56.7% of Indonesia's Population Lived in Urban Areas in 2020

The Central Statistics Agency (BPS) estimates that 56.7% of Indonesia's population lived in urban areas in 2020. This percentage is predicted to increase to 66.6% by 2035.

In line with this, the World Bank also estimates that 220 million Indonesians will live in urban areas by 2045. This number is equivalent to 70% of the country's total population.

Jakarta is the city that receives the most migrants from other regions. It's not only a destination for permanent residents seeking employment, but also for commuters. According to BPS data from 2019, 1.25 million commuters from the Bodetabek region had their main activities in Jakarta.

Urbanization to large cities like Jakarta will drive significant economic growth. However, there are negative impacts of urbanization, such as traffic congestion, slums, increased crime, pollution, and so on.

Urbanization also impacts the areas left behind. These areas will experience slower economic growth because most of their working-age population lives in large cities.

For information, the United Nations (UN) notes that more than half of the world's population currently lives in cities. This number is expected to continue increasing to three billion by 2050.