box 3.1). Initiated in early 2015, it is comparable to other existing
intelligent operations centres in other cities. It consists of a digital control board
collecting street-level data in a variety of sectors, whose intent is to improve city
management (in terms of traffic, safety, flood and emergency response, and governance
with citizens). It will collect information on traffic congestion and accidents through
closed-circuit television (CCTV) cameras and Global Positioning System (GPS) devices
installed in school buses, ambulances, public buses and garbage trucks. The information
is automatically displayed on a digital screen in the Command Centre, allowing city staff
to make informed decisions in the case of emergency or traffic violations. It also collects
inputs from citizens on any concern they may raise about city management and
functioning. The Centre is managed by the Information and Communication Agency of
Bandung City, but each district of the municipality possesses a scaled-down version, as a
strategy for local government to decentralise smart city actions.
Other smart city projects in Bandung City include the development of mobile
applications in a range of fields (e.g. social networks, taxi service, amenities), in ad hoc
infrastructure projects such as the development of electronic parking and third-generation
bicycle-sharing systems, but also supporting strategies such as the introduction of digital
tools in city schools and educational programmes focused on ICT. These projects are not
always the sole responsibility of the City of Bandung; foreign companies (e.g. IBM) and
local universities, in particular Bandung Institute of Technology (Institute Teknologi
Bandung, ITB) have contributed to their development of smart city projects.
Box 3.1. Bandung Command Centre
The Bandung Command Centre is Bandung City’s flagship project for its vision to become a
smart city. It was initiated in early 2015, in partnership with IBM and Institut Teknologi
Bandung (ITB), one of the top universities in Indonesia, and is similar to other existing
command centres in Japan and Korea, aiming to improve public services. The centre consists of
a digital control board that allows city staff to remotely monitor traffic and manage crisis
situations in the city (in case of accidents, crime, etc.). Fifteen operators from the Bandung
Telecommunication and Information Agency work permanently in the Command Centre, but it
is also accessible to other city departments, such as fire brigades, police officers and transport
agencies. It collects information from the street level to make informed decisions to improve
such public services as ambulances, fire fighters and police intervention. The information is
shown on a digital screen in the Command Centre. Two types of methods are used to collect
street-level data:
• It uses CCTV cameras in streets and GPS tracking installed in school buses,
ambulances, public buses and garbage trucks. For instance, a traffic violation could be
easily spotted by the cameras and the information would be immediately transmitted to
the Centre and appear on the screen.
• In addition to CCTV cameras and GPS tracking, social media is used by the Command
Centre to collect information at street level. The Command Centre can be reached
directly by citizens from Twitter, and they can transmit via their smartphones or
computers any concerns they raise regarding safety and traffic (e.g. poor road
conditions).

Box 3.1. Bandung Command Centre (continued)
Some of the information gathered by the Command Centre is also accessible to the public.
The data collected through GPS devices in school buses can be viewed by the local population,
so they can make an informed decision if a bus is held up by traffic. The Command Centre is
being developed as a privileged interface of communication between governments and local
communities in the city.
The Bandung Command Centre also works as a data bank, storing information on traffic
violations, road infrastructure conditions, safety performance, disaster frequency and locations,
etc. It makes it possible to visualise the types of problems most frequently encountered in every
district of the city, and make a performance assessment for each of them. In future, smaller
operations centres will be opened in each district, in a strategy to decentralise smart city tool
management. The Centre is being developed in three stages, only the first of which has been
completed, and it is expected to cover management of other sectors in future.
Identifying green growth benefits of Bandung’s smart city vision and projects
Common applications of ICT-based smart city tools include the optimisation of
transport, electricity and water networks, grassroots participation and government
accountability. Opportunities to encourage urban green growth by increasing the
competitiveness of urban utility systems and their environmental performance, and by
enhancing governance, are therefore significant. It is not so far clear which development
objectives the City of Bandung’s smart city vision pursues, and to what extent the current
and future projects, and the vision itself, aims to support green growth objectives. The
ICT Master Plan lists environmental quality as an objective, but the document offers no
clear details on how this can be achieved. The City of Bandung should thus identify more
clearly, in the ICT Master Plan, the estimated development benefits of each smart city
project, with an emphasis on environmental and economic performance. For instance, the
Master Plan should identify benefits in terms of: environmental monitoring, reduction of
air pollution, increase in green growth awareness among citizens, performance of utility
systems with high environmental and economic dimensions (e.g. transport, energy, water,
solid waste, land use) and look for potential direct economic benefits (e.g. employment
and GDP output in smart city industries and services, green innovation).
To identify such benefits, the City of Bandung should explore how smart city tools
can support its functioning and governance. Typically, smart city tools in the world have
supported green growth in the following ways:
• They can be used to produce new data or improve existing data (qualitative
or quantitative). Indeed, more and more technologies can now automatically and
remotely measure, and therefore provide opportunities that did not necessarily
exist before because of the lack of technical, human and financial capacities of
governments – especially when it comes to producing real-time data. Existing
initiatives tracking individual mobility patterns in public transport networks
through smart card data are a good illustration. Data collected is commonly used
to identify problems to help city staff make informed decisions. For instance,
data on mobility patterns could help to adjust a public transport network. In
New York City, fibre-optic sensors placed on the Brooklyn Bridge provide real-
time information on the condition of this old infrastructure. In some cases, the
purpose of data production is not to inform public authorities but citizens, such
as smart water meters in households.

• In other cases, data production is not necessarily the objective of smart city
tools. For instance, they have been largely used to effectively ensure
compliance with new urban systems. One of the best examples is the third-
generation bicycle-sharing system, found in many cities in the world (e.g. Velib’
in Paris, France). The smart card used to unlock bikes at stations connects the
bike in-use with the ID of the user, including its bank account. This has been
successful in preventing theft, the main cause of failure of former bicycle-
sharing systems.
• Smart city tools can provide new opportunities for local governments to
regulate urban systems. A smart parking system in San Francisco
automatically adjusts prices according to available parking space — to match
demand. In Lyon, France, sensors placed in several locations of a new building
block automatically adjust the heat or cold, depending on how many people are
in the building. The electronic congestion toll of Singapore is an example of
how smart city tools can help to regulate, ensure compliance and collect data at
the same time.
• Smart city tools can help to increase security. A good example is the mobile
banking system in Nairobi, Kenya, which has helped the urban poor secure their
financial assets through mobile phones and save time to dedicate it to revenue-
generating activities.
• Finally, smart city tools can be used to create digital and convenient interfaces
between citizens and specific (public or private) services, or between citizens
themselves. The objective is to facilitate access to some services or collective
action. It is the case, for instance, of real-time data information about subway
lines in Tokyo, of the Uber system, and of the online platform for car-sharing
Blablacar, in France. A more extreme example is early warning systems, such as
the one set up in Rio de Janeiro, Brazil.
The main smart city initiatives that have supported urban green growth in the world
and in Bandung are listed in Table 3.1 below. The variety of projects shows the high
potential for innovation in this field. In Bandung, environmental monitoring,
improvement of transport systems, education and communication with citizens have been
the most critical projects under development, centred around the Bandung Command
Centre. However, the potential clearly exists to develop many more smart city projects in
all sectors. This chapter will elaborate on three development and green growth strategies
that can be supported through smart city tools: i) enhancing of data and knowledge on
green growth in Bandung; ii) improving transport and energy systems; iii) ensuring
resilience to natural disaster risks; and iv) ensuring social inclusion.
Finally, Bandung’s smart city vision does not have a clear, comprehensive
implementation and institutional framework. The contribution of Teknopolis to the
smart city vision is still unclear and it is not explicitly referred to in the ICT Master
Plan. Local government should try to institutionalise the smart city strategy, and
incorporate it into development strategies, to ensure its viability. Chapter 4 will discuss
this in detail.

Table 3.1. Main smart city initiatives for green growth in the world and Bandung to date
Sector Main smart city initiatives in the world Smart city initiatives in
Bandung City
General • Air pollution monitoring (Louisville, Kentucky; Chicago) • CO2 and CO emissions
environment • Greenhouse gas emissions sensors sensors
• Weather forecast sensors • Air pollution monitoring
(in development)
Energy • Smart electricity grid (China) n.a.
• Street lighting regulation (Besançon)
• Smart metering in households (Italy)
• Home/Building Energy Management System (Lyon, Yokohama)
• Renewable energy generation: smart shacks with solar charging
for mobile phones (Stellenbosch, South Africa)
• Resilience of the electricity grid (Maryland, Pennsylvania)
Water • Smart metering in households (Washington DC) • Digitalisation of clean
• Flood management through simulation software (Paris, London, water disaster reports
Rotterdam)
• Control of water levels in canals and rivers (Bangkok)
• Study of impact of sewer overflow due to storm water
(Philadelphia)
• Reduction of water leaks (Aquamatix; Leesburg, Virginia)
Transport • Smart card/integrated fare collection service (Paris) • Smart card (in
• Bicycle-sharing (Lyon) development)
• Free-service car-sharing (Paris) • Bicycle-sharing (pilot
• Online platform for car-sharing (France) stage in ITB)
• Smart parking system (San Francisco) • Electronic parking
• Electronic congestion toll (Singapore) system (in
• Smart taxi service (Uber) development)
• Mapping informal public transport routes (Nairobi) • Emergency services
• Maintenance of bridge conditions (NYC) management
• Traffic management centre (including forecast and distribution)
• Emergency services
Solid waste • Sensors in garbage trash to reduce waste consumption • GPS tracking of
(Barcelona) garbage trucks (10
• Smart bins (Groningen) currently operational,
• Improvement in the solid waste collection system (Maputo) with plan to cover all
• Smart optical sorters garbage vehicle fleet)
• Automated waste collection system (Singapore)
• Radio Frequency Identification Swipe Card (South Korea)
• Environmental reporting (London)
Land-use • Geographic information system (GIS) mapping n.a.
• Cadastre improvement (Mexico)
Governance • Increase efficiency of social services (NYC) • Bandung Command
• Open Data (NYC, Chicago) Centre
• Citizens’ communication
through social networks
Others • Earthquake detection (Japan) • Video crime monitoring
• Early warning systems (Rio de Janeiro/Austin) • Panic button
• Resilience through safe banking (Nairobi) • Digital classes
• Prediction of medical needs in case of disaster (USA) • Digital education
• Better identification of citizens in need of support in case of administration
disaster (NYC) • Online administrative
• Crowdsourcing post-disaster recovery (NYC) procedures (e.g.
• E-learning building permits, tax
• Electronic delivery to citizens records)
• Video crime monitoring

3.2. Enhancing data and knowledge on green growth in Bandung through ICT
Bridging the data gap through smart city tools

A common problem faced by all fast-growing Asian cities, including Bandung, is a
lack of data for assessing their performance on a variety of economic, social and
environmental indicators. Data is often lacking on the current status and evolution of air
quality and greenhouse gas (GHG) emissions, on commuting flows, on energy
consumption, on the potential socio-economic damage a given natural disaster can
generate, etc. This makes it difficult to evaluate the hazards citizens face daily (e.g. air
quality and disasters), and obscures what policies are needed for urban green growth and
planning public investment.
One of the smart city tools’ main advantages is the production, collection and
diffusion of such data. Modern technologies’ capacity to measure and transmit complex
information remotely in real time can help governments with technical, human and
financial capacity issues to increase their understanding of their cities. Smart city devices
can collect data in different ways: the smart device itself can collect the data, (as in smart
meters for household water and electricity consumption), or, for example, mobile phones
can offer data on mobility patterns through GPS. In Bangkok, sensors on water gates
provide real-time data on water levels in the city, allowing the local government to
control flood resilience infrastructure more efficiently. Smart devices can also help gather
more legible information from existing data: for instance, with geographic information
system (GIS) software mapping that uses information collected on the ground (Table 3.2).
Modern ICT can also collect crowdsourced data. This process allows citizens (“the
crowd”) to provide a service (or “outsource” a task) through data generated by the
citizens (whether voluntarily or not). Digital technologies increasingly connect citizens
directly (through smartphone applications, for instance) to the government and collect
data on the ground on a specific issue. In 2011, Transport for London, the local transport
agency that manages the London Underground system, collaborated with a group from
the University College of London to study the Underground’s daily operations. The study
used data provided by commuters’ Oyster smart cards to map the movement of users and
congestion at major stations. The digital data visualisation allowed by the smart card
system made it possible to model congestion patterns. This helped assess the impact of
potential mechanical failures of trains on specific lines or other service failures. 2 In
Louisville, Kentucky, the local government partnered with Propeller Health in 2012 to
distribute 500 smart inhalers to asthmatic residents. As users activated the devices, data
on time and location was sent to the patients’ doctor and city officials. This helped
generate a “heat map” of emergency asthma attacks. IBM analysis evaluated the data with
a range of potential causes (e.g. air pollution, traffic congestion, pollen outbreak),
identifying which areas were most at risk and needed intervention. The city now plans to
install air quality sensors on bicycles to identify the routes most at risk for children.3
Crowdsourced data does not necessarily require intensive investment. Generally,
open-source mobile applications can be used to collect data (while ensuring citizens’
privacy) and have proven to be successful in developing countries. In Nairobi, the
informal public transport network (matatu) was mapped using mobile phone data of
matatu users (see Section 3 below).

Table 3.2.Types of data collected by smart devices

Sector Type of data (general) Data collected by Bandung
General • Air pollution (sensor) • Humidity, temperature (sensor)
environment • Greenhouse gas emissions (sensor) • CO2 and CO emissions (sensor)
• Weather forecast (sensor) • Air pollution sensors (sensor, in
development)
Energy • Energy consumption in households (sensor) n.a.
• Power outage in the electricity grid (smart meters)
Water • Water consumption in households (sensor) • Digitalisation of clean water
• Water quality (sensor) disaster reports
• Water levels and pressure in canals/rivers and
pumps/gates (sensors)
• Weather forecast modelling
• Water flow patterns (simulation tools)
• Water infrastructure condition (pipelines, dikes, gates,
etc.) (sensors, GIS)
• Sewer overflow (sensors)
• Sea level rise map (GIS)
Transport • Transport users (smart cards) • Traffic situation (CCTV)
• Traffic situation (CCTV and sensors) • Parking congestion
• Parking congestion (electronic ticketing) • Detecting traffic events (CCTV)
• Automatic detection of traffic events (CCTV)
• Traffic violations (radar)
• Mobility patterns (mobile data)
• Bridge and road condition (sensors, GIS, mobile apps,
CCTV)
• Real-time transport schedule (Tokyo)
Solid waste • Amount of solid waste (sensors in garbage • Location of garbage trucks and
cans/trucks/landfills) efficiency of the collection
• Location of garbage trucks (GPS) system (GPS)
• Location of garbage in the city (mobile apps, sensors) • Digitalisation of reports on
cleanliness
Land-use • Vulnerability mapping (GIS software) n.a.
Governance • Data on citizens • Tax records (e.g. parking tax)
Others • Earthquake detection • Input from citizens

• Direct input from citizens (all sectors) • Emergency need (mobile
• Mobile phone usage* application)
• Ambulance turn-around times (computer software) • Digitalisation of land inventory
• Emergency needs (mobile phones) and cadastral data
* This could reveal a need for public Wi-Fi spots, see:www.atelier.net/en/trends/articles/manycities-maps-urban-
residents-daily-lives-produce-smarter-insights_437558?banner=1#ptlink.fid=23829&isc=1&did=bookmark.02e229
d5ce938f892eaba8e6d031dffeb798e5b6&ctp=article.
Leveraging capacity to produce, collect, and monitor data in Bandung

Bandung City’s smart city vision and the few projects being developed will help to
enhance data production. The Bandung Command Centre works as a data bank collecting
information on traffic violations and accidents through GPS and CCTV cameras installed
in the streets and on public vehicles. The Centre also collects information directly from
citizens on issues in the city (e.g. poor road conditions, crime). The Command Centre
makes it possible to visualise the problems most frequently encountered in every district
of the city, making a performance assessment for each. Smart devices in Bandung also
monitor parking congestion (with the new electronic parking system) and the location of
garbage trucks (Table 3.3). The ICT Master Plan also focuses on data collection, if not
specifically for environmental and green growth purposes. The initiatives consist mainly
of digitising existing, rather than producing new data (City of Bandung, 2013).

