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Long Range Urban Development Plan S REPUBLIC OF INDONESIA MINISTRY OF PUBLIC WORKS DIRECTORATE GENERAL OF HOUSING BUILDING PLANNING AND URBAN DEVELOPMENT (CIFTA KARYA) MEDAN URBAN DEVELOPMENT, HOUSING, WATER SUPPLY AND SANITATION PROJECT VOLUME III LONG RANGE URBAN DEVELOPMENT PLAN OCTOBER 1980 ENGINEERING-SCIENCE, INC. SINOTECH ENGINEERING CONSULTANTS, INC. A JOINT VENTURE in association with PADCO and P.T. DACREA PREFACE The feasibility reports emanating from the Medan Urban Development, Housing, Water Supply and Sanitation Project were submitted in draft form to the Government of Indonesia (GOI) in February 1980. These reports, together with the earlier master plan reports, were reviewed by GOI in July 1980 and discussed with the Consultant at a series of meetings at that time. The outcome of this review process was that certain changes in content and format were agreed. These changes have been incorporated into the final printed reports. A result of adopting the new guidelines provided by GOI is that differences occur between the Repelita III investments proposed in the master plan studies and those contained in the first stage program recommendations. The latter incorporate the final adjustments and represent the recommended program for Repelita III. TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES ORGANIZATION OF PROJECT REPORTS LIST OF ABBREVIATIONS SECTION 1 INTRODUCTION 1-1 1.1 GENERAL 1-1 1.2 NATIONAL DEVELOPMENT 1-2 1.3 THE GUIDING PRINCIPLES FOR MEDAN URBAN DEVELOPMENT 1-3 1.4 MAJOR CONCLUSIONS 1-3 1.5 FUTURE PROSPECTS 1-4 1.6 THE BASIC URBAN DEVELOPMENT STRATEGY 1-5 1.7 THE REGIONAL FUNCTIONS OF MEDAN 1-6 1.8 THE REGIONAL ECONOMIC BASE 1-6 1.9 MEDAN'S SUPPORTING ROLE IN REGIONAL DEVELOPMENT 1-7 SECTION 2 POPULATION CHARACTERISTICS AND GROWTH 2-1 2.1 NORTH SUMATRA AND MEDAN POPULATION 2-1 2.2 POPULATION PROJECTIONS 2-1 2.2.1 Age Distribution 2-2 2.2.2 Household Size and Distribution 2-3 2.3 EMPLOYMENT IN MEDAN 2-4 2.3.1 Labor Force Characteristics 2-4 2.3.2 Unemployment 2-6 2.3.3 Future Employment Prospects 2-7 2.3.4 Institutional Factors 2-9 2.3.5 Training 2-9 SECTION 3 THE ECONOMY OF MEDAN AND ITS REGION 3-1 3.1 THE NORTH SUMATRA ECONOMY 3-1 3.2 MEDAN'S ECONOMIC DEVELOPMENT 3-3 3.2.1 General Characteristics 3-3 v 3.2.2 Overseas Trade 3-5 3.2.2.1 Exports 3-5 3.2.2.2 Imports 3-9 3.3 INFLATION 3-12 3.4 INCOMES 3-12 3.4.1 Household Incomes 3-13 3.4.2 Household Expenditure 3-14 3.4.3 Total Kecamatan Incomes 3-14 3.4.4 Distribution of Household Income - 1980 3-17 3.5 CREDIT SITUATION IN MEDAN 3-18 3.5.1 Loan Conditions 3-19 3.5.2 Small Scale Exterprlse Credit Program 3-20 3.5.3 Real Investment 3-21 SECTION 4 THE DELIVERY OF BASIC SERVICES: HEALTH, EDUCATION, WATER SUPPLY, SANITATION AND HOUSING 4-1 4.1 DEVELOPMENTS IN HEALTH CARE 4-1 4.1.1 The Existing Health Facilities 4-2 4.1.2 Manpower 4-2 4.2 DEVELOPMENTS IN EDUCATION 4-4 4.2.1 Pre-primary Education 4-7 4.2.2 Elementary Education 4-7 4.2.3 Junior High School 4-8 4.2.4 Senior High School 4-8 4.2.5 Specialized Schools 4-9 4.2.6 Community Education (PENMAS) 4-9 4.2.7 Higher Education 4-9 4.3 WATER SUPPLY AND SANITATION 4-10 4.3.1 Water Supply 4-10 4.3.2 The Wastewater System 4-12 4.3.3 Solid Wastes 4-13 4.3.3.1 Collection 4-13 