Still Wanna Come to Big Urban City?

Urban migration is defined as the process in which more and more people leave the countryside to live in cities[1]. It started at the time of the industrial revolution, when workers moved to manufacturing hubs in cities to obtain jobs in factories as agricultural jobs were decreasing. Urban migration is also considered as an effect of current globalization since people has broader outlook and perspectives that try them to achieve better financial and life conditions. In 2009, half of the world’s population which was around 3.42 billion people, lived in urban areas[2]. Cities have been the centre of changes causing economic and population growth. Urban migration does not only bring positive opportunities but also creates negative effects especially on the socio-economic sector.

Urban migration is inevitable since there is no significant barrier for the rural population to move out and the consequence of rapid economic grow. According to Education Portal, rural to urban migration provides manpower to industries, which facilitates production and economic growth[3]. Since we know that an increase in the capacity of an economy to produce goods and services can boost the economic growth. The World Bank Group reveals that rural to urban migration benefits rural communities due to the money that relatives in urban centers send back home.

However, it causes negative effects especially on the socio-economic sector such as the increasing rise of slum areas, high unemployment, and on changes in lifestyle of the urban population. As we know, the unskilled and untrained rural population who moved to cities cannot promptly catch up their lag in technology and at the end they will only get low-paid jobs plus they all get shocked by how expensive the cost of living in cities. Their low salary forces them anyhow to survive in the city and it is closely linked to the formation of slum areas.

Further, The poor urban infrastructure, insufficient housing, and the inability to manage large population by local governments give rise to slum. The conditions of the slum areas in metropolitan cities have deteriorated to such an extent due to the high density of migrated population and they are hardly enjoy even the basic amenities. Sometimes inside the hut in Jakarta for example , there are 10 to 12 people live, sleep, eat, and cook at the same room. Data from the Central Statistics Agency (BPS) shows that in 2009, only 35 percent of Jakarta’s homes had access to potable water, and 32 percent of homes had a per capita living space of less than seven square meters[4]. The lack of access to water, sanitation or electricity is quite a common feature. They do not have water taps, use common latrines, and the sewage water stagnates in open surface drains, which emit bad smell. This lack of hygiene and sanitation amenities cause a health problem and diseases. The residents of slum areas can suffer from a variety of chronic illnesses, both infectious, and non-infectious.

Furthermore, the high unemployment is caused by the rural migrants who are unable to get immediate job, which leads to their financial shortage. So by the limited jobs, supply cannot full-filled the jobs demand on the market. With such a surplus of workers, this situation drives wages down, meaning that even when a person has a job , it may pay very little. However, the excess supply of workers is beneficial for the urban city to employ cheaper labors and produce more. Unfortunately, Indonesians prefer work with someone or for government than creating jobs. So again, only the qualified one who will get the post.

In Indonesia, the poverty rate declined by 1% annually from 2007 to 2011, but has fallen by an average of only 0.3 percentage points per year since 2012. Out of its population of 252 million, 28.6 million Indonesians still live below the poverty line and approximately 40 percent of inhabitants remain clustered around the national poverty line set at 330,776 rupiah per person per month[5] ( around $25.237[6]). Some people dive in an informal employment to survive. Informal economy is part of economy which is neither registered as a business nor licensed, not paid any tax, and not monitored by local or state or federal government. 54 percent of 118.05 million workers were informal in Indonesia in 2012, according to data from the Central Statistics Agency ( BPS )[7]. The government do not tax them as they considered to work “illegally”. This leads to the decrease of potential government revenue. It will slow down the infrastructure and country development projects.

Nevertheless, migration will continue to be a major, unstoppable factor of global life. If rural areas transform into cities, population distribution would stay the same. Therefore, the government should disperse population by developing rural areas but somehow even the government is still juggling to reduce the slum areas in urban city. The question on the title comes back to you. If you think you are capable to compete with others then I guess, why not give it a shot?

By: Semitta Bungamega | Ilmu Ekonomi 2015 | Staff Divisi Kajian Kanopi 2016

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References:

[1]http://www.collinsdictionary.com/dictionary/english/urban-migration

[2]http://www.un.org/en/development/desa/population/publications/urbanization/urban-rural.shtml

[3]https://www.reference.com/world-view/effects-rural-urban-migration-e0821c2cfc952794#

[4]http://jakartaglobe.beritasatu.com/archive/slums-in-jakarta-where-needs-of-the-poor-mismatch-the-needs-of-the-city/

[5]http://www.worldbank.org/en/country/indonesia/overview

[6]http://www.bloomberg.com/quote/USDIDR:CUR

[7]http://www.thejakartapost.com/news/2014/01/17/govt-needs-pay-more-attention-informal-sector.html