The Command Centre is a remarkable initiative for collecting data, but Bandung’s
smart city vision lacks comprehensive and clear objectives of data production on green
growth. In many opportunity areas listed in Table 3.3, the Command Centre at this stage
only slightly contributes to producing data. Energy sector data is not covered. The City of
Bandung should ensure that its capacity to collect data is progressively reinforced through
multiple smart devices. Efforts should be made not only to improve the data collected in
the sectors covered by the Command Centre (e.g. traffic), but on air quality, water and
energy consumption and solid waste generation, to provide city staff with an overview of
Bandung’s green growth performance. The city government can evaluate the smart data
collection options listed in Table 3.3 and plan how each could be progressively developed
over a given period, for instance, 10 years. The following sections will also list some of
the most important data needed for green growth in Bandung that can be part of broader
smart city initiatives. It will also be critical to centralise all the data collected in a single
system, so knowledge is not fragmented in administrative silos. The Bandung Command
Centre could easily undertake this task, since it collects data from a variety of sectors.
To complement this baseline data collection, the City of Bandung should undertake
more complex research on urban dynamics, in partnership with local universities and data
analysts from local technology companies such as IBM. Smart devices producing an
increasing quantity of data on the interaction of urban systems will require advanced
analytical capacity and could also be useful in informing the city government the next
smart devices to develop. As a regional innovation and education hub, Bandung is well-
suited to this task. Analytical research capacities could be developed through the creation
of Teknopolis, the future state-of-the-art urban district in Gedebage, in the south-east of
Bandung City. Details on the research capacity of the Teknopolis Master Plan are not
well developed, or on how it will become a smart district, another objective of the Master
Plan. The Transport Research Group (TRG) of the University of Southampton (UK)
specialises in research on all aspects of the development and application of a wide range
of Intelligent Transport Systems (ITS) (Department of Business, Innovation and
Skills [BIS], 2013). Similarly, the Hong-Kong Transport Information System (TIS) is a
centralised warehouse for the collection, processing and dissemination of data on
transport. It also includes a Road Traffic Information Service for citizens, a Driving
Route Search Service, and an e-Transport multi-modal portal (Department of Business,
Innovation and Skills [BIS], 2013). Bandung could usefully study such initiatives in each
green growth opportunity area. The Bandung Institute of Technology (ITB) could be a
major partner for smart city research groups.
To encourage research on the city, and develop smart devices for collecting data,
Bandung could create an open data website not only for city staff but researchers, citizens
and the private sector. New York City’s Open Data website, for instance, offers access to
dozens of datasets in a range of sectors, such as GIS maps of building footprints, maps
projecting the impacts of sea level rise, street tree census, time-series water consumption
data, bicycle parking, demographic statistics, etc.4 Such digital tools facilitate access to
data and spur innovation and research. Bandung could adopt a similar strategy to make
data more easily accessible to companies and universities and broaden the use of smart
city tools in diffusing knowledge. This would support the city’s strategies for smart open
government and transparency, and reinforce public trust.
Another initiative Bandung City could adopt would be to collect best community
practices and ideas/proposals that relate to green growth, using the Command Centre as a
central database. The small Command Centres planned for each of the city’s districts
could be used as the primary collector of such information, relaying them to the mayor

and his administration. A mobile “green growth” application could be used as an

interface between citizens and the Command Centres. Inputs could also be directly
uploaded in the centres by district officers. Along these lines, the OECD’s Observatory
for Public Sector Innovation (OPSI), accessible online,5 collects and analyses examples
and shared experiences of public sector innovation, providing practical advice on how to
make innovations work. Users interested in public sector innovation can access
information on innovations, share their own experiences and collaborate with other users
directly through the online platform. The Command Centres could replicate such a
mechanism, focusing on community practices and green growth. This would help
leverage existing practices, helping to avoid policies with poor prospects of success.
3.3. Enhancing the performance of green growth-related infrastructure
While data production is a significant achievement, smart city projects also aim to
improve the management of urban infrastructure. The transport and energy sectors are the
main beneficiaries of modern ICT. Many of the existing tools aim to alleviate traffic
congestion, and in the energy sector, principally target energy efficiency and renewable
energy development (although renewable energy (RE) is not always considered a smart
city application). Bandung’s efforts in this domain are not well-developed but have great
potential. The key will be to identify the right tools for transport and energy management
while contributing to urban green growth.
Smart transport opportunities for Bandung
Congestion, air pollution and GHG emissions from the growing numbers of private
motorised vehicles are the two most important green growth challenges faced by
Bandung City, along with solid waste management (see Chapters 1 and 2). Smart city
tools for transport have great potential for urban green growth. The local government has
already launched some ICT initiatives including:
• An electronic parking ticketing system is planned to rationalise the city’s
parking system. Electronic machines at the entrance of each parking area will
ensure compliance with parking rules (time limits, payment). The aim is to
discourage car use and raise municipal revenues; the local government is also
considering raising parking taxes.
• A smart card has been created to ease citizens’ access to services including
public transport. It is currently only used for the parking system, so users can pay
more easily (City of Bandung, 2015b). The card should become particularly
useful when the new mass transit networks (cable cars, monorail) become
operational, as it will be used to access several transport modes.
• Smartphone applications have been developed to give citizens better
information on public transport routes and schedules (angkot, buses, taxis). These
digital tools estimate travel time, give fares and suggest the optimal choice of
transport mode. They have been developed with the help of Telkom Indonesia
(PT Telekomunikasi Indonesia), the largest telecommunications services company
in the country, which hopes to extend them across Indonesia.
The City of Bandung should continue its efforts to improve its transport system, which
may not be sufficiently ambitious to solve the city’s congestion and air pollution.
Bandung’s bicycle-sharing programme could be upgraded to a third-generation system like
those that have been installed in many cities of the world since 2007 (e.g. Paris, Hangzhou).
Its bicycle sharing still works on a cash payment basis,6 which reduces its convenience. As

noted, third-generation systems use ICT to digitally connect bike users to their ID and bank
accounts, docking them electronically in case of theft or infringement of rules. This could
significantly increase the impact of the programme, as it has in Paris and other cities.
Commuting flows could be more thoroughly analysed to evaluate potential transport
needs. One study suggests that Bandung has a significant origin-destination mismatch,
resulting in long and complex individual travel patterns (Tarigan et al., 2015). In
examining the efficiency of the angkot system, currently the top paratransit option, city
staff could take inspiration from Nairobi, Kenya, where a team of international and local
analysts studied data from users’ mobile and GPS units to map the city’s 130 matutu
routes (similar to the angkot system), identifying stops and congestion. The results were
shown in a digital map accessible to citizens online. 7 The City of Bandung could
undertake a similar project, not to map the 38 angkot routes but to study congestion, the
location of stops, etc., to evaluate the network’s efficiency. This could show whether
some lines are underused and reveal commuting flows, which could help plan future
transit network development. Alternatively, GPS devices could be placed in each angkot
vehicle. Another measure to encourage the use of this mode of transport rather than
private cars and motorcycles would be to set up free Wi-Fi hotspots in angkot vehicles, as
an effective way to encourage the use of public transport, and to attract younger riders.
Traffic prediction is an increasingly popular smart transport initiative. In many cities,
events are recorded in real time by cameras and sensors are analysed through modern
technologies. In Singapore, the Land Transport Authority (LTA) has collaborated with
IBM on a scheme to predict traffic flow in the Central Business District, using real-time
traffic inputs and historic traffic data. The speed and volume results were highly accurate,
and will help LTA’s traffic controllers better anticipate and manage traffic (Department
of Business, Innovation and Skills [BIS], 2013). Opportunities for a similar system exist
at the Bandung Command Centre, which already manages some traffic information.
The local government should also continue to improve the parking and garage
management system. Singapore’s LTA launched the Parking Guidance System (PGS) in
2008 in response to rising congestion. The PGS collects data on the parking spaces
available at various car parks, and displays the collated data on nearly 30 electronic
information panels across the city. It allows car users to view parking options on the road,
and reduce the time and fuel costs of parking in the most congested areas of the city
(C40 Cities and Siemens, 2013). In San Francisco, a more ambitious project was initiated:
information on occupancy from all the parking areas in the city is collected, centralised
and integrated through digital technologies. This information is used to adjust the parking
fees according to occupancy and availability in other parking areas, to balance parking
throughout the city and alleviate congestion (Box 3.2).
An innovative practice for long-distance trips is a voluntary private car-sharing
platform. In France, the Blablacar start-up website allows the owners of private cars to
organise carpooling, to pool the cost of tolls and fuel. This can result in prices
competitive with other transport modes, such as trains or air travel.8 In addition, it could
alleviate congestion on some long-distance commuting flows, reducing air pollution and
GHG emissions. A congestion toll could also be set up, as in Jakarta, London and
Singapore, using electronic devices to ensure compliance.
In the longer term, Bandung could develop more ambitious options to improve
mobility. In addition to the bicycle-sharing system, an electric car-sharing system could
be developed by the local government, relevant international partners and local
stakeholders (e.g. Telkom and ITB, since they could provide local technical support). The

City of Paris, for example, set up the Autolib’ programme jointly with Bolloré (an
international French transport and logistics industrial group) in 2011. By July 2015, more
than 3 300 vehicles and 975 stations were operational. The principles are very similar to
the system of the third-generation bicycle-sharing: a user can borrow one of the electric
cars parked in specific stations in the city, and return it to another station. The
sustainability of the system is ensured by the digital identification that tracks the user,
while an electronic deposit is linked to the user’s digital ID. If a user misbehaves, the
system will be informed and can automatically take action. The electric car-sharing
system reduces the need for private cars in the city and avoids parking issues.
Box 3.2. Smart parking management in San Francisco
The San Francisco Municipal Transport Authority (SFMTA) SFpark project uses new technologies and
policies to improve parking in the city. The project was largely funded by the US Department of Transport,
which provided 80% (USD 19.8 million) of the programme’s total cost of USD 24.8 million. The project
involved 6 000 metered on-street parking spaces (about one-quarter of the city’s total supply) and 12 250
parking spaces in 14 city-operated garages (75% of the spaces managed by SFMTA). Around 11 700 parking
sensors were deployed, along with 300 repeaters and gateways. The key strategic initiatives in
SFpark included:
• real-time parking availability information to make it easier to find a parking space
• demand-responsive pricing to create parking availability
• longer time limits at parking meters to make parking more convenient
• meters that make it easy to pay by credit card and other forms of payment
• garage facility upgrades to make garages more convenient.
The main principle of SFpark is to use smart pricing so that drivers can quickly find open spaces. To help
achieve the right level of parking availability, SFpark periodically adjusts meter and garage pricing up and
down to match demand. Demand-responsive pricing encourages drivers to park in underused areas and
garages, reducing demand in overused areas. According to the SFpark Pilot Project Evaluation, the amount of
time that the target parking occupancy (60% to 80%) was achieved increased by 31% in pilot areas, compared
to a 6% increase in control areas. In so-called high payment (HP) compliance pilot areas (where people tend
to pay the meter most of the time), the 60% to 80% target occupancy rate nearly doubled. The amount of time
that blocks were too full to find parking decreased 16% in pilot areas, while increasing 51% in control
areas. HP zones saw a 45% decrease. SFpark maintained consistent parking availability while increasing use
of SFpark garages. Use of these facilities grew by 11%, far exceeding that of non-SFpark garages.
An estimated reduction in GHG emissions of 30% was realised, from 7 metric tonnes per day to
4.9 tonnes per day in the pilot areas. Vehicle miles driven also decreased by 30% (compared to a 6% decrease
in the control areas), and traffic volumes fell 8%.
In addition to the parking information map available on the SFpark.org homepage, information on parking
availability is distributed via a free SFpark iPhone app, Android app and the region’s 511 phone system.
Source: Woods, E. (2014), “Results in for San Francisco’s Parking Experiment”, Navigant Research Blog,
www.navigantresearch.com/blog/results-in-for-san-franciscos-parking-experiment (accessed 30 August 2016); SFpark
(n.d.), SFpark website http://sfpark.org/about-the-project/ (accessed 30 August 2016).
Smart energy opportunities for Bandung

At the local level, the energy sector has great potential for green growth. Unlike
transport and solid waste, this sector is not considered a top priority by citizens, since
the negative externalities of poor energy management (i.e. high GHG emissions) do not

visibly and immediately impact citizens. However, reductions in GHG emissions and
savings from higher energy efficiency should not be neglected. Digital technologies can
support energy efficiency and consumption. It is an area where digital technologies
have been most developed. These tools could help the Bandung City implement its
green building regulations (see Chapter 2). Developing smart city tools in this sector
would help align the city’s strategy with national objectives: the 2011 National Action
Plan for Greenhouse Gas Emissions Reductions (RAN-GRK) identifies energy
management, including energy efficiency and energy conservation, as a critical pillar
for implementation (RAN-GRK targets 17% energy savings in the industrial sector,
15% in the commercial sector and 15% in the residential sector). RAN-GRK is being
reviewed by Bappenas for the period 2014-19. The review of RAN-GRK is conducted
in accordance with Indonesia’s Intended Nationally Determined Contributions (INDCs)
as part of its contribution to the global community under the United Nations Framework
Convention on Climate Change (UNFCCC).
The City of Bandung should look for opportunities to reduce energy consumption at
the street level. Some cities have installed digital systems that remotely control street
lighting depending on street traffic. In Besançon, France, the local government has set
up a smart street lighting system (LUBIO) in co-operation with Schneider Electric. The
objectives were to adjust street lighting during daylight hours, when lighting was not
necessary, and to reduce the intensity of street lightning remotely between 10 p.m. and
6 a.m., when needs are lower. Street lights were also replaced by more efficient light
bulbs. The project was mainly financed by the energy savings realised under this smart
system, estimated at 42% to 50%. 9 In Bogor, Indonesia, the French Development
Agency (AFD) is undertaking a smart street lighting project. Smart command of the
lighting system could be integrated with the Bandung Command Centre, and financed
at least in part through the Street Lighting Tax (PPJ), collected by the State Electricity
Company Perusahaan Listrik Negara (PLN) as a percentage of customers’ electricity
bills and transferred to the local governments. The revenue is usually used to finance
the installation and maintenance of lighting systems. Digital technologies can also
realise energy savings at the household level. The French energy company EDF is
developing home energy monitors that show past and present energy consumption and
how much it costs, allowing users to make informed decisions about their energy use.
Such smart metering systems (not only for electricity but water) will, however, require
a national reform of PLN’s tariff systems. Electricity pricing in Indonesia is based on
installed capacity and not household consumption, which prevents real-time dynamic
pricing.
Technologies can also support the production of RE. In Stellenbosch, a small town
outside Cape Town, South Africa, an initiative has encouraged the construction of
“smart shacks”, easy-to-assemble fire-proof homes that produce off-grid energy
through rooftop solar panels.10 This could be particularly useful in Bandung’s informal
settlements. The City of Bandung could also start considering more ambitious and time-
consuming projects for smart energy management, combining energy efficiency and RE
smart tools. The City of Lyon has redeveloped an old industrial area into a new eco-
district known as Confluence. In this new district, three buildings have been developed
as positive-energy buildings. Combining smart architectural design, ICT sensors and
energy-efficient technology, these buildings can produce more energy than they
consume (Box 3.3).

Box 3.3. Energy-positive eco-district in Lyon, France
The new eco-district of Lyon Confluence, a 1.5 square kilometres project initiated in 2001, doubles the area
of the urban peninsula between the rivers Rhone and Saone, in the commercial heart of Lyon. One of its
objectives is to produce no more CO2 in 2020 than in 2000, despite the construction of 1 million square metres of
new buildings. Within the new eco-district, three buildings designed by the architect Kengo Kuma are connected
through a common energy management system, whose aim is to produce more energy than it consumes. These
buildings are named “Hikari” (“light” in Japanese). They are the first “positive-energy” building block in
Europe, at a size of 12 800 square metres (similar projects were previously limited to the scale of an individual
building). The project involved a partnership between Bouygues, NEDO (the Japanese public agency promoting
environmental and industrial technologies and renewable energy) and Toshiba.
The concept underlying Hikari is a pooling of needs and resources. The three buildings, a mix of offices,
housing and commercial areas, communicate with each other and distribute energy according to the needs of
each building. Excess energy is stored and used in peak hours, thanks to a fuel cell, taking advantage of the fact
that offices are empty at night, while housing occupancy is high. Energy produced in offices on non-working
days can be reinjected into the apartments. In the basement, a central brain drives the system overall.
Energy is produced by solar panels on the roof and balconies of the 42 apartments. It is completed by a
rapeseed oil fuel co-generator. The cooling requirements of the offices and shops are covered by an “absorption
chiller” that produces ice water from the heat created by the co-generator and the cold from the water table. A
geothermal system also contributes to cooling by drawing in the cool waters of the Saône. Hikari consumes 50%
less than the standards of the current thermal regulations and produces a higher amount of energy than its
consumption, about 0.2%. The building’s architecture is also innovative: the building envelope adapts to the path
of the sun, absorbs and controls the light radiation and energy intake. Large cuts carve the glass facades, wood,
aluminium and stone to make the most of natural light inside the buildings.
ICT are at the heart of Hikari’s system. The buildings are full of sensors that measure temperature and CO2,
but also detect the presence of people in the rooms, monitor ventilation, lighting, etc. They record a series of
parameters that allow the central “brain” to regulate the production of heat and cold in real time. Continuously
calculating consumption, the system informs users of the performance of their office or home and the entire
building. Each household is equipped with an energy-tracking tablet adjusting the temperature of an apartment to
residents’ needs.
The cost of housing in Hikari is high, the equivalent of housing in the most beautiful areas in Lyon. All
housing units have been sold, however, partly because the new owners were attracted by the possibility of
controlling and regulating their energy consumption.
Source: Le Monde (2015), “A Lyon, Hikari, le premier îlot urbain à énergie positive”,
www.lemonde.fr/planete/article/2015/09/17/a-lyon-hikari-le-premier-ilot-mixte-intelligent-a-energie-positive_4761665_3244.html
(accessed 02 October 2015).
3.4. Making Bandung resilient to natural disaster through smart city tools
Urban resilience to natural disaster risks is a critical condition for ensuring long-term
green growth in many Asian cities. The 2011 mega flood that hit the Bangkok
Metropolitan Region and other parts of Thailand is reported to have been among the
costliest natural disasters since the 1980s, resulting in losses in the global supply chain of
USD 44.2 billion and significantly slowing Thailand’s economic growth in the months
after the floods (OECD, 2013). In the City of Bangkok alone, the damages reached
USD 9.3 billion. Bandung is also routinely affected by floods, and although such events
have not affected the city with comparable intensity, it must prepare for potential shocks,
since climate change involves uncertainty about the occurrence and intensity of floods,
hurricanes, etc. Floods, earthquakes, fires and landslides are the most common disasters
in Bandung. Smart city tools can be an effective means to make Bandung more resilient

to disaster risk. While the Command Centre will be useful for co-ordinating the action of
emergency response teams, developing other smart initiatives could allow the city to
tackle the lack of resilience more comprehensively, by enhancing urban planning,
infrastructure management and the effectiveness of local community and private sector
engagement before, during and after a disaster.
Mapping vulnerable urban areas through digital technologies