4.3.3.2 Transportation and Disposal 4-14 4.3.4 Drainage 4-14 4.4 HOUSING 4-19 4.4.1 The Current Housing Stock 4-19 4.4.2 Housing Needs in Medan 4-21 4.4.3 Kampung Housing 4-21 4.4.4 Rents within Kotamadya Low Income Kampungs 4-23 4.4.5 The Housing Program of Bank Tabungan Negara 4-24 4.4.6 Perumnas Sites and Services and Low Cost Housing Projects 4-27 4.5 CONSTRUCTION IN MEDAN 4-29 4.5.1 Composition of Construction 4-29 4.5.2 Construction Projects 4-30 4.5.3 Constru,-tion Cost Increases 4-32 4.5.4 Construction as a Component of Medan's Economy 4-32 vi SECTION 5 LAND USE AND DEVELOPMENT 5-1 5.1 THE LAND SITUATION 5-1 5.2 EXISTING LAND USE AND LAND DEVELOPMENT 5-4 5.3 EXISTING NORMS AND STANDARDS FOR DEVELOPMENT 5-9 5.3.1 Planning Standards of the Medan Master Plan 5-9 5.3.2 Comparison of Existing Provision with Master Plan Proposals 5-9 5.3.3 Planning Standards of the Tata Kota 5-10 5.3.4 Circulation Standards 5-10 5.3.5 Costs Implied by Planning Standards 5-11 5.3.6 Planning Practices Used in Medan 5-11 SECTION 6 TRANSPORTATION 6-1 6.1 ROAD NETWORK 6-1 6.2 PUBLIC TRANSPORTATION 6-3 6.2.1 Buses 6-3 6.2.2 Bemos and Mini Light Trucks 6-7 6.2.3 Becak 6-7 6.2.4 Taxi 6-7 6.3 KEY PROBLEMS 6-9 6.3.1 Land Use 6-9 6.3.2 Road Network 6-9 6.3.3 Traffic Control System 6-9 6.3.4 Mixed Traffic Components 6-10 6.3.5 Goods Movement 6-10 6.3.6 Railway 6-10 6.3.7 Public Transport 6-10 SECTION 7 PLANNING, PROGRAMMING AND FINANCING DEVELOPMENT 7-1 7.1 NATIONAL, PROVINCIAL AND KOTAMADYA PLANNING STRUCTURES 7-1 7.2 MEDAN'S PLANNING AND FINANCIAL STRUCTURE 7-3 7.2.1 Planning 7-4 7.2.2 Financial Performance and Future Requirements 7-6 SECTION 8 DISTRIBUTIVE INVESTMENT STRATEGY PLAN: OBJECTIVES, STRATEGIES, AND GOALS 8-1 8.1 INTRODUCTION 8-1 8.2 OVERALL OBJECTIVES 8-3 8.3 THE DISTRIBUTIVE INVESTMENT STRATEGY 8-4 8.4 ACTIONS REQUIRED AT THE NATIONAL AND PROVINCIAL LEVELS 8-5 8.4.1 Changes in the Economy 8-5 8.4.2 Initiation of Technological Change 8-6 8.4.3 Human Resources 8-6 vii 8.4.4 Housing 8-6 8.4.5 Land Acquisition and Development 8-7 8.4.6 Institutionalization of the Medan Metropolitan Region as a Strategic Area for National Development 8-7 8.5 ACTIONS REQUIRED AT THE MEDAN LEVEL 8-7 8.5.1 The Local Economy 8-7 8.5.2 Development of Human Resources 8-8 8.5.3 Low-Income Housing 8-8 8.5.4 Water Supply and Sanitation 8-8 8.5.5 Land Use and Physical Facilities 8-8 8.5.6 Transportation 8-9 8.5.7 Organization, Administration and Financing 8-9 8.6 THE PRIORITY DISP OBJECTIVES FOR REPELITA III 8-10 8.6.1 Health 8-10 8.6.1.1 Basic Objective 8-10 8.6.1.2 Goals for Repelita III 8-10 8.6.2 Education 8-10 8.6.2.1 Basic Objective 8-10 8.6.2.2 Goals for Repelita III 8-10 8.6.3 Housing 8-11 8.6.3.1 Basic Objective 8-11 8.6.3.2 Goals for Repelita III 8-11 8.6.4 Water Supply and Sanitation 8-12 8.6.4.1 Basic Objective 8-12 8.6.4.2 Goals for Repelita III 8-12 8.6.5 Planning, Programming, and Financing Development 8-13 8.6.5.1 Basic Objective 8-13 8.6.5.2 Goals for Repelita III 8-13 8.6.6 Economic D'",elopment 8-14 8.6.6.1 Basic Objective 8-14 8.6.6.2 Goals for Repelita III 8-14 SECTION 9 POPULATION 9-1 9.1 TOTAL POPULATION GROWTH 9-1 9.2 DETAILED POPULATION FORECASTS 9-2 9.3 HOUSEHOLD SIZE 9-4 9.4 LITERACY 9-4 SECTION 10 PRINCIPAL ECONOMIC ACTIVITIES 10-1 10.1 BASIC STRATEGY FOR ECONOMIