Migration and squatter settlements in Indonesia : a chi-square approach to systemic social problems as a basis for policy formulation

Typescript (photocopy).The tremendous growth in Indonesia's economy is the result of national development programs. However, the hastened modernization programs have created social imbalances which escalate the proliferation of squatter settlements in the cities. Because the modernization of the agricultural sector lacks provisions for maintaining employment and other communal opportunities, this situation has driven a large number of ruralites to migrate to major urban areas in search of better living conditions. Being mostly poor and unskilled, the migrants resort to illegal taking of urban lands on which they build makeshift shacks, and to informal activities to make their living. This research finds that the current programs to improve the squatters' conditions merely address the urban symptoms rather than the cause of the overall problem. Further findings indicate that most of the squatters in the sample have migrated in search of jobs. The migrant squatters, therefore, represent untapped labor force wasted in urban informal activities, while they otherwise could have been more productively mobilized in the development of the country. Instead of relying solely upon the most advanced imported technologies that deprive most citizens of jobs, the Indonesian economy should capitalize on the massive indigenous labor force in ways that maximize the distribution of development benefits.Hence, the recommended policies are: (1) rural development that generates employment opportunities to reduce migratory drives, (2) squatter programs that recognize the migrants' needs priorities, and (3) 'district or regional approach' to national development