While Bandung has not been affected by a major natural disaster in recent years, the
lack of comprehensive strategic planning for urban resilience suggests that the city is
nevertheless vulnerable to potential threats. Lack of urban planning can make an
important factor in such vulnerability. Other cities already use digital tools to inform
urban planning decisions. This represents an opportunity for Bandung to promote its
smart city vision while ensuring urban resilience.
One of the most common digital tools used for this purpose is geographic information
system (GIS) mapping. For floods, it consists in overlaying different types of GIS maps
(e.g. topography, rivers, infrastructure, land use) to identify populations physically
exposed to floods and earthquakes. The City of Bandung has not developed a hazard map
to identify such populations and take action to reduce the potential human and economic
damages of floods or earthquakes. The City of Kumamoto, Japan, has set up a smart tool
initiative to obtain data directly from local residents to inform hazard maps. Citizens can
directly access a digital base map provided by the municipality and add information about
the vulnerability of their own house.11 A common obstacle shared by many developing
cities is the difficulty of collecting data (e.g. the number and size of households) in the
poorest areas of the city. These tend to be located in sites such as riverbanks that are
vulnerable to floods or earthquakes. In Bandung, adopting a strategy like the City of
Kumamoto’s will require investments to engage the poorest communities, through ICT
training, for instance. Recent projects in the developing world have shown this can be
achieved. In Dar es Salaam, Tanzania, locally trained students equipped with tablets have
roamed the slums and mapped them for the first time (see Section 3.5). Similar processes
could be used to create vulnerability maps in Bandung.
GIS hazard maps are relatively static and do not allow for the dynamic impact of a
disaster such as a flood. The City of Bandung could also consider complementary types
of digital technologies to inform urban resilience. The Public Utilities Board of
Singapore, for instance, is using a simulation software called 3Di12 that not only measures
real-time water levels in different places in the city, but analyses, models and forecasts
potential water flows in case of flash floods. Such a system can help identify catchment-
wide solutions to reduce the speed of surface run-off in urban areas, to identify which
areas to monitor and to decide pro-actively on appropriate land-use and infrastructure
strategies (Public Utilities Board of Singapore, 2013). Such technology should be
distributed to the local authorities in the West Java Province and to the provincial
government, to assess region-wide water flows and encourage a comprehensive regional
approach. The software may help identify weaknesses in other local areas that are risk
factors for Bandung. Another recently developed tool is the Aqueduct Global Flood
Analyzer developed by the World Resources Institute (WRI), Deltares, the Institute for
Environmental Studies, Utrecht University and the Netherlands Environmental
Assessment Agency. This estimates the human and economic damages of floods, based
on different scenarios and geographical scales. It estimates, for instance, that even in a
scenario of moderate climate change and continuation of current socio-economic
development trends, and assuming a 50-year infrastructure protection, the West Java State

could suffer damages of more than USD 500 million by 2030, affecting more than
47 000 people. West Java is the smallest unit of analysis and does not produce detailed
information on the City of Bandung or its metropolitan area. The local government could
consider using such tool to produce data at the local level.
Evaluating the impact of disasters on urban infrastructure

Smart city tools for resilient urban infrastructure are also being developed. Many
other cities rely on sensors to monitor water levels and seismic activities. In Southeast
Asia, the Bangkok Metropolitan Administration created a Flood Control Centre (FCC)
in 1990 using computer technology to systematically manage flood protection. The FCC
monitors and collects hydrological data (rainfall and water level), data on the condition of
operation facilities, on flood damage and water quality, using an online system. This
helps city staff remotely monitor water gates and pumps of the main canals and the river
of the city, so they can act quickly and efficiently in case of floods (OECD, 2015). The
FCC has room for improvement (such as adding more elaborate analytical capacity, such
as the 3Di tool), but could be used as a starting point for smart resilient infrastructure in
the City of Bandung. A complementary initiative the City of Bandung could take to
monitor river and canal management is to assess the conditions of waterway
infrastructure, such as gates. In Santa Clara County, California, district field staff was
sent to the field to catalogue the condition of such infrastructure, with the help of GIS
tablets. Digitising information made it more easily accessible to the city government.13
Bandung also needs to assess the quality of river and canal water, which could become a
major health hazard in floods. Sensors could be placed in strategic locations to send data
to the Bandung Command Centre for on-screen visualisation.
A critical issue undermining green growth and urban resilience in Bandung is poor solid
waste management. Uncollected and untreated solid waste can become a severe health
hazard when a flood occurs and ICT opportunities could be explored to improve its
management. A smartphone application could be created to report uncollected solid waste
in the city, so that citizens could alert a special waste management unit of the City of
Bandung. The Bandung Command Centre could easily collect such input from citizens, as it
already does through Twitter. The city government would need to conduct public
programmes to communicate the benefits of such application. In Maputo, Mozambique, a
World Bank initiative uses crowdsourcing via mobile applications to gather input from the
citizens and waste collectors about the location of garbage in the city. This has reduced
dumping in inappropriate sites. 14 The Love Clean London initiative similarly allows
citizens to report environmental problems such as poor waste storage, through texts,
uploaded photographs and reports submitted through a free application. The reports can be
rendered in graphic form on a map by the city government to show where clean-up is most
needed (Department of Business, Innovation and Skills [BIS], 2013). The GPS devices that
have already been installed on garbage trucks sending data to the Bandung Command
Centre could be an opportunity to digitally map the location of garbage bins where trucks
stop, and to study the efficiency of the collection process. A total of 202 garbage trucks in
the city directly collect waste from households on an irregular basis (Tarigan et al., 2015).
In the longer term, smart city tools could be more ambitious. In the City of Barcelona,
garbage bins are equipped with sensors that send alerts to residents when they are full, to
encourage them to minimise waste and recycle. In Groningen, the Netherlands, smart bins
automatically send text messages to the city government when they are full. This reduces
labour and petrol costs – and thus the environmental impact – by sending garbage trucks

only to bins that need emptying (Department of Business, Innovation and Skills [BIS],
2013). Similar technologies could be used in temporary site stations.
ICT could also provide a better understanding of the performance of infrastructure.
Tools could be developed to grasp the complexity of the impact of a natural disaster on
urban infrastructure, and how to co-ordinate management of all types of infrastructure
(transport, energy, water, etc.) when a disaster occurs. Rio de Janeiro’s Operations Centre
is one innovative initiative, developed in partnership with IBM. The Operations Centre, a
citywide data system, gathers information on different types of urban infrastructure. It
collates all data, input online, to identify trends and complex impacts of potential
disasters, such as floods, fires and landslides (Box 3.4). This can help decision makers
select the most appropriate action and identify which urban areas need support. The City
of Bandung could consider developing such technology, and integrating it into the
Bandung Command Centre. This could extend the disaster response capacities of the
current centre, which are mostly limited to police and fire brigade action.
Box 3.4. Rio de Janeiro’s Operations Centre
In 2012, the city government of Rio de Janeiro and IBM signed an agreement to build a public information
management centre for the city. Other partners engaged in the construction of this Centre are Cisco, Cyrela,
Facilities, Malwee, Oi and Samsung. The facility is built on the principle that only by considering and co-
ordinating the man-made and natural systems of a city holistically can municipal leaders manage the
complexities of a large, modern city.
The Rio Operations Centre in Cidade Nova gathers information from more than 30 government departments
and public agencies in the municipality to improve city safety and responsiveness to incidents such as flash
floods and landslides. Its mission is to consolidate data from various urban systems for real-time visualisation,
monitoring and analysis, giving operations managers a comprehensive picture of what is happening in the city at
any time. Representatives of the various departments in the operations centre can look at live videos of city
streets and facilities or graphic representations of data feeds, and make group decisions. The system was initially
designed to forecast floods and related emergencies, but it can be extended to any event occurring in the city,
such as sports events or a traffic accident. The aim is for the centre to integrate more city departments and
information. The administration has already been developing routine operational uses for the centre: garbage
trucks co-ordinated by GPS can be repurposed for other tasks if necessary, enhancing the efficiency of resources
management.
Similar projects have already been implemented in New York City and Gauteng in South Africa, but this is
the first centre in the world that will integrate all the stages of a crisis management situation: from prediction,
mitigation and preparedness, to the immediate response to events, and finally to capture feedback from the
system to be used for future incidents. The system is especially vital for protecting lives in the city’s poor
mountainside communities, or favelas, where tens of thousands of people live in areas with a high risk of
flooding and landslides.
Source: IBM (2010), “City Government and IBM Close Partnership to Make Rio de Janeiro a Smarter City”, www-
03.ibm.com/press/us/en/pressrelease/33303.wss (accessed 30 August 2016); Hamm, S. (2012), “Smarter Leadership: How Rio de
Janeiro Created an Intelligent Operations Center”, Building a Smarter Planet (blog),
http://asmarterplanet.com/blog/2012/03/smarter-leadership-how-rio-de-janeiro-created-an-intelligent-operations-center.html;
Department of Business, Innovation and Skills (BIS) (2013), “The Smart City Market: Opportunities for the UK”, Research Paper,
No.136.
Involving local communities and the private sector in building resilience

In addition to urban planning and infrastructure, the private sector and local
communities have an important part to play in ensuring the city’s resilience. The Internet
can diffuse information on natural disasters and how to prepare for them. The Greater

London Authority’s website sets out key actions businesses can take in the event of
disaster, and pools knowledge on best practices for urban resilience worldwide. The City
of Bandung should replicate such digital tools while diffusing information about
resilience more comprehensively. The overall objective should be to engage the private
sector and local communities before, during and after a disaster.
Additional information could be shared with businesses and citizens to increase their
preparedness for disaster. Hazard maps could be sent out on social media accounts
associated with the mayor or the Bandung Command Centre, which citizens already
consult regularly. This could help raise public awareness of the areas most vulnerable to a
flood or an earthquake. The City of New York has developed Flood Insurance Rate Maps
(FIRMs) of vulnerable urban areas to inform homeowners and tenants who might need to
purchase disaster insurance (City of New York, 2013).
In a disaster, ICT could help develop efficient early-warning systems and mobilise
emergency services more quickly. Coupled with meteorological weather forecasting
systems, advance warning times can be increased from a matter of minutes or hours to
one or more days. Increased advance warning can potentially allow those affected to
move their families, livestock and assets out of harm’s way, and to protect property and
other possessions that cannot be relocated in time. The Bandung Command Centre could
connect information on water levels collected through sensors and warning systems that
could automatically be activated. A digitised, georeferenced database of natural streams
and man-made drainage channels could help identify where to install such sensors. The
centre already informs police and fire brigades if a disaster occurs, but the local
government should also include citizens as a critical resource to ensure resilience. Early-
warning systems could be installed throughout the city and remotely controlled. Screens
in shopping malls and other public areas (e.g. green public space) could broadcast
information on what citizens should do during a flood or earthquake. Social networks
such as Facebook and Twitter, and SMS to citizens’ mobiles could be used. Austin’s
Flood Early Warning System (FEWS) in Texas, a good example of a successful smart
warning system, combines flood maps, real-time data and predictive modelling to
improve the efficiency of evacuation decisions and plans. It predicts which streets will be
flooded up to six hours in advance and maps flooded areas and road closures. Before this
system was set up, evacuation was generally carried out after the disaster occurred. In Rio
de Janeiro, slum settlements are alerted by smart city tools, and the Operations Centre
remotely controls sirens that show residents of the poorest urban areas where to shelter in
heavy rainfall.
Smart city tools could also help mobilise the resources of the private sector and local
communities in responding to a disaster. Organising domestic and international support
effectively was one of the issues the Philippines faced in 2013 after cyclone Haiyan
struck. During the 2011 Bangkok mega flood, volunteers’ help was critical in mitigating
the flood’s impact (OECD, 2015). Smart city tools could help local government contact
volunteer communities (including companies that can provide such basic needs as water
and food) and co-ordinate support. Leaders of volunteer communities should be
identified, so they can easily be contacted to organise civil society in any emergency.
They could for instance be equipped with mobile device so that the local government or
the Command Centre can reach them directly. In general, a database should be built so
this potential support can be mobilised in case of disaster.
Smart city tools can also help local government and agencies coping with a disaster
to obtain street-level information from citizens to identify priorities. If Bandung were to

face a major earthquake, flood or volcanic eruption, it should develop a system to
identify priority needs. Typically, this might be through the emergency switchboard
(e.g. 911 in the United States), but these can be overwhelmed by the volume of calls in
a disaster. During Hurricane Sandy, New York City’s switchboard received 20 000
calls an hour, many of which were not emergencies. The resulting slow response times
and lack of prioritisation made it difficult to support residents in life-threatening
situations. The city is trying to educate citizens about what qualifies as a 911 call, but is
also developing a parallel 311 line able to analyse text and data received through SMS,
calls and social media posts, for less urgent reports. This should become an effective
reporting mechanism to help the Bandung City rank its priorities and act accordingly.
The Bandung Command Centre could become a central unit collecting and organising
such data. It is already collects citizen input on Twitter, but the staff in charge of the
Command Centre must be ready to receive more input in case of disaster.
In the vulnerable areas, smart city tools can help predict medical needs in advance. In
the United States, Direct Relief developed a database of areas most likely to need such
support as Hurricane Sandy approached New York. It crossed-cut information between
GIS-based vulnerability maps (assessed not only in terms of physical exposure but also
social and economic vulnerabilities) with the location of buildings citizens were likely to
choose as places to ask for help (including pharmacies). This helped the city plan for
medical support by area, and prepared to dispatch aid effectively when disaster hit.
3.5. Making the smart city inclusive
One of the key challenges of the smart city is to make sure all the residents can
benefit and contribute to the smart city services/opportunities developed by the local
government and ICT companies. In a developing country like Indonesia, the Internet and
smart devices such as smartphones are not ubiquitous, which can significantly undermine
the efficiency of smart city services and in the poorest urban areas. A “digital divide”
may prevent some citizens from accessing information online (e.g. on disaster risk
management) and from participating in the city’s life through an online platform of
discussion. The smart city vision of Bandung aims to improve education, health care,
security, community outreach, Internet literacy and citizen engagement. However, it is
not clear what role digital technologies will play in this, especially for the more than
120 000 slum dwellers and the population living below the poverty line (around 8% of the
total population, or around 200 000 inhabitants).
The City of Bandung should thus ensure the current smart city vision develops
specific ICT strategies to make green growth inclusive. Targeted action in low-income
communities and education and training programmes on ICT for the urban poor could
reap high rewards. The local government could couple these initiatives with the slum
revitalisation programme undertaken with the Ministry of Housing since 2014, which has
included the provision of basic infrastructure and services.
Promoting smart green growth in low-income communities

The smart city strategy of Bandung promotes citizen engagement. The Command
Centre has been developed as a privileged interface of communication between the local
government and the people living in the city. It is directly accessible by citizens from
social media, in particular Twitter, which can directly transmit via their phones or
computers any concern they raise or problems they witness in the city, on a range of
topics (environment, traffic etc.). For instance, they can report a road that needs repair by

posting a photo of the problem on the City of Bandung’s account. The Command Centre
collects this feedback and digitally maps it on a screen visible to the local government.
This system allows city staff to evaluate the problems citizens are encountering in each of
the eight districts, and identify which problems have been most frequently pointed out, by
area. This is a remarkable initiative, but many residents may not be able to contribute
because they do not have access to ICT, such as smartphones. The City of Bandung
should thus seek ways of involving low-income communities in this process, since they
are more likely to face problems of access to public services, failing infrastructure and
damage from natural disasters.
One solution for local government could be to rely on NGOs with a strong network in
the urban slums, identify community leaders and give them the opportunity to contribute
to the feedback system of the Command Centre, by installing a community computer
connected to the Internet. In Dar es Salaam, Tanzania, local students were given access,
trained to use smart technologies, such as OpenStreetMap, and tablet computers. Students
used these technologies to map the slums in the city for the first time, providing a visual
map of the slums and their needs in terms of people and infrastructure. 15 A similar
strategy could be pursued in Bandung, which has no accurate map of urban slums, and
could be combined with current projects to create a database on poor areas led by the
Agency of National Unity and Community Empowerment (Badan Kesatuan bangsa dan
Pemberdayaan Masyarakat). Smart city tools can also be used to tackle informality, by
registering online slum residents and informal economic activities in municipal databases
(which should be digitised).
Smart city tools can also allow the urban poor to access critical services. In Nairobi,
Kenya, the M-Pesa mobile money service has given slum dwellers a virtual place to
keep their cash, safe from slum fires and helping them to save money and time on
travelling to banks. This has also resulted in initiatives such as a link-up with water-
pump provider Grundfos Lifelink to provide communities with water paid for through
M-Pesa, and NGOs making social payments to slum residents.16 For Bandung’s urban
poor, such a project could have some impact. The local government should also find
innovative ways to make access to the Internet more easily available in slums, as an
expansion of current projects to multiply the number of Wi-Fi hotspots in the city. This
would help support such objectives as online registration and e-learning. In New York
City, a local government project aims to replace unused and obsolete payphones with
Wi-Fi hotspots.
Online access can also be an opportunity to shed light on the issues faced in the poor
urban areas and encourage participation of diverse stakeholders in improving living
conditions. In India, an entrepreneur created an online collective platform where
businesses, institutions, academics and residents could participate in a contest to build a
house for USD 300. The idea was to use the platform to imagine new urban solutions,
using open data and open innovation to better serve citizens. The experiment proved
successful, and a house was built in a slum area.17
Ensuring access to smart services for all

One of the conditions for making smart city strategies inclusive is to ensure that
digital technologies can be used by everyone. This will require not only access to such
technologies, but a population that knows how to use them and is aware of their benefits.
In the City of Bandung, digital technologies have great potential for success, since 60%

of the population is below 40 (City of Bandung, 2015a). The following ICT educational
policies have already been initiated at the instigation of the mayor:
• One of the city’s flagship educational policies is the “Bandung Digital Valley”, a
set of teaching programmes developing the use of IT and their development by
local start-up companies. This involves a close partnership with alumni students
of local universities and Indonesian companies.
• Digital classes for junior high and elementary schools (with a smart board and
tablets in class) have been set up. Online submission and selection procedures
were introduced in junior and high schools.
• Vocational high schools focused on ICT were created to develop an ICT
workforce in the city.
• 108 schools have been connected by fibre optics to enhance Internet connections
there.
More emphasis could be placed on scaling up ICT educational programmes and
training, especially for the urban poor. The City of Bandung should create specific
programmes for these communities, in collaboration with local academic institutions and
NGOs. Bandung has more than 80 colleges, universities and higher educational
establishments (City of Bandung, 2015a), and active NGOs such as YPBB (Yayasan
Pengembangan Biosains dan Bioteknologi). E-learning should occupy a central role in
educational methods for low-income communities, to compensate for the lack of skilled
teachers in these areas and allowing residents to follow courses independently. In
Stellenbosch, South Africa, electronic hubs with downloadable educational resources
have been installed.18 Such programmes not only encourage education but help develop
ICT-friendly programmes for low-income communities. Bandung could replicate such
initiatives in the poor areas of the city, while promoting them in awareness-raising
programmes. Scholarship programmes focused on ICT education could also be created to
encourage children from low-income households to benefit from and contribute to the
smart city opportunities.
ICT can help increase performance in the education system. Bandung’s Sistem
Informasi Manajemen Pendidikan (SIMDIK) programme is a digital management system
for educational establishments that support students’ enrolment, financial operations and
academic curricula. The national government’s Data Pokok Pendidikan (DAPODIK)
programme (Basic Education Data) has been applied in several cities: it aims to collect
data on education in Indonesia and centralise it in online databases, to help policy makers
formulate and target educational programmes. Such a programme could be expanded to
create databases on ICT literacy of citizens by province, city and district.
To raise awareness of smart city tools among the urban poor, and help city
government identify obstacles to their diffusion in poor areas, representatives of poor
communities should be involved in developing Bandung City’s smart city vision. These
should be invited to the specific advisory group, among the six created by the mayor (see
Chapter 4) focusing on the smart city. This would create a communication channel
between the local government and the urban poor and help design projects to address
poverty and access to basic urban services.

• Develop a clearer and more comprehensive smart city framework for current and
future projects in each critical policy sector, and their benefits for urban green
growth.
• Create a roadmap for the progressive development of smart devices that produce and
collect urban data and knowledge on green growth. Sensors for energy consumption
and measuring water levels are most urgent.
• Identify sources of congestion and the efficiency of the angkot system through GPS
and mobile phone data, improving parking management through an automatic
guidance system and price adjustment.
• Develop smart energy management systems in new buildings, and smart electricity
meters, supported by a national reform introducing real-time dynamic pricing of
electricity.
• Enhance resilient urban planning through GIS vulnerability mapping and flood
simulation software.
• Develop the capacities of the Command Centre to manage infrastructure in times
of disaster by collecting real-time data on their condition.
• Create a smart early-warning system and ICT mechanisms to reach out to the private
sector and local communities and provide assistance in case of disaster.
• Create mechanisms (scholarships, e-learning) to help the urban poor benefit from
current ICT educational programmes, and use local residents and NGOs with strong
networks in slums to provide data through digital tools such as GIS.

Notes
1. See: Smart Cities Council (2014), “Smart waste revolution to drive $42 billion in
revenues over next decade”, http://smartcitiescouncil.com/article/smart-waste-
revolution-drive-42-billion-revenues-over-next-decade (accessed 2 April 2016).
2. See: Data Smart City Solutions (2013), “Streamlining the London Tube with Data”,
http://datasmart.ash.harvard.edu/news/article/oyster-cards-clarify-tube-congestion-
202 (accessed 8 October 2015).
3. See: Data Smart City Solutions (2015), “Monitoring Air Quality and the Impacts of
Pollution”, http://datasmart.ash.harvard.edu/news/article/monitoring-air-quality-and-
the-impacts-of-pollution-679 (accessed 8 October 2015).
4. See: NYC Open Data (n.d.), NYC Open Data website,
https://nycopendata.socrata.com/.
5. See: OECD (2016), Observatory of Public Sector Innovation,
www.oecd.org/governance/observatory-public-sector-innovation/ (accessed
31 August 2016).
6. The current bicycle-sharing programme works like a bicycle rental system, except
that the bicycles can be returned to other stations in the city.
7. See: The Guardian (2014), “Cities in motion: how we mapped the matatus of Nairobi”,
www.theguardian.com/cities/2014/feb/19/cities-motion-how-we-mapped-matatus-
nairobi (accessed 09 October 2015).
8. See: BlaBlaCar (n.d), BlaBlaCar UK website, www.blablacar.co.uk/ (accessed
31 August 2016).
9. See: Schneider Electric (n.d.), “La smart city : la ville devient intelligente”,
www.schneider-electric.fr/sites/france/fr/solutions-ts/enjeux-de-l-energie/Smart-
City.page (accessed 31 August 2016).
10. See: The Guardian (2013), “Smart cities: adapting the concept for the global south”,
www.theguardian.com/global-development-professionals-
network/2013/nov/21/smart-cities-relevant-developing-world (accessed 6 October
2015).
11. See local disaster preparedness hazard map for Kumamoto City: www.ntt-
west.co.jp/shs/en/town/kumamoto/pdf/en_kumamoto.pdf.
12. The 3Di Water Management software was developed by Deltares, the Delft
University of Technology and Nelen & Schuurmans, in the Netherlands.
13. See: Data Smart City Solutions (2016), “A Catalog of Civic Data Use Cases: How
can data and analytics be used to enhance city operations?”,
http://datasmart.ash.harvard.edu/news/article/how-can-data-and-analytics-be-used-to-
enhance-city-operations-723 (accessed 31 August 2016).

14. See: Sci Dev Net (2014), “Developing world gets city smart”,
www.scidev.net/global/cities/feature/developing-world-city-smart.html (accessed
31 August 2016).
network/2013/nov/21/smart-cities-relevant-developing-world (accessed 6 October
2015).
16. See: Sci Dev Net (2014), “Developing world gets city smart”,
www.scidev.net/global/cities/feature/developing-world-city-smart.html
(accessed 31 August 2016).
17. For more information on the 300 dollar house see: www.300house.com/ (accessed
6 October 2015).
network/2013/nov/21/smart-cities-relevant-developing-world
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www.theguardian.com/cities/2014/feb/19/cities-motion-how-we-mapped-matatus-
nairobi (accessed 09 October 2015).
The Guardian (2013), “Smart cities: adapting the concept for the global south”,
www.theguardian.com/global-development-professionals-network/2013/nov/21/smart-
cities-relevant-developing-world (accessed 6 October 2015).
Washburn, D. et al. (2010), “Helping CIOs understand ‘Smart City’ initiatives: Defining
the Smart City, its drivers, and the role of the CIO”, Forrester Research, Inc.,
Cambridge, Massachusetts,
http://public.dhe.ibm.com/partnerworld/pub/smb/smarterplanet/forr_help_cios_und_s
mart_city_initiatives.pdf.
Woods, E. (2014), “Results in for San Francisco’s Parking Experiment”, Navigant
Research Blog, www.navigantresearch.com/blog/results-in-for-san-franciscos-
parking-experiment (accessed 30 August 2016).

4. GOVERNANCE FOR GREEN GROWTH IN BANDUNG – 109
Chapter 4
Governance for green growth in Bandung
Chapter 4 examines governance challenges faced by all levels of government, the private
sector, civil society and other stakeholders in the Bandung Metropolitan Area (BMA) to
implement strategies and policies and encourage urban green growth. This chapter is
structured into the four sections:
1) co-ordination challenges between governmental bodies
2) financing urban green growth
3) international co-operation for urban green growth
4) engaging and collaborating with local stakeholders.

110 – 4. GOVERNANCE FOR GREEN GROWTH IN BANDUNG
Key findings
• Co-ordination across levels of government is a critical obstacle to urban green growth

in Indonesia. While vertical alignment of strategies can enhance national guidelines on
green growth to be translated at lower levels of government, national policy frameworks
recognising the role of cities are missing in the solid waste management, energy and
smart city sectors. The national government could work with provincial and local
governments to improve local capacity for national policies.
• Horizontal co-ordination in the BMA is also an obstacle to green growth.
Decentralisation reforms since the late 1990s have fragmented development processes at
the local level, which in the BMA has translated into uncoordinated management of
transport, solid waste and floods. Establishing a BMA co-ordinating body (which is
currently in progress) would be a significant step in addressing these issues, but the
national government’s participation and authority is also critical. At a larger scale, the
transport projects linking Jakarta and Bandung call for more analysis of the
development dynamics linking both cities and potential needs for regional green growth
strategies.
• Financing is a critical implementation lever for urban green growth. The budget of the
City of Bandung is USD 652 per inhabitant in 2016, and has significantly increased over
the past six years, thanks to rising amounts of local own revenue. The budget
nevertheless remains low compared to investment needs for urban green growth. Tax
revenue needs to be increased throughout Indonesia, but also locally, through fiscal
mechanisms that can simultaneously promote green growth, such as charges on the
construction of impermeable surfaces.
• Private investment should also be strongly encouraged. FDI inflows in Indonesia have
been lower than in many other countries of Southeast Asia due to cumbersome
restrictions, but the country has been a pioneer in the region in fostering green
investment banking, by creating sustainability ratings in markets, for instance. Green
investment accounted for USD 1.1 billion in 2013 and has mostly focused on mini-
hydropower and geothermal projects. The local government’s strategy of relying on
public-private partnerships (PPPs) must also be supported by the national government in
all steps of PPP project development.
• International co-operation could be another key source of finance for green growth in
Bandung. Between 2002 and 2014, Indonesia received around USD 80 billion in official
development finance, making it the top recipient in the whole Southeast Asian region.
However, international public finance has made almost no contribution to Bandung’s
green growth. It is thus urgent to reconsider Bandung’s involvement in application
processes and access to official development finance. Bandung could also continue its
efforts to create partnerships with international organisations, focusing on the
development of green growth indicators and building flood resilience.
• The City of Bandung enjoys the advantages of a young population (60% of the
population is below 40). The local government should take advantage of this by
involving further local communities in their efforts to achieve green growth. A first
need is to better identify and organise the support of what is referred to as the 5 000
“communities”, groups of interests/hobbies that are not clearly defined and mobilised.
Solid waste management also presents opportunities. Raising awareness is important,
as citizens do not always fall in line with certain initiatives: for instance, the smart card
for transport may be difficult to introduce successfully, since traditional habits of
bargaining, paying cash, etc. persist.

Key findings (continued)
• Collaboration among a wide range of stakeholder, in particular with the education sector
is a critical asset of Bandung. Bandung should also try to exploit the formidable
opportunities offered by the city’s 78 higher education establishments, as well as the
relatively high proportion of the population with high educational attainment, by
systematising collaboration with these entities. Existing innovation capacities, such as
the Institute for Innovation and Entrepreneurship Development, should also be
supported by the municipality.
4.1. Enhancing co-ordination for green growth between government bodies
Filling in policy framework gaps between the national, provincial and local
governments
The government hierarchy in Indonesia has created a relationship of dependence
between the national government, the provincial governments and the local governments
(cities, regencies and districts). Plans and policies designed in the BMA are influenced to
large extent by policies and regulations issued by higher levels of government, in
particular the national government. This affects not only general development objectives
but also sectoral policies in opportunity areas for green growth (e.g. transport, energy).
The main components of Indonesia’s National Development Plans (RPJPN 2005-2025
and RPJMN, 2015‐2019) are translated at lower levels of government into the West Java
Province Development Plans and into each of the five municipalities of BMA (e.g.
Bandung Development Plans) (Table 4.1). This is a powerful instrument of policy
harmonisation in Indonesia, and a means of boosting cities’ economic and environmental
performance. One of the eight missions of the RPJPN 2005-2025 is the realisation of “a
green and sustainable Indonesia”, acknowledging that “the long-term sustainability of
development will face the challenges of climate change and global warming, which affect
activities and livelihoods”. The RPJMN 2015-2019 aims to create and to increase green
cities development as a part of climate and disaster security, improve governance in
natural resources, reduce greenhouse gas (GHG) emissions, and increase community
resilience to the impact of climate change.
National Development Plans have a binding character, so lower levels of government
must adopt their own development plans under national guidelines. This, however, is not
the case for every national plan, which creates obstacles to the implementation of some
national strategies with potentially high impact for urban green growth, in particular the
national green growth initiatives (Table 4.1). Delivering Green Growth in Indonesia
outlines the national agenda for inclusive and sustainable development in the next 35 years,
to 2050. Launched in 2015, it aims to bring about change by influencing existing policy
documents through the promotion of green policy alternatives. Nonetheless, in the absence
of legal basis and binding targets, risks that it may not be implemented at all levels of
government are great. Neither West Java Province nor the five municipalities of BMA have
adopted a similar green growth agenda. The same applies to the National Action Plan for
Climate Change Adaptation, and the National Energy Master Plan (RUEN). West Java
Province in particular appears to have relatively weak development planning. No transport
master plan is in place, while even Bandung City has developed its own Sustainable

Mobility Plan (Table 4.1). However, the role of the provincial government may play a
larger part after the rearrangement of tasks and functions as regulated by the revised Law
No. 23/2014 on local governance (decentralisation law).
Conversely, the innovative vision of a smart city developed by Bandung City faces
the challenge of policy gaps at higher levels of government. The smart city strategy
developed in the 2015 ICT Master Plan, has no counterpart at the national and
provincial level. The smart city is one of the five pillars of the National Urban
Development Strategy and Policy (KSPPN), but is loosely defined as “the capability of
the city to utilise human resources, social capital and information and communication
technology to support more competitive and sustainable cities in the future”. The lack of a
specific, detailed strategy makes it difficult to attract funds to support smart cities in
Indonesia, and infrastructure-based smart city initiatives (e.g. air pollution monitoring
systems, sensors in rivers, operations centres) are costly. Many smart city projects depend
on the quality of national infrastructure systems: without good broadband connections,
Wi-Fi technology and reliable electricity networks, mobile applications and smart meters
cannot be optimised. Many smart city initiatives depend on national government
regulation: and, as explained in Chapter 3, smart electricity meters can only be introduced
through a national reform that replaces the current metering based on installed capacity of
supply networks with real-time dynamic pricing of energy consumption. Similar issues
emerge in the solid waste sector. The lack of local perspective for solid waste
management makes it difficult for local governments to establish clear strategies and
financial resources to tackle solid waste issues. It also affects the West Java Province,
which does not have the budget to build the new sanitary landfill. The national
government participates financially in the construction of landfills in Indonesia on an ad
hoc basis; no systematic mechanism exists to provide funds for such projects.
Policy gaps between the national, provincial and local governments must be bridged
to harmonise policies, regulations and to ensure funds for implementation. Clear and
binding targets and roadmaps set up and enacted at all levels of government could
maximise the chances of implementation. The recent decentralisation reforms provide
opportunities to allocate more relevant responsibilities to sub-national governments, but
policies must be vertically aligned. The following gaps are particular priorities:
• National green growth and climate change: related plans should be binding and
clearly state their objectives and targets. Similar plans should be developed at the
provincial and local levels and integrate strategies in other sectors (transport,
energy, solid waste, water, smart city) which aim to enhance cities’ economic and
environmental performance. The Ministry of National Development Planning
(Bappenas), the Ministry of Environment and Forestry or the Ministry of Finance
could be the lead institution behind national green growth plans and capacity-
building mechanisms at the local level, through a dedicated green growth agency.
• Energy: although energy networks are managed by the State Electricity Company
Perusahaan Listrik Negara (PLN), cities have a critical role to play in reaching the
national targets of RUEN and of the National Action Plan for Greenhouse Gas
Emissions Reductions (RAN-GRK), by supporting energy efficiency in buildings
and city-based renewable energy (RE) generation. RUEN and RAN-GRK do not
sufficiently delineate the role cities could play in this regard. This creates a lack
of incentives for local governments: the City of Bandung does not have a
department responsible for energy issues. Recognising cities’ role in translating

national objectives to the local level would help meet national targets. It should
also be connected to smart city objectives.
• Solid waste: as noted earlier, a national legal framework would help secure
proper funding. The provincial Solid Waste Management Unit that manages the
provincial landfill Sarimukti and the upcoming Legok Nangka landfill could
obtain clear responsibilities and financial resources with provincial co-ordination.
Such a legal framework would help clarify responsibilities vertically but also
between line ministries, since solid waste policy development is divided among
the Ministry of Public Works and Housing (DPWH), the Ministry of Environment
and Forestry and Bappenas (Chaerul, Fahruroji and Fujiwara, 2014).
• Smart city: Bappenas should develop a separate national smart city plan supporting
the National Urban Development Strategy and Policy (KSPPN), co-ordinating with
other national agencies and ministries (e.g. the State Electricity Company, PNL, and
the Ministry of Finance) to align regulations and financing mechanisms for local
smart city initiatives. This plan should clearly identify connections between
development objectives and plans, including green growth, and smart city strategies.
This will also be a good way of setting up smart city projects systematically in all
Indonesian cities, rather than leaving it to ad hoc initiatives. The Ministry of
Communications and Information Technology in 2016 launched a pilot smart city
project for 15 cities. This links up with the government’s effort to build a digital
economy (Vincentia, 2016).
Table 4.1. Major plans and policy guidelines at the national level and in Bandung
Sector Indonesia West Java Province Bandung City
General development National Long Term Development Plan West Java Regional Long Term Bandung Long Term Development
(RPJPN 2005‐2025) Development Plan 2005-2025 Plan 2005-2025 (RPJPD 2005-2025)
(RPJPD 2005-2025)
National Medium Term Development Plan West Java Regional Medium Term Bandung Development Plans 2014-
(RPJMN, 2015‐2019) Development Plan 2013-2018 2018 (RPJMD 2014-2018)
(RPJMD 2013-2018)
National Urban Development Strategy and n.a. Local Urban Development Strategy
Policy (KSPPN) and Policy (KSPPD) (not yet enacted)
Green growth Delivering Green Growth in Indonesia (2015) n.a. n.a.
and Green Growth Programme (2013)
Climate change (mitigation and National Action Plan to reduce Greenhouse West Java Action Plan for Reducing Bandung Low Carbon Society
adaptation) Gas Emissions (2011) Greenhouse Emissions (RADGRK) Bandung City’s Climate Change
Action Plan
National Action Plan for Climate Change n.a. Urban Climate Resilience Strategy
Adaptation (2012) (not yet formulated)
Land use National Spatial Plan (Rencana Tata Ruang West Java Provincial Spatial Plan
Wilayah Nasional) Bandung Metropolitan Area Spatial Bandung City Spatial Plan
Plan
Energy National Energy Master Plan (RUEN) Provincial Energy Master Plan n.a.
(Rencana Umum Energi
Daerah/RUED)
Environment Environmental Law 32/2009 on Environmental Environmental Management and Environmental Management and
Protection and Management Protection Plan (RPPLH) (not yet Protection Plan (RPPLH) (not yet
enacted) enacted)
Transport Sustainable Urban Transport Programme n.a. Bandung City Transport Master Plan
(NAMASUTRI) Bandung Urban Mobility Project

Table 4.1. Major plans and policy guidelines at the national level and in Bandung (continued)
Solid waste Solid Waste Management Act 18/2008 Bandung City Solid Waste
Presidential Decree on Domestic Solid Waste Management Master Plan
Management and Solid Waste (2012)
Presidential Decree 18/2016 on Waste-Based West Java Solid Waste Management
Power Plants Master Plan
Water supply and sanitation National Policy on Water Supply and n.a.
Environmental Health Bandung City Sanitation Strategy
Presidential Decree 185/2014 on the Bandung City Water Supply Master
Acceleration Drinking Water and Sanitation Plan
Provision
Smart city National Urban Development Strategy and n.a. ICT Master Plan (2015)
Policy (KSPPN) (smart city is one pillar)
Source: Elaboration based on Government of Indonesia and GGGI (2013), Green Growth Programme; Prioritising Investments:
Delivering Green Growth.
Enhancing co-ordination mechanisms between all levels of government

The existence of national and local plans will not be enough to tackle the
implementation questions local governments in the BMA face. Local measures to
design and implement the range of plans required for urban green growth could be
better aligned. The decentralisation process started under the Decentralisation
Act 22/1999 and continued under Act 32/2004 and Act No. 23/2014 on local
governance, transferred to local governments the authority and financial resources for
delivering such basic services as road and wastewater infrastructure. The central
government’s share in infrastructure investment was reduced from around 80% to about
35% (World Bank, 2013). This has been complicated by a lack of co-ordination
between key stakeholders. Local governments in Indonesia do not always have the
capacity to design and implement their assigned infrastructure projects and to manage
natural resources (OECD, 2016a). Decentralisation has not necessarily benefited
electricity and water infrastructure quality and local economic governance (Patunru and
Rahman, 2014).1 In addition, provincial powers are limited: West Java Province, for
instance, only has the power to co-ordinate cross-municipal matters, with no strong
authority over local governments. The national government’s lack of support for
Surabaya’s Mass Rapid Transit (MRT) project, initially resulted in delays and risks of
failure. The national government and municipalities in the BMA must try to avoid a
similar outcome, especially in the City of Bandung, as it develops so many urban
projects where the involvement of the national government will be critical. Local
governments should maintain constant contact with the appropriate national agencies
and ministries to ensure that regulations will not block their initiatives. Meanwhile, the
central government must build capacities at the local level, by increasing resources,
training local government staff and improving e-government tools (Box 4.1)
(OECD, 2013a). One area for attention is developing local capacities for PPPs (see
section on financing urban green growth).
Flood resilience is a serious concern in the context of vertical policy alignment.
Despite national legislation, Bandung is one of the few cities that have not created a
disaster risk management department with a comprehensive approach. The Fire and
Rescue Department is still responsible for this task, and is mainly focused on disaster

response for historical reasons. Bandung should improve co-ordination with Indonesia’s
National Agency for Disaster Management (BNPB), which has had extensive technical
and financial assistance from the donor community in the past decade, to put into
practice data and analytic methods developed for a multi-hazard early-warning system
(EWS) as one of the Command Centre’s main functions (see Chapter 3).
The Green Growth Programme developed for Central Kalimantan with the Global
Green Growth Institute (GGGI) has experimented with some novel strategies in
national-regional co-ordination. One of its three main components is regional
engagement “to support key provincial governments in prioritising and implementing
green growth”. It includes producing and collecting data on green growth, to be co-
ordinated between different levels of government. However, it is not clear how this will
be accomplished, and the role and responsibility of cities is not mentioned. In addition,
GGGI and the national government are only collaborating in two Central Kalimantan
districts, Pulang Pisau and Murung Raya, not in the BMA. This governance strategy
should be expanded to the BMA and other major urban areas in Indonesia.
Box 4.1. Bridging the capacity gaps: Examples from OECD countries
Capacity gaps arise when a local government lacks the human, knowledge-related and/or
infrastructural resources to carry out development projects. OECD examples of capacity building
include involving specialised non-profit organisations and improving the use of e-government
tools. In Greece, as a response to the sovereign debt crisis, a special non-profit organisation was
set up to assist small municipalities (of under 10 000 residents), that did not have the skills to
prepare the four-year action plans required to access EU structural funds. In the United States in
2009, at the height of the financial crisis, distressed areas and small towns were less able to
apply for relevant programmes and secure funding, given the rigorous reporting requirements of
the Recovery Act, because they did not have the trained manpower for intensive contracting and
monitoring. The federal government website supplied e-government tools as a result, to help
recipients of recovery funds meet their quarterly reporting requirements by submitting their
project updates online. Using this technology considerably enhanced the accountability, speed
and transparency of the Recovery Act.
Chicago offers another interesting capacity-building initiative between national and local
governments. The Chicago Metropolitan Agency for Planning (CMAP) does not have formal
authority over land use and zoning, which fall under municipal jurisdiction. The metropolitan
master plan GO TO 2040 is funded at the local level under a technical assistance programme, the
US Department of Housing and Urban Development’s Sustainable Communities Regional
Planning Grant Program. The CMAP initiated the Local Technical Assistance (LTA) Program in
2010. The programme provides assistance to communities across the Chicago metropolitan
region to undertake planning projects that advance the principles of GO TO 2040. The CMAP
has initiated 160 local projects with local governments and non-profit and intergovernmental
organisations to address local issues at the intersection of transport, land use and housing,
including the natural environment, economic growth and community development. The CMAP
announced 25 new LTA projects in October 2014. This fourth wave of projects emphasises
implementation of past plans, such as updates of zoning and regulations, the creation of capital
improvement plans and analysis of municipal review procedures.
Source: OECD (2015a), Governing the City, http://dx.doi.org/10.1787/9789264226500-en.

Institutionalising and perpetuating the new strategies of Bandung City
Co-ordination challenges affecting strategies for green growth (transport, solid,
water, smart city, etc.) must also be tackled within local governments. Mayor Ridwan
Kamil’s initiatives, such as the creation of a new public-private partnership (PPP) team,
the creation of eight advisory groups including citizens (see section on community
engagement), the construction of small Command Centres in every district of Bandung
City to decentralise smart city action, and the push for innovative projects (creative city,
smart city) show the mayor’s resolve to create new governance synergies.
Internal governance can be further improved. The flagship smart city project, the
Bandung Command Centre (compare Chapter 3), is managed by the Information and
Communication Agency but there is not enough involvement of line departments such
as Bappeda, the Provincial Development Planning Agency (Badang Perencana
Pembangunang Daerah), and those in charge of transport and environment issues to
enhance the Centre’s capacity to manage the city. These departments need to share
information more regularly with the Command Centre and to develop joint strategies,
and not simply initiate their own projects. Some departments have developed their own
applications but have not shared them with the Centre. The Police Department, for
instance, does not use the Centre’s video analytics to detect illegal parking because it
has its own system, and the Traffic Department has a similar issue. All departments in
charge of the development plans listed in Table 4.1 must identify potential benefits of
smart city tools for their own objectives and use it in their daily operations (and vice
versa, as shown in Chapter 3). The ICT Master Plan helps provide more consistency for
the smart city vision but needs to be integrated into other strategies. Including smart
city strategies in all other plans will help perpetuate the smart city vision in the long
term, rather than leaving it to sectoral, ad hoc initiatives dependent on the political
agenda.
To encourage such integration of strategies in each local plan, some institutional
innovations may be necessary. Bappeda could develop and lead cross-department task
forces on smart city and green growth as a co-ordinating body for the whole local
administration. These task forces could receive advice directly from a corresponding
advisory group (i.e. green growth, smart city) constituted of private professionals,
researchers and citizens. The smart city advisory body set up by the mayor could become
the advisory body for the smart city taskforce. The environment advisory group to be
created in the near future could be expanded to green growth and become a task force
(see section 4.4).
Co-ordinating action for green growth in the Bandung Metropolitan Area

Urbanisation and economic development tend to be concentrated in the City of
Bandung but are also in evidence in the wider BMA, which includes four other local
governments: Bandung Regency (Kabupaten Bandung), West Bandung Regency
(Kabupaten Bandung Barat), Sumedang Regency and Cimahi City (Kota Cimahi) (see
Figure 1.1). Many people who work in the City of Bandung commute from one of these
surrounding areas (see Chapter 1). Critical urban systems are shared between these
administrative territories. Development and green growth strategies should thus be co-
ordinated across local governments for full impact.
The establishment of a BMA co-ordinating body is under discussion and pending
approval by presidential decree in 2016. Such a metropolitan body would be the first of
its kind outside Jakarta in Indonesia.2 This body, chaired by the governor of West Java

Province, with Bandung City’s mayor as a vice chair, would aim to co-ordinate policies
through BMA-wide master plans, and to facilitate private investment in the region. Such
an executive structure could be helpful because the West Java Province is always
involved in any project mobilising at least two municipalities, as in the case of such
ongoing projects as the Light Rapid Transit (LRT) (see Chapter 2). It could also present
an opportunity for the provincial government to co-ordinate cross-municipal issues in the
BMA.
Co-ordination between BMA local governments has been a challenge. As noted,
decentralisation reforms in Indonesia have empowered cities without creating
incentives for horizontal collaboration, discouraging local governments from pooling
resources with their neighbours.3 Many local government officials are not aware of the
need for co-ordination that decentralisation reforms have created and of their potential
benefits (Firman, 2009). The parochial attitude of many local governments has
hampered services that require cross-border co-operation, including solid waste
management and water supply, in many regions (Firman, 2009). This has exacerbated
the already limited provision of urban services, since the BMA’s local governments are
working at cross purposes. The new metropolitan co-ordinating body will need to
address the following critical horizontal co-ordination issues that affect green growth in
the BMA:
• Traffic congestion: as the BMA’s population has grown, traffic volumes have
risen from 10% to 15% annually (Bandung City, 2014), increasing average
weekday travel times from 30 to 65 minutes, and over an hour on weekends. The
minibus is the central mode of public transit, accounting in 2009 for about 31% of
all motorised trips. Until recently, transport infrastructure in the BMA favoured
the development of roads. The lack of land-use and transport co-ordination has
reinforced inefficient mobility patterns between origins and destinations (Tarigan
et al., 2015). No BMA-wide strategy exists to improve transport systems,
including mass transit, to reduce increasing congestion and externalities of air
pollution, GHG emissions (transport accounts for 60% of CO2 emissions in
Bandung City) and potential losses in productivity.
• Solid waste management: the City of Bandung does not have the appropriate
space in sanitary landfills for collected solid waste. The waste generated already
exceeds current collection and treatment capacities. BMA’s five municipal areas
rely on the same landfill site, which is under great stress and has been repeatedly
scheduled to close, most recently in 2015 (IGES and City of Kawasaki, 2015).
Negotiations on using vacant land in surrounding areas have been unsuccessful
(Tarigan et al., 2015) and further co-operation is needed. Some current green
projects, such as the introduction of biodigesters in Bandung City, will receive
waste from surrounding municipalities and require co-operation on the
conveyance system.
• Flood risk management: rapid land-conversion for real estate development in
the BMA has decreased its ecological function and water absorptive capacities,
increasing the risk of floods (Hudalah and Winarso, 2010). A metropolitan
action plan for flood management could help, for example by creating buffer
zones.
• Water supply: the BMA’s five municipalities use the same ground water aquifer,
which is under heavy pressure from high consumption from residential,

commercial and industrial activities. To ensure a sustainable supply for
households and economic activities, local government units must agree on a water
supply and sanitation plan and harmonise water extraction rules throughout the
BMA. The 2009 study on a drainage master plan recommended metropolitan-
wide watershed management, such as building of dams and water ponds, which
has not so far been implemented.
A key solution would be to set up Medium- and Long-Term Development Plans

for the five municipalities and their 8.5 million residents. A green growth development
plan should also be developed as a pillar strategy for the development of the BMA, and
for national green growth initiatives (see Table 4.1). An alternative would be to
systematically promote the green growth agenda in the main development plans. This
would have to be carried out collaboratively and might initially prove more challenging,
although it could yield higher returns in the long run, in managing natural resources and
the transport sector, since each municipality would help the metropolitan area as a whole,
rather than focusing on its own affairs. A single metropolitan development plan would
facilitate more effective services, guarantee investors better returns, improve
environmental amenities and enhance the quality of life (Box 4.2).
Box 4.2. The benefits of metropolitan thinking
The benefits of metropolitan planning include stronger economic development and

environmental sustainability gains, as well as enhanced urban resilience.
Well-functioning cities require adequate governance structures. The density of opportunity
for contact and exchange that makes cities so dynamic and productive also means that the
actions of households and firms, and the interaction of public policies typically have greater
spill-over effects than in less dense places. Governance structures should take the functional
realities of metropolitan areas into account. Administrative boundaries are often based on
centuries-old borders that do not correspond to patterns of human settlement and economic
activity. Getting administrative structures right typically allows for better outcomes in most
dimensions that make cities function well. These include transport and land-use planning, and
co-ordinating both processes. Land-use regulations need to find the right balance between
protecting existing neighbourhoods and green spaces and allowing new construction. The quality
of public transport usually increases when services are integrated.
Source: OECD (2015b), The Metropolitan Century: Understanding Urbanisation and its Consequences,
http://dx.doi.org/10.1787/9789264228733-en.
The new co-ordinating body should be given extended powers to help co-ordinate
BMA-wide strategies. Comprehensive metropolitan development plans should involve
each local government, and require each to develop its own plan along the guidelines
established by the metropolitan plan. A critical structural deficit of the future BMA co-
ordinating body is the lack of provision for the national government to guide its action.
The input of the national government will be crucial for translating national policy
guidelines at the provincial and local levels, so that the new metropolitan body can
become a platform where local governments can communicate on national policy gaps
(e.g. smart city) and regulations that are obstacles to urban green growth. This would
create a mechanism for the national government to offer technical assistance to the
provincial and local governments (see Box 4.1).

In the medium term, metro-wide authorities to manage critical urban systems should
be created for more coherent infrastructure development in the BMA. Bangkok, where
sectoral authorities manage the transport, water and electricity systems outside the city,
can provide inspiration. The Metropolitan Transport Authority is now implementing a
vast action plan for ten new subway lines extending to the provinces in the Bangkok
Metropolitan Region (OECD, 2015c). BMA could also study the Area Metropolitana
Barcelona (AMA) (Box 4.3) and Metro Vancouver, two successful examples of
metropolitan governance initiatives that have developed a systematic governance
structure. In Malaysia, the Iskandar Regional Development Authority also provides a
model, although implementation issues have yet to be resolved (OECD, 2016b).
Box 4.3. Intermunicipal co-operation in Barcelona

In 1975, Spain’s central government created a Metropolitan Corporation of Barcelona
(Corporación Metropolitana de Barcelona, CMB), covering 27 municipalities. It was dissolved
in 1987, when political tensions escalated between the city of Barcelona and the autonomous
community of Catalonia, after Barcelona was chosen in 1986 to host the 1992 Olympics.
Three sectoral intermunicipal authorities were instead created in 1987:
• a planning authority (Mancomunitat de Municipis de l’Àrea Metropolitana de
Barcelona, MMAMB), covering 31 municipalities (3.1 million people)
• a transport authority (Entitat Metropolitana del Transport, EMT), covering 18
municipalities (2.9 million people)
• an environmental authority (Entitat del Medi Ambient, EMA), covering 33 municipalities
(3.2 million people) in charge of the water network and waste treatment.
Before and after the Olympics, a process of strategic planning began with a focus on the
core city and gradually expanded to the metropolitan scale. Barcelona published its first strategic
plan in 1990, a second in 1994 and the third in 1999, with the three sectoral intermunicipal
authorities. These involved the regional government, all the municipalities, universities, the
private sector, the port and civic organisations. The Association for the Strategic Plan of
Barcelona (Pla Estratègico Metropolità de Barcelona, PEMB), a non-profit organisation created
in 2000 with 300 members of the political, business and social communities, launched the first
Metropolitan Strategic Plan in 2003, covering 36 municipalities. A new plan, Barcelona Visió
2020, was published in 2010 as a continuation of the 2003 plan. Finally, a metropolitan authority
was set up in 2011 by Law 31/2010 of the Parliament of Catalonia. The Àrea Metropolitana de
Barcelona (AMB) includes the three sectoral intermunicipal authorities (the MAAMB, EMT and
EMA). Its Metropolitan Council is composed of the mayors of all 36 municipalities covered
under the strategic plan, including the city of Barcelona. The AMB is in charge of planning,
transport, water, waste treatment, social cohesion and economic development. In 2013, its
budget was around EUR 600 million, composed mainly of subsidies and transfers (56%), fees
and user charges (24%), and own taxes (17%). A specific authority in charge of public transport
(Autoritat del Transport Metropolità, ATM), runs an integrated public transport network with a
single unified fare system.
Source: OECD (2015a), Governing the City, http://dx.doi.org/10.1787/9789264226500-en.
Planning green growth strategies in the wider Jakarta-Bandung metropolitan region

A more ambitious initiative the national government and sub-national governments
could undertake would be to consider development and green growth strategies not only
in the BMA but also in the wider Jakarta-Bandung Metropolitan Region (JBMR).
Bandung is only 150 kilometres south-east of the capital city and has been more closely

linked with it since the Cipularang Toll Road, opened in 2005, reduced commuting time
between the cities from 4 to 4.5 hours to 2 to 2.5 hours (Dorodjatoen, 2009). This has led
not only to population flows but attracted investment along the corridor, in industrial and
housing real estate, where land is cheaper. The Regency of Pruwakarta, located between
Jakarta and Bandung, is undergoing rapid changes. The corridor is now a 150-kilometre
urban belt with a mixture of urban and rural activities. Both cities can benefit, but
negative impacts have included social segregation and uncontrolled land conversion and
resource consumption (Firman, 2008). The construction of the new high-speed rail line
between Jakarta and Bandung, reducing the commute between the two cities to a half-
hour, (see Chapter 2), will further change the region’s economic, environmental and
social dynamics.
The links between the two urban centres have been acknowledged. The construction
of the toll road, the high-speed train and a growing number of bus lines attests to some
willingness to develop transport infrastructure between the cities. In the Java Economic
Corridor, the Jakarta-Bandung relationship is critical and should be given specific
attention. The national government should also address comprehensive perspectives
integrating environmental issues. A priority for such regional strategies is to develop
information on the Jakarta-Bandung Metropolitan Region, including data on the flows of
capital and commodities between both cities, housing development along the corridor
(Dorodjatoen, 2009) and on transport performance, emissions, consumption of natural
resources, etc. Without tackling green growth at the regional scale, infrastructure may be
locked into unsustainable long-term schemes, and should be an urgent consideration for
the national government and BMA local governments.
4.2. Financing green growth in Bandung
Boosting public finance for urban green growth
Enhancing local governments’ financial capacities in the BMA
The City of Bandung’s budget in 2016 was USD 1.6 billion, after a dramatic increase.
In 2010, its nominal budget was only USD 620 million, just over one-third of the amount
in 2016 (Figure 4.1). The real budget also increased sharply, from around
USD 600 billion in 2010 to around USD 1 billion in 2014.4 The total budget is still low
compared to the registered population. The City of Bandung in 2016 only had a budget of
USD 653 per inhabitant, compared to a budget of USD 1 070 per inhabitant in the City of
Bangkok in 2012 (Figure 4.2).5 Low local budgets are common in Indonesia, forcing
local governments to look for alternative funding opportunities (PPPs, grants, etc.).

Figure 4.1. Evolution of the budget of the City of Bandung (2010-16)

USD million
Total budget Central government transfer revenue Local own revenue Other revenue
1 800
1 600
1 400
1 200
1 000
800
600
400
200
0
2010 2011 2012 2013 2014 2015 2016 (expected)
Note: Other revenue includes: tax-sharing revenues with the provincial government; adjustment and special autonomy
fund, and grant revenues from provincial and other governments.
Figure 4.2. Budget per inhabitant in the cities of Bandung and Bangkok
USD, PPP
1 200
1 000
800
600
400
200
0
City of Bandung (2016) City of Bangkok (2012)
Source: OECD (2015c), Green Growth in Bangkok, http://dx.doi.org/10.1787/9789264237087-en. Bandung
City (2016), “Answers to the OECD case study questionnaire”, internal document, unpublished.
The City of Bandung’s budget can be broken down into three categories: locally raised
revenue accounts for 43.3% of the total budget, transfers from the national government
account for 44.1% and other revenues account for 12.6% (Figure 4.3). Locally raised
revenue has risen sharply in recent years. In 2010, it only accounted for 16.7%, while the
share of transfer revenues accounted for 78.2% (Figure 4.1). This is mainly due to the
Decentralisation Act 22/1999, updated later as Act No. 32/2004 and more recently
Act No. 28/2009 on Local Taxes and Charges and Act No. 23/2014 on local governance,
which included fiscal decentralisation and granted local governments the right to manage

local finance. Property taxes and land acquisition fees have been delegated to local
governments. Bandung City performs much better than most Indonesian cities: from 2008
to 2013, own-source revenues increased from 9% to 13% on average in Indonesian
municipalities (Patunru and Rahman, 2014). The proportion of total tax revenue collected
by local governments in Indonesia remains low, at around 10% in 2013 (compared to Japan,
for example, where local governments collect almost 25% of total revenue), although this
share has been steadily increasing since the decentralisation reforms. It is now almost
similar to the OECD average in unitary countries, calculated at 12% in 2012 (Table 4.2).6
Table 4.2. Attribution of tax revenues to subsectors of general government as a percentage of total tax revenue
Central government State or regional government Local government Social security funds
2000 2010 2013 2000 2010 2013 2000 2010 2013 2000 2010 2013
Federal countries
Malaysia 94.7 94.3 95.2 .. .. .. 3.4 4.0 3.3 1.9 1.7 1.5
OECD 56.5 53.8 54.5 15.3 16.3 16.5 6.9 7.9 7.6 21.1 21.8 21.3
Unitary countries
Indonesia 96.8 92.8 90.4 .. .. .. 3.2 7.2 9.6 .. .. ..
Philippines 81.5 82.2 82.2 .. .. .. 5.3 5.2 5.2 13.2 12.7 12.7
Japan 38.7 33.0 33.7 .. .. .. 26.1 25.9 24.7 35.2 41.1 41.6
Korea 68.2 60.4 58.2 .. .. .. 15.1 16.7 15.5 16.7 22.8 26.3
OECD 66.5 63.4 62.9 .. .. .. 11.0 11.9 12.0 22.3 24.4 24.8
Source: OECD (2015d), "Tax Revenue Trends 1990-2013", in Revenue Statistics in Asian Countries 2015: Trends in Indonesia,
Malaysia and the Philippines, http://dx.doi.org/10.1787/9789264234277-3-en.
Figure 4.3. Revenue of the City of Bandung by source

2016
Adjustment and special Grant revenues from provincial
autonomy fund and other governments
USD 10 million USD 4 million
1% 0.2%
Tax sharing revenues with
provincial government
USD 189 million
12%
Special allocation fund Local tax revenue

13% 34%
General allocation fund

USD 425 million
26%
Local retribution revenues
USD 52 million
3%
Dividend from local government

investment
Other local government revenue USD 5 million
Tax/non-tax sharing fund 0.3%
5% 5%
Note: Dark-blue items refer to own revenue of the City of Bandung. Light-grey items refer to transfer revenue from
the central government, and hashed items refer to other sources of revenue.

Despite the recent positive changes in the City of Bandung’s budget capacity, room
remains to increase the local budget streams to promote urban green growth. This would
help to raise tax revenues in the country, which in 2013 only represented 13% of
Indonesia’s GDP. This share is around 34% on average in OECD countries (OECD, 2015d).
Both the local and the national governments have a role to play, helping to boost investment.
At the local level, the local governments in the BMA should work to increase the amount of
locally raised revenue. Revenues from tariffs and fees remain very low, while this accounts
for 15.2% of sub-national government revenue in OECD countries (OECD, 2015e). Raising
more revenues from these two sources would help finance urban green growth, and could
be an opportunity to shape behaviour through fiscal policy instruments and to make green
infrastructure systems financially sustainable. Taxes on new impermeable surfaces could be
a tool to guide development more sustainably, discouraging developers from building in
sensitive areas or to recover some of the cost of constructing flood-resilient infrastructure.
Many cities and states including Maryland and Illinois in the United States of America are
good examples of areas using the taxes on impermeable surfaces. A more systematic use of
wastewater treatment, public transport and water supply tariffs and charges could help to
raise more revenue while increasing the sustainability of green utility systems. Parking
taxes and charges offer one such instance. The City of Bandung is considering increasing
parking fees to discourage car use. This could be combined with West Java Province’s
current policy of reserving some parking slots for energy-efficient cars identified with a
blue sticker. These could be subject to lower parking charges, through a control system at
the entrance of parking areas, and in future, through smart cards that would recognise the
blue stickers.
Increasing national government financial support for local governments

The national government plays a critical role in local finance in Indonesia. It still
controls the main strategic sources of revenue, such as income and value-added taxes,
while the local governments can only manage secondary streams of revenue, such as
advertisement and restaurant taxes (Ritonga et al., 2012). In 2015, regencies and cities
accounted for 30% of government expenditures (all levels of government included) but
for only 4% of government revenues. The central government accounted for 57% of
government expenditures and 89% of government revenues (OECD, 2016a). The
Ministry of Finance is transferring part of the national budget to all local governments.
The General Allocation Fund (DAU) and the Special Allocation Fund (DAK)
accounted for 51% and 5%, respectively, of regency and city revenues in 2015
(OECD, 2016a); transfers also dramatically increased, from USD 9.1 billion in 2001 to
USD 43.7 billion in 2011 (Ritonga et al., 2012). In Bandung City, 44% of total revenue in
2016 is expected to come in the form of transfers from the national government. A
common problem with such automatic transfers is the way they are calculated. The
General Allocation Fund is partly allocated based on the registered population in the local
governments and does not take into account unregistered population, which is high in the
City of Bandung. This reduces the funds for developing infrastructure that can ensure all
residents’ well-being. Grants, which are project-specific and include grants for education
programmes, are another stream of revenue from the national government. Local
governments have little autonomy in spending such grants (OECD, 2010).
The central government could use these (general or special) allocation funds more
effectively for green growth. The Special Allocation Fund (DAK) is supposed to deliver

earmarked funding to subnational governments, but in practice, the allocation remains quite
general, as it is with the General Allocation Fund (OECD, 2016a). Increasing the volume of
DAK and targeting green growth objectives would only be effective if the national
government adopts a clearer national green growth strategy that clearly specifies local
governments’ role in line with national strategies. This would encourage local governments
to spend more on green growth. Most of the City of Bandung’s expenditures in 2014 were
on employee salaries (49.5%).7 Environmental projects accounted for only 3% of direct
expenditure and it is difficult to know how much other direct expenditure, such as public
works, contributed to green growth. Additional low-carbon infrastructure financing
mechanisms could also be created at the national level. In Sweden, a national programme
(KLIMP) provides local governments of all sizes financial support to manage GHG
emissions and adapt to climate change. Local governments can apply for national subsidies
for local investment to reduce emissions and improve energy efficiency and independence.
Funded municipal activities include removing disincentives for individuals to reduce
emissions, such as eliminating free parking, and subsidising the cost of retrofitting filling
stations for pumps that supply renewable biofuels (Corfee-Morlot et al., 2009). The local
governments in the BMA could support metropolitan-wide forms of financial management
if they are developed in the future. Specific financial channels in key areas for green growth
could be added to ensure that the appropriate policies are carried out.
Finally, the central government can play an important role in facilitating Bandung’s
access to large loans from public banks, especially given that Bandung’s financial
capacities have substantially increased in the past few years. The recent merger by the
Ministry of Finance of the state-owned financial firms PT Sarana Multi-Infrastruktur
(PT-SMI) and Perusahaan Investasi Pemerintah (PIP), to become the Indonesia
Development Bank in 2017, with a capital of IDR 24.4 trillion, is an opportunity for
Bandung City and local governments in the BMA to borrow from public banks. In
addition to the increased capital, the IDB will be able to finance projects for 25 years
(rather than the current 5 to 10 years).8
Efforts to attract private investment should be stepped up
Private investment in the BMA is key in maximising financial opportunities for green
growth. The public administration will raise financial capacities at different government
levels, but private sector participation will be critical in meeting the high cost of
infrastructure. This would include foreign direct investment (FDI), specific green
investment banking and PPP.
FDI regulations should be aligned with green growth
FDI, an important source of private external finance, has been significantly lower in
Indonesia than in many other countries in Southeast Asia. It accounted for only 0.88% of
GDP in the period 1981-2013, as compared with the average share in the region of 2.81%
of GDP. More recently, Indonesia is relatively under-performing (Figure 4.4). FDI
inflows have been lower than might be expected from Indonesia’s size and population
(Lipsey and Sjöholm, 2011). Manufacturing is by far the greatest sector in terms of FDI
inflows, with 55.3% of total FDI in 2013, followed by service (22.1%), mining (16.8%)
and crops and plantation (5.6%) (UNEP, 2015).

Figure 4.4. Foreign direct investment, net inflows (% of GDP)

1981-2013
Indonesia Malaysia Philippines Thailand Vietnam
14
12
10
-2
-4
Source: World Bank (2015), World Development Indicators,

http://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS (accessed 2 April 2016).
Indonesia’s difficulties in attracting FDI can partly be explained by disincentives such

as limited infrastructure, and complicated and time-consuming investment procedures
(Salim, 2014). One major constraint for foreign investors is that the Foreign Investment
Law requires foreign investment to be approved by the Indonesia Investment Co-ordinating
Board (Badan Kordinasi Penanaman Modal, BKPM) and that the share of foreign
ownership is restricted in transport services, energy and mineral resources, agriculture,
forestry, maritime and fisheries, finance and banking, and education (UNEP, 2015). These
include sectors for green investment and may limit opportunities for green growth projects
in Bandung and elsewhere. The government might consider loosening such restrictions.
Sustainability standards to guide foreign investors and the decisions of the Board should
also be created to ensure that FDI contributes to green growth.
National efforts to encourage green finance should be continued and developed

at the local level
Green finance is not yet robust in Indonesia, but recent reforms may increase its
contribution to development in future. Only 1.4% of total lending by 29 major banks in
Indonesia was considered to be “green” in 2013, according to a Bank Indonesia survey
(UNEP, 2015).9 This accounted for about USD 1 billion. The 2014 Asia Sustainability
Investment Review estimated that sustainable investments in Indonesia’s capital markets
totalled USD 1.14 billion at the end of 2013 (UNEP, 2015). This is low in comparison to
total banking activities, but not negligible. The main sectors benefiting from green

financing in 2012 were mini-hydropower (26.1% of green financing), geothermal
(25.7%), environmentally efficient machinery (19.6%) and sustainable agriculture
(19.5%) (Figure 4.5).
Figure 4.5. Distribution of green financing by project in Indonesia

2012
30%
26.1% 25.7%
25%
19.6% 19.5%
20%
15%
10%
4.6%
5%
2.2% 2.4%
0%
Mini-hydro Geothermal Environmentally Sustainable Eco-label products Other renewable Other
efficient machines agriculture energy
Source: UNEP (2015), “Towards a Sustainable Financing System in Indonesia”, in partnership with
IFC and AsRIA.
The government of Indonesia has made remarkable efforts to design innovations in

financial markets to encourage green lending and investment, which can be expected to
increase significantly in the coming years. One of the innovative flagship policies was the
creation of the SRI-KEHATI Index and the SRI-KEHATI-ETF, sustainability ratings for
the stock market. The Ministry of Finance is also considering green weighting for capital
requirements, which could significantly encourage green finance (UNEP, 2015). Another
promising policy is the development of the Roadmap for Sustainable Finance in
Indonesia by the Ministry of Finance, which may include a binding regulatory framework
for green finance, including the compulsory environmental and social management
systems and reporting in both capital and stock markets (UNEP, 2015). The Ministry of
Finance should include a regulatory framework, as many banks still do not consider
developing green lending capacities a priority (UNEP, 2015) and all financing institutions
should be left on an equal footing, so as not to leave individual initiatives suffering from
competition with other institutions.
The Financial Services Authority (OJK) should also continue developing incentives
for green investment, such as differentiated reserve requirements with lower required
reserve rates for green assets and differentiated capital requirements for green lending
(UNEP, 2015). OJK should also assess and encourage green financing in other areas of
opportunities for green growth, in particular transport, water resilience and solid waste
management, which do not feature in these surveys (Figure 4.7). Another area of

opportunity for green finance is the Islamic Bank, which has great potential given
Indonesia’s large Muslim population and the bank’s growing capital (OJK, 2015). Similar
sustainability criteria could be incorporated in the bank’s regulations to leverage
investments in green infrastructure and green growth projects.
At the municipal level, the City of Bandung could encourage green bonds to attract
institutional investors. The BMA does not at present issue municipal bonds, but could
easily do so with the support of the national government and/or international financial
institutions. The World Bank Group has supported municipalities to issue green bonds
close to USD 12 billion since its inception in 2008, and its growth is accelerating rapidly.
Green bonds could be set up jointly by local governments in the BMA and the national
government. This instrument could help attract private investors and alleviate the actual
or perceived financial risks associated with green investment. The city of Gothenburg
(Sweden), with the support of the World Bank, has issued green bonds since 2013 to
increase finance for climate change mitigation and adaptation projects and other
environment-related activities (Climate Bonds Initiative, 2014.). In Bandung, this strategy
could be explored in energy use and transport, where private investors are not yet
effectively involved. Co-operation and co-ordinated action with the national government
would be highly advantageous. The Roadmap for Sustainable Finance in Indonesia
should include regulatory reforms allowing local governments to issue green bonds, so
that local governments do not face legal obstacles in doing so.
Enhancing co-ordination with the national government to set up public-private

partnerships
PPPs (Kerjasama Pemerintah dan Swasta, KPS) represent another opportunity to
attract private finance to build green infrastructure. They were introduced in the 1990s to
finance toll roads (AFD, 2014). By the turn of the 2010 decade, the government of
Indonesia had made PPP a strategic instrument for rail construction and power generation.
Complex issues such as defining the PPP policy and legal framework, identifying a
project pipeline, setting up PPP expertise units and developing concepts to guide projects
have been undertaken at the national level (OECD, 2012). The number of PPPs in 2010-
12 was highest in the West Java Province, mainly in the form of concessions. In 2010 and
2011, 17 PPP infrastructure projects were registered in this province, against 13 in 2012.
By contrast, DKI Jakarta – which has the second-highest number in terms of PPP
development – developed only 11 PPP infrastructure projects in 2010 and 2011, and 2 in
2012 (Figure 4.6). Most of the existing PPP projects have been undertaken by the national
government, although Bappenas has been promoting PPP to sub-national authorities
(OECD, 2012). Only two cities in Indonesia have in fact successfully implemented PPPs:
Tangerang (a water supply project) and Makassar (project on sewerage). In Bandung, the
mayor has erected PPP projects as a new approach to financing urban development. A list
of 91 projects, requiring total capital of around USD 6 billion, has been prepared by the
current local administration. This strategy aims to overcome the lack of local government
budget funds. The Bandung Light Rail Transit/LRT and the Integrated Gedebage
Multipurpose Terminal (Railway) are two PPPs under development.

Figure 4.6. Number of PPP infrastructure projects in Indonesia, by province
2010-12
2010 2011 2012
18
16
14
12
10
Source: OECD (2013b), “The number of PPP infrastructure projects in Indonesia by province”, in Southeast Asian
Economic Outlook 2013: With Perspectives on China and India, http://dx.doi.org/10.1787/888932774205.
Effective PPPs can deliver value for money, but require complex procurement,
administrative and legal procedures. Local governments including Bandung City and
other municipalities of the BMA critically lack the capacity to implement PPPs
effectively. Problems associated with attempts to lead PPPs by local governments were
illustrated in Surabaya City. It took the local government several years to complete a
feasibility study and to make the proposal commercially viable, even with the support of a
consultant agency.10 Assessing the value for money of a PPP project – compared to a
traditional public procurement scenario – may be difficult, as it results from a
combination of factors such as risk transfer, output-base specifications, performance
measurement and incentives, competition in and for the market, private sector
management expertise and the benefits for end users and society as a whole (OECD,
2012). The lack of observed impact and non-regulated tariffs, which imply low cost-
recovery for utility infrastructure – and a poor return for private investors – are two major
obstacles.
PPP process has also been complicated by a lack of co-ordination between
government contracting agencies (GCAs) and the two main ministries involved in PPP
procedures: MoF and Bappenas. GCAs, including subnational authorities, develop
projects in isolation, and because the proposals may fall short of MoF requirements and
fail to qualify for government guarantee and fiscal support, they are often abandoned or
delayed. In 2015, the PPP unit was established under MoF, to tackle the lack of co-
ordination at the national level between MoF and Bappenas, both of which have

responsibilities in this regard.11 While it is too early to assess the effectiveness of this
national PPP unit, it could substantially improve co-ordination between the national
ministries and subnational GCAs.
The national PPP unit could do more than co-ordination. It could help increase local
capacities and improve local procedures for PPPs. Local governments need support from
the inception of the PPP projects (i.e. the planning phase) through to the feasibility study,
tender preparation, bidding and contract signing (OECD, 2012), complying with specific
Presidential Regulations.12 The support should go further to cover project implementation
and operation. Furthermore, the national PPP unit could finance local feasibility studies
and bidding processes undertaken by sub-national authorities. Currently no such
assistance is given to sub-national authorities by the national ministries.
4.3. International co-operation for green growth in Bandung
Official development assistance to Indonesia could help Bandung
Bandung receives almost no official development finance

International co-operation plays a critical role in Indonesia’s development. This
includes official development finance, in particular Official Development Assistance
(ODA) and non-concessional other official flows (OOF), such as the Clean Technology
Fund (CTF). From 2002 to 2014, Indonesia received around USD 80 billion in official
development finance,13 more than any other country in Southeast Asia. It received about
two and a half times the amount committed to the Philippines in the period, and more
than eight times the amount received by Thailand (Figure 4.7).
Figure 4.7. Total official development finance committed to selected ASEAN countries (USD billion)
Constant 2013 prices, 2002-14
OOF ODA
90
80
70
60
50
40
30
20
10
0
Indonesia Vietnam Philippines Myanmar Cambodia Thailand Laos Malaysia
Note: This figure includes both bilateral and multilateral ODA. OOF stands for other official flows. ODA means Official
development assistance.
Source: OECD (2016c), “Aid activities targeting Global Environmental Objectives”, DAC Creditor Reporting System
(database), https://stats.oecd.org/Index.aspx?DataSetCode=RIOMARKERS (accessed 23 November 2015).

Of official development finance committed to Indonesia, only 17.2%
(USD 13.8 billion) benefits (urban) green growth, involving 3 388 projects which target
the environment, climate change mitigation, climate change adaption, biodiversity and
desertification (i.e. the objectives set by the Rio Conventions).14 Of these, 162 projects
totalling USD 3.4 billion (i.e. 25% of total environment-related official development
finance) were committed to Indonesian cities, only USD 10 million of which was
allocated to the city of Bandung (i.e. slightly less than 0.1% of all environment-related
funds committed to Indonesia) (Figure 4.8).15 The government of Korea is the largest
contributor (around USD 8 million) through a project on water supply and a project on
flood management. International public finance has made almost no contribution to
Bandung’s green growth. By contrast, Bangkok received USD 2.3 billion for
environment-related projects in the period (OECD, 2015c), and the city of Hai Phong
USD 500 million (OECD, 2016d), despite its much smaller population. Current projects
include a study for the reorganisation of Bandung central railway station, financed by
AFD and led by a joint venture between Systra and Arep consulting firms. The study
aims to improve the station’s accessibility and to explore the potential for an intermodal
development around it. AFD also aims to finance a low-carbon initiative.
Official development finance for Indonesia, by comparison with other countries of
Southeast Asia, involves a high number of projects for geothermal energy, gas pipelines
and hydro-electric power plants. These accounted for nearly USD 1.6 billion between
2002 and 2014 (i.e. 12.3% of total official development finance). Indonesia has rich
natural resources and high potential for RE production and climate change mitigation.
Such activities, however, cannot be categorised as “urban” or “rural”, as they benefit
both. Many official development activities cannot be categorised in Indonesia, as shown
in Figure 4.8.16

Figure 4.8. Number of official development activities and funding for urban and rural areas in Indonesia for
environmental purposes (including Rio Conventions) (2002-14)
USD billion, constant 2013 prices
Number of projects Commitments
Bandung Other cities Bandung

0% 5% 1%
10 164 projects USD 0.2
projects billion
Other cities
25%
USD 3.4
billion
Rural areas
38%
1 285
Unspecified projects Rural areas
57% Unspecified 11%
1 900 63% USD 1.5
projects USD 8.7 billion
billion
Source: OECD (2016c), “Aid activities targeting Global Environmental Objectives”, DAC Creditor Reporting System
(database), https://stats.oecd.org/Index.aspx?DataSetCode=RIOMARKERS (accessed 23 November 2015).
Developing national-local channels and direct local access to official

development finance
These trends shed light on the need to improve Bandung’s access to official
development finance for urban green growth. The major obstacle is the inability of local
government units (LGUs) to contract direct loans from foreign donors. To obtain
additional funding, local governments are allowed to borrow from the central
government, other local governments, domestic banks or financial institutions, and from
the public through municipal bonds (Law 33/2004). LGUs can receive donor support, but
only with a two-step loan (or Sub-Loan Agreement, SLA), which is complicated because
it needs central government approval.
Involving the local government in application processes or project discussions early
on could be an efficient strategy for ensuring that official development finance activities
target cities’ needs, and Bandung’s in particular. This will require co-operation with the
national government, which decides how to apply to grants and which proposals to
approve. Local authorities and the national government together need to propose
concrete, well-designed projects and programmes to international funds and donor
organisations, to optimise Bandung’s chances of getting financial and technical support
for green growth.
Allowing LGUs – especially in a city like Bandung whose financial health is robust –
to contract loans directly should be considered by the central government. One potential

option for Bandung would be to set up a local investment fund for urban development.
It could be an opportunity to attract official development finance in the city but also to
give the local government a larger role in co-ordinating international finance for green
growth. Such mechanisms have been set up in Ho Chi Minh City and a few other cities in
Viet Nam, such as Can Tho and Da Nang. The French Development Agency has been the
main international donor providing support to these local investment funds, and has
channelled funds for projects in the health, education, housing, urban development and
environment sectors. 17 For some projects, such local investment funds will need to
collaborate with the national government. Regional railway development (over which the
national government has authority) largely falls under the authority of the state, but it has
a strong local dimension. In solid waste and flood resilience, the local government is less
dependent on the national government, and local investment funds could be convenient.
Bandung’s efforts to mobilise international partners for urban green growth

Bandung should also develop partnerships with international organisations for urban
green growth. The importance of such partnerships is already well-recognised by the local
government. The Bandung Creative City Forum (BCCF) is an important source of
international promotion and networking, focusing on creative thinking, arts and design by
youth. In 2013, it held a workshop with international experts on how youth can boost
sustainable urban mobility. 18 The City of Bandung has been particularly active in
reaching out to international partners to develop smart city projects. IBM has been a
privileged partner in developing the Command Centre. International co-operation will be
important in scaling up smart city tools and diffusing digital technologies in an emerging
market. Systematic collaboration with international partners and target sectors can help
encourage green growth, in such sectors as energy, solid waste and water management.
The number of projects with potential for green growth involving international partners is
relatively low, although it is likely to grow thanks to the current efforts of the
administration (Table 4.3). In the smart city sector, global utility companies such as Cisco
and Siemens could help support the city’s efforts to address urgent green growth issues,
such as water, energy, solid waste management and transport, where smart city tools are
developing quickly. They could also be instrumental in increasing the quality of IT and
engineering curricula in local universities, and diffuse formal and informal IT skills to the
local population, to make the smart city vision more inclusive.
Table 4.3. Urban green growth projects in Bandung involving international partners
Name of partner Description of the project

IBM Development of the Bandung Command Centre
Alliander Development of smart city tools
AFD Construction of a Light rail transit (in partnership with the central government)
Development of a co-benefit action plan for the transport sector
IGES
Feasibility Study for Realising Low-Carbon Society (with Kawasaki City)
Memorandum of Understanding (MoU) between Kawasaki City and Bandung City
Kawasaki City (concluded in February 2016 at the International Eco-tech Fair held in Kawasaki)
Feasibility Study for Realising a Low Carbon Society (with IGES)
ICLEI Study on Bandung’s resilience
At the national level, the Global Green Growth Institute (GGGI) has partnered with
the government of Indonesia to develop a Green Growth Programme incorporating green
growth into existing planning and investment schemes. One of the programme’s
components is to encourage the collection of green growth indicators at different levels of
government (Government of Indonesia and GGGI, 2013). The programme does not

specify how this will be implemented. Partnerships between GGGI and the City of
Bandung could be created (or with another international organisation to support GGGI’s
initiative), to develop local capacity to produce and collect green growth indicators and
track progress in the city.
Numerous potentially useful initiatives could benefit Bandung, and the local
government should pursue its effort to reach out to the international community. In terms
of flood resilience, the USAID-ADB-DFID-Rockefeller Foundation Trust Fund is now
part of the foundation’s Urban Climate Change Resilience Partnership, which is designed
to leverage financing, including an additional USD 1 billion in public and private
investment, to scale up climate change resilience for 25 cities in Asia. Another initiative
of C40 Cities could be of interest for the solid waste management issues Bandung has
been facing: C40 Cities recently launched an initiative for city officials in different
countries to communicate on waste-management issues using the WhatsApp mobile chat
application. Most of the local government staff in the BMA already use this application,
rather than e-mail, to communicate and to organise work groups, and could promote
sharing of best practices in the solid waste management sector. Through C40 Cities, city
administrators could be connected with officials and experts from other Asian and non-
Asian cities, to discuss solutions for current problems in BMA. If successful, C40 Cities
should expand this mechanism to other sectors related to green growth (e.g. transport,
water and energy).
4.4. Engaging and collaborating with local stakeholders
Giving shape and impact to Indonesia and Bandung’s community culture

Bandung and Indonesia benefit from a strong community culture. Many aspects of
life are managed within local communities, which tend to be informal and loosely self-
regulated. Local governments have increasingly acknowledged the potential of
community involvement. The city of Surabaya offers a celebrated example of successful
community mobilisation for urban green growth. The city is a pioneer in community-
based solid waste management and is now one of the cleanest in Indonesia, thanks to an
ambitious programme that since 2010, has involved residents in municipal efforts to
collect and sort out solid waste. In Bandung, local government has recognised the benefit
of local community participation in governance. Its mayor has tried to build a
collaborative society where community-based development is seen as a process of
internal decentralisation to manage the city more effectively (Bandung City, 2015). The
following community engagement initiatives are particularly remarkable:
• The mayor has created eight advisory groups on eight different topics (smart city,
public policy, law, creative economy, environment, green building, cultural
heritage, arts), mainly constituted by citizens of Bandung City. This is an
innovative approach to encourage public participation and raise public awareness
on critical issues.
• Bandung has some community-based solid waste management systems. The city
plans to set up biodigesters – waste decomposition machines – in addition to
existing waste composting facilities, as residents are aware of the need for organic
waste services. The organic fertilizer from biodigesters has been used for urban
farming and stocks for citizens. Informal waste pickers also play an important role
in the solid waste collection process (Tarigan et al., 2015). In April 2015, the City

called for volunteers to help clean up Asia Afrika Street in preparation for the
60th Asia-Africa Conference commemoration. Thousands of residents
participated in the collection process, demonstrating the potential for the
community to be mobilised by local government. The Pick Up the Trash
Movement launched by the municipality in June 2014 encourages garbage
collection three days a week (Bandung City, 2015), and the Clean Cikapundung
River programme launched in 2010 encourages community participation in
clearing solid waste from river banks and reintroducing fingerlings to restore river
ecosystems.
• The City of Bandung recently set up an innovative system of “biopores” to build

the city’s resilience to flash floods. These are community-based or household-
based holes dug in the ground to absorb water in heavy rain, reducing run-off and
flood risk. Organic waste can be added to the hole to make compost (see Chapter
2). The city already has 350 biopores and intends to install 120 in each of the
9 561 neighbourhood units, or Rukun Tetangga (RT) of the city (Tarigan et al.,
2015).
• An urban farming programme has been started in every district, at the mayor’s
initiative, to increase food security and encourage community participation in the
city’s sustainability. Increasing the amounts of green/agricultural spaces in the
city can also have positive benefits on flood resilience, by increasing the urban
environment’s absorption capacity. Meanwhile, the Bandung Agri-Market, held
every month, promotes locally grown food.
• Festivals are another example of community-building. At the Angklung and

Culinary Night festivals, residents and the municipality celebrate their local
identity (Bandung City, 2015).
Efforts to mobilise local communities should be continued. The Board of National

Unity and Community Empowerment (Badan Kesatuan bangsa dan Pemberdayaan
Masyarakat) could be the lead agency, working closely with other departments that can
have an impact on urban green growth. Identifying and organising such communities
would be a first step. City administrators often speak of the importance of local
communities, but it is not clear what they are referring to. In its vision to build a
collaborative society, the City of Bandung mentions the city’s 5 000 communities,
without specifying what they are (people often vaguely refer to them as loose groups of
people united by family ties, urban areas and social activities or interests). The
municipality should draw up lists of the main communities, and identify those that could
support green growth objectives by geographical location or area of opportunity.
One new institutional initiative is the Forum on Waste Management, for
practitioners, NGOs, academics and government staff. Thanks to recent support from the
local government, this has become a large platform for knowledge exchange and even
policy input for the local Waste Management Master Plan. The City of Bandung could
increase its governance capacity by expanding this mechanism to other critical urban
sectors, in particular transport and disaster risk management, and integrate relevant
communities in the discussions. Also, it should make more efforts to reach out to NGOs
working with the urban poor – as these organisations do not work much in co-operation
with the local government – to give voice to the low-income communities and promote
social inclusion. It will also be important to make sure local communities are involved in

the Innovation Programme for Regional Development and Empowerment Bandung

City (Program Inovasi Pembangunan dan Pemberdayaan Kewilayahan Kota Bandung,
PIPPK), whose goal is to allow district-based institutions to make project proposals for
their development (Bandung City, 2015). This could be supported by smart city tools, and
the main and decentralised Command Centres could serve as databases for community
practices and proposals for green growth (see Chapter 3).
Surabaya offers a useful model for solid waste management. Communities have been
more formally organised around community leaders, who are contact points for the
municipality, and who help to steer community efforts towards solid waste management
goals. To some extent, the contribution of informal waste pickers can be formalised.
Their role in recovering waste has not been well recognised in Bandung (Damanhari,
Wahyu and Tri Padmi, 2009), although the Environmental Management Agency of
Bandung City is considering strategies for collaborating with them. Around 800
scavengers, mostly volunteers organised by local communities and universities, support
the waste collection system, bringing waste to the 151 transfer stations scattered
throughout the BMA. No benefit mechanism is in place, offering no incentive to ensure
large-scale community support in the long term. The City of Bandung could consider
developing initiatives like the Zero-Baht Shop in Bangkok, which encourages informal
activities by giving scavengers direct incentives like food and social benefits (Box 4.4).
This would not only support waste collection but inclusive development.
Box 4.4. Zero-Baht shop: Community-based recycling in Thailand

A “Zero-Baht shop” is a cash-free barter system that allows the trade of recycled materials
in communities for necessities, goods and services.
The system works as follows: i) community members collect recyclables; ii) they separate
the collected recyclables by type and bring them to a “Zero-Baht shop”; iii) the recyclables are
weighed; iv) the community members receive an invoice from a member of the shop’s staff;
v) they bring the invoice to the shop and exchange it for goods and services of the same value, or
deposit it into a “bank” as savings; vi) the collected recyclables are sold to junk collectors;
vii) the income is used to create a welfare fund and provide services to community members.
Through the system, low-income community members are officially registered as formal
garbage collectors and separated from informal waste pickers. They are also able to receive
some social support (such as medical care, support for funeral services, etc.) as community
members. Overall, the system helps to formalise the informal sector, to promote recycling and
alleviate poverty.
In 2006, the Thailand Institute of Packaging and Recycling Management for Sustainable
Environment (TIPMSE) established, with the Federation of Thai Industries (FTI), the concept
and continued expansion of the network of Zero-Baht shops. They can send a consultant to
communities and organisations interested in the establishment of Zero-Baht shops. As of 2013,
12 Zero-Baht shops were in operation in Thailand. The TIPMSE also organised the “Zero-Baht
Shop Mobile,” as a showcase of the project to communities, educational institutes and
governmental agencies.
Source: TIPMSE (2014), presentation at the Bangkok Knowledge Sharing Workshop on Urban Green
Growth in Dynamic Asia, 6-7 August, Bangkok.

Raising public awareness to shift behaviours to support local green growth
initiatives
Raising public awareness of urban green growth and how the city plans to achieve it
is another critical strategy at the community level. Creating a segregated lane for a Bus
Rapid Transit (BRT) may face opposition from the residents, because they might see this
as a further cause of traffic congestion. Communicating about the benefits of public
transport for the city in the short and long term, will help make sure they participate with
the municipality in the shift towards green growth. In Bangkok, the lack of public
awareness of the benefits of the BRT was a major reason for the failure of the programme
(OECD, 2015c). Raising awareness of the angkot associations will help require higher
service quality and efficiency and to encourage sustainable consumption patterns to
promote Bandung’s smart city vision. Introducing a smart card system for transport
(including parking) and other services will require public awareness campaigns, as people
still prefer to rely on traditional habits (e.g. bargaining, payment in cash etc.). For energy
savings, the City of Bandung could study the example of the Bangkok Metropolitan
Administration, which partnered with businesses in 2012 to teach students in 16 schools
of the city how to reduce energy consumption, and which also created youth camps on the
subject in 2008-09. Raising awareness within private companies could be an efficient way
to promote energy savings (and other environmental objectives) not only at the office but
also at home. This was exemplified in a study undertaken in Japan after the Great Tohoku
Earthquake of March 2011.
The City of Bandung could leverage the mayor’s current awareness programme to
promote green growth. Under this initiative, each day of the week was given a specific
topic (in order of the days of the week: free travel on public buses for school children,
non-smoking, Sundanese, English, bicycle) and every citizen is encouraged to promote
the topic of the day in his/her behaviour. For instance, everyone should try to speak
English as much as possible on Thursdays. City administrators are the first persons to
show the example. On Fridays, the use of bicycles is promoted, the mayor himself being
famous for commuting to work by bicycle. This day could be expanded into a broader
topic of “green” day or “eco” day, to raise public awareness on a broader range of
environmental topics such as climate change, energy and water consumption, solid waste
collection and treatment, urban farming, etc.
Collaborating with universities, research institutes and the private sector for
innovation
The education sector is a critical asset of Bandung. In 2014, Bandung City had 78
higher education establishments, including colleges and universities, enhancing its
potential to become a world-class knowledge-based city. Many are among the best in
Indonesia and attract talented people from across the country (Tarigan et al., 2015). A
high proportion of the city’s population has attained higher education levels, as compared
to general trends in West Java Province (see Chapter 1).
This also offers an opportunity for the city to enlist co-operation on green growth
objectives. Universities and research institutes can support the local government in
producing, collecting and analysing data, given the lack of relevant data, which makes it
difficult to evaluate the situation and track progress. Data on GHG emissions, electricity
consumption and water consumption are not adequate (Table 4.4). Some data are also
only available at the scale of the City of Bandung or the West Java Province, rather than
at the scale of the Bandung Metropolitan Area. The definition of the functional urban area

is also unclear. The City of Bandung should thus identify the most appropriate institutions
in each opportunity policy area to outsource data research and analysis. Metro Vancouver,
for example, has created an overall Memoranda of Understanding (MoU) with several
local universities and research institutes to improve existing knowledge on the dynamics
of the metropolitan area (Box 4.5). One useful initiative that the City of Bandung could
consider would be an open data portal, similar to the Open Data NYC website.19 Since
there are still some restrictions in the access to data, this could help other institutions with
the data production and analysis work (see Chapter 3). In future, ambitious research
projects such as the City Science MIT MediaLab could be developed to undertake
advanced urban analytics.20
Table 4.4. Data on green growth not available in Bandung
Category Indicator Scale

Population census from the 1990s Jakarta Bandung Metro Region
Projection of population in 2020, 2030, 2040 and Jakarta Bandung Metro Region
Population
2050 BMA (including breakdown of districts)
Current unregistered population BMA (including breakdown of districts)
Economic Informal employment BMA (including breakdown of districts)
Frequent and dispersed PM10 and PM2.5
BMA (including breakdown of districts)
concentration measurement
Health issues deriving from air pollution BMA (including breakdown of districts)
Environment
Evolution of total greenhouse gas emissions
(including breakdown by source)
Vulnerability Assessment Map BMA
Public transport modal split (in total trips and in
commuting)
Transport Commuting patterns BMA (including breakdown of districts)
Congestion BMA (including breakdown of districts)
Evolution of population density by smallest
BMA
Land administrative units possible
Location of slums BMA
Final energy consumption by sector BMA (including breakdown of districts)
Energy intensity by sector BMA (including breakdown of districts)
West Java Province
Energy Renewable energy potential
West Java Province
Actual renewable energy generation
Generation cost for renewable energy Indonesia
Share of ground water use of total water supply BMA (including breakdown of districts)
BMA (all districts except City of Bandung, as
Non-revenue water
Water data is available there)
River and canal pollution BMA
Share of population treating black water BMA (including breakdown of districts)
Hazardous solid waste generation BMA (including breakdown of districts)
Solid waste
Methane emissions from landfills BMA

Box 4.5. Metro Vancouver’s MOU with the University of British Columbia
Metro Vancouver and UBC have a strong history of working together on a variety of projects within
Metro Vancouver’s areas of service. Researchers and students from the university’s key faculties and
research centres have been brought together with staff from Metro Vancouver’s line departments.
Collaboration has also focused on operational issues involving UBC’s main campus operations and
Metro Vancouver’s departments. A compendium of joint initiatives put together by Metro Vancouver
staff identified over 80 past and current joint projects between Metro Vancouver and UBC. Building on
the success of this relationship, in late 2014, senior staff from UBC and Metro Vancouver met to discuss
the goals and needs of their organisations, and the range of opportunities for collaboration. These
discussions led to the concept of a Strategic Collaboration Memorandum, allowing staff from both
organisations to work on a model to explore opportunities for future partnerships.
The Strategic Collaboration MOU is a non-binding document that expresses the shared commitment
of Metro Vancouver and UBC “to the principles of sustainability and to the belief that the long-term
liveability, prosperity and sustainability of the region – indeed the entire planet – require approaches to
problem-solving that are characterised by innovation, creativity, entrepreneurship and collaboration”.
The MOU is a framework document within which the parties will identify and pursue joint initiatives.
The scope of the MOU focuses the parties’ efforts on developing initiatives under three areas of
collaboration:
• Research, learning and innovation: under the MOU, the parties would endeavour to identify
new opportunities to share knowledge and research findings, jointly undertake research to
further individual and shared goals, and collaborate in the development of approaches designed
to address important regional and global sustainability challenges. The parties would also
regularly hold discussion forums and workshops for staff and researchers from the two
organisations. Information on best practices, innovations, technologies and approaches would be
shared at these events, as would ideas for new initiatives and ongoing collaboration. Finally, the
parties would seek ways to better engage UBC students in specific projects identified by Metro
Vancouver.
• Operations: their respective servicing responsibilities and activities involve Metro Vancouver
and UBC in a range of operational issues, some best addressed collaboratively. Collaboration on
these issues has been largely reactive and inconsistent, but through the MOU, the parties would
endeavour to identify issues pro-actively on which joint approaches for action can be considered.
• Regional prosperity: the MOU would bring the parties together as part of multi-party
initiatives, to address a range of topics related to prosperity. These might focus on reducing
regional greenhouse gas emissions, adapting to climate change, aligning growth in the region
with viable transport strategies and investment, and promoting conditions for a competitive
metropolitan economy.
The MOU is managed by a Joint Steering Committee co-chaired by a senior staff member from each
organisation. One of the key roles of the Steering Committee is to monitor and co-ordinate the initiatives
pursued under the MOU. The Steering Committee also ensures that the regular discussion forums and
workshops important to the exchange of ideas and development of collaboration opportunities are held as
envisioned under the MOU. The proposed MOU with UBC may serve as a template for similar
framework documents with other institutions, and can be viewed as the first in a series of strategic
collaboration initiatives. Metro Vancouver staff has had preliminary discussions on the topic with
representatives of Simon Fraser University, for instance.
Source: Metro Vancouver (2015), “Greater Vancouver Regional District Inter-government and Finance Committee”,
held 26 November 2015.
Finally, Bandung should support the private sector for innovation, through the great
potential localised in the city. The Teknopolis project developed by the local government

will consist of collaboration between academics, investors, communities and government

bodies, particularly around biotechnology, nanotechnology and information technologies
(City of Bandung, 2015b). This should have high impact in the medium to long term in
developing Bandung as a smart city with modern ICT. Telkom Indonesia, IBM and ITB
have already collaborated with the local government on smart city projects. These should
focus on the needs identified in Chapter 3 as priority research areas with the smart city
framework.
One important local initiative is the Institute for Innovation and Entrepreneurship
Development, an incubator of around 30 start-ups working in various sectors. One is
waste management – an urgent green growth issue in Bandung – and the Institute is
exploring options to treat the waste using flies. However, it lacks financial support and
relies on voluntary involvement. The City of Bandung could provide financial support for
this initiative, because it can help solve problems of technical capacity and bureaucracy in
the local administration. It could also communicate systematically on the problems city
administrators face in managing the city, to guide innovation priorities. Greater Lyon
(France) encourages innovative start-ups and companies in collaborative spaces and
services, including Lyon Urban Data and TUBÀ. Projects include developing tools for
measuring household gas consumption and a mobile application for estimating the arrival
of trains, buses and tramways in the Greater Lyon area.21 Local governments in the BMA
could replicate such initiatives to increase the role of the private sector in encouraging
urban green growth.

• Develop a national framework for solid waste and energy management in

Indonesian cities, and a national smart city plan and implementation strategy.
• Develop capacity-building mechanisms between the national, provincial and local
government to implement national green growth-related strategies, managed by a
dedicated national agency for green growth under Bappenas.
• Expand the eight advisory groups created by the City of Bandung to include
professionals and researchers, and link them to specific task forces (in particular
smart city, green growth) headed by Bappeda and co-ordinating policies for all local
departments.
• Provide sufficient power and resources to the future BMA co-ordinating body and create
a comprehensive development plan for the metropolitan area. Ensure the
involvement of the national government in its operations.
• Develop data production, collection and analysis mechanisms for the Jakarta-
Bandung region to understand linkages and needs for regional green growth strategies.
• Create mechanisms for national funding support for metropolitan-wide green growth-
related projects.
• Create sustainability standards for FDI and loosen current restrictions.
• Develop national incentives for green investment in the transport, solid waste and
flood resilience sectors, and develop capacity to issue green bonds at the local level.
• Develop initiatives at the national PPP unit to help increase local capacities for PPPs,
so that local governments are supported from the planning phase through to project
implementation and operation. Consider financial support for local feasibility studies
and bidding processes undertaken by sub-national authorities.
• Involve the BMA in official development finance processes and consider direct access
through local development funds.
• List and formally engage and organise local communities in supporting local green
growth-related projects, such as providing social benefits to waste scavengers.
• Raise awareness of the benefits of green growth, transforming the Bicycle Day into a
Green Day or Eco-Day.
• Enhance collaborating with local university and research institutes supporting data
production and analysis on urban green growth, and scale up existing innovation
initiatives. Prioritise assisting private sector initiatives to support innovation in green
growth.

Notes
1. Infrastructure development remains unequal across Indonesian provinces. OECD’s

Economic Survey of Indonesia (2016a, forthcoming) provides detailed information
and comparison across provinces.
2. The Jabodetabekpunjur (JMA) Development Co-operation Board (Badan Kerjasama
Pembangunan Jabodetabekpunjur), including DKI Jakarta and the regencies of Bogor,
Tangerang and Bekasi, was established in 1975.
3. One of the consequences of the decentralisation reforms was the blossoming of local
government units. Between 1999 and 2015, the number of provinces increased from
26 to 34, the number of regencies/cities increased by 55%, districts by 77% and
villages by 20% to over 83 000 (OECD, 2016a).
4. The real budget for 2015 and 2016 could not be calculated because the Consumer
Price Index is only available until 2014.
5. Figures given in this sentence were calculated using the purchasing power parity
(PPP) conversion factor for Indonesia and Thailand.
6 However, the figure for OECD unitary countries includes social security
contributions in the total tax revenue, while such funds do not exist in Indonesia. The
figure for Indonesia is therefore biased upward.
7. Indonesia, personnel accounted for 47% of all regency/city expenditure, up from 31%
in 2009. This is mainly financed by the General Allocation Fund: half is used to cover
wages and salaries in regencies and cities (OECD, 2016a).
8. See: Deal Street Asia (2015), “Indonesia: SMI to double infrastructure funding to
$1.6b in 2016”, www.dealstreetasia.com/stories/indonesia-smi-to-double-
infrastructure-funding-to-1-6b-in-2016-23137/ (accessed 20 June 2016)
9. “Green” lending was defined in this survey as lending contributing to renewables,
sustainable agriculture, green industry and eco-tourism.
10. Eventually, the PPP project was discontinued, due to a change in the national political
agenda.
11 The 2012 OECD report OECD Reviews of Regulatory Reform: Indonesia 2012:
Strengthening Co-ordination and Connecting Markets recommended the creation of
the PPP unit (OECD, 2012).
12. Presidential Regulations 67/2005, 13/2010 and 56/2011.
13. All the figures related to ODA given in this chapter are expressed in 2013 constant
prices.
14. Bilateral ODA activities targeting environmental objectives can be identified in a
dataset accessible through the OECD statistical website and from the CRS database.
This dataset contains commitment data on aid in support of environment
sustainability and aid targeting the objectives of the Rio Conventions (biodiversity,
climate change mitigation, climate change adaptation and desertification). Multilateral
ODA activities targeting environmental objectives can be identified in the CRS
database accessible through the OECD statistical website. The main approach to
identifying projects committed to urban areas was based on a word search of their

purpose name (e.g. “urban development and management”). For all other projects
whose purpose name did not make it possible to determine whether the project was
urban, the “urban” character was identified by examining each project description.
Similarly, the main element used to identify projects committed to rural areas was
their purpose name (“rural development”). A second step, if the purpose name was
not conclusive, was to look at the titles and a short description of the projects.
Agricultural, fishery and forestry projects were classified as rural. The remaining
rural projects were identified based on their long description. Unspecified projects
refer to all other projects, with no detailed description, no details on the geographical
scope or inconclusive geographical scope.
15. Hai Phong also benefited from projects financed by the International Development
Association (IDA) of the World Bank, at USD 440 million. These projects, however,
also benefited the cities of Ho Chi Minh City, Can Tho and Nam Ding, without
specifying how much of this was spent for Hai Phong. It was therefore excluded from
the calculations and included in the category “Other cities” in Figures 2 and 3.
16. This problem is also encountered in other countries of the region, but the size (in
terms of finance) of such hard-to-categorise activities is particularly large in
Indonesia.
17. See: Agence Française de Développement (AFD) (2015), “Projets d'appui aux Fonds
urbains”, www.afd.fr/home/pays/asie/geo-asie/afd-vietnam/cac-du-an-cua-afd-tai-
viet-nam/phat-trien-o-thi/projets-d-appui-aux-fonds-urbains (accessed 18 September
2015).
18. http://creativeconomy.bandung.go.id/networking/collaborations/ (accessed
8 March 2016).
19. See: NYC Open Data (n.d.), NYC Open Data website,
https://nycopendata.socrata.com/ (accessed 5 January 2016).
20. http://cities.media.mit.edu/research/urban-analysis (accessed 5 January 2016).
21. See: Grand Lyon économie (n.d.), “Grand Lyon, Smart city”,
www.economie.grandlyon.com/smart-city-services-entreprises-lyon-
france.348.0.html (accessed 5 January 2016); Greater Lyon business (n.d.), Business
Services, www.business.greaterlyon.com/ (accessed 5 January 2016). TUBĀ (n.d.),
TUBĀ website, www.tuba-lyon.com/ (accessed 5 January 2016).

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(04 2016 11 1 P) ISBN 978-92-64-26213-3 – 2016
Green Growth in Bandung, Indonesia
Contents
Chapter 1. The economic and environmental performance of Bandung
Chapter 2. Bandung’s emerging green growth opportunities
Chapter 3. The smart city vision and green growth in Bandung
Chapter 4. Governance for green growth in Bandung
Consult this publication on line at http://dx.doi.org/10.1787/9789264264113-en.

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GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Table 1.1. The Bandung Metropolitan Area ........................................................................... 18

Figure 1.1. The Bandung Metropolitan Area ....................................................................... 17

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Box 1.1. Indonesia’s national strategic areas........................................................................ 37

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Acronyms and abbreviations

3Rs Reduce, reuse and recycle

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

LRT Light-rail transit

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Opportunities for action

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Becoming a “smart city” with green growth

Governance for urban green growth

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

The economic and environmental performance of Bandung

Chapter 1 examines Bandung’s economic, social and environmental performance. It first

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

1.1. Demographic characteristics of the Bandung Metropolitan Area

Figure 1.1. The Bandung Metropolitan Area

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Table 1.1. The Bandung Metropolitan Area

Municipal area 2015 Annual Annual Area 2014 density Sub-districts

Cimahi City 586 580 - 2.06 39.3 14 926 3

Bandung Regency 3 534 114 -2.56 2.57 1 768.0 1 999 31

West Bandung Regency 1 629 423 - 1.97 1 305.8 1 248 16

Sumedang Regency** 371 938 2.79 1.23 207.6 1 792 5

Bandung Metropolitan Area 8 603 524 1.85* 1.94 3 488.0 2 467 85

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Figure 1.2. Population of Indonesia’s major metropolitan areas

Note: *This is a projected figure.

Figure 1.3. Age structures in selected Asian cities

0-14 years 15-64 years 65+ years

67% 69% 65%

73% 67% 75%

29% 27% 32%

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

1.2. The BMA’s socioeconomic structure

Strong but uneven economic growth

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Figure 1.4. Average annual GRP growth 2002-12 (PPP)

5.7% 5.7% 5.9%

2002 2012 Average annual GRP growth 2002-12

An emerging service-based urban economy, with a strong manufacturing sector

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

Figure 1.6. Number of people employed by industry

1 000 000 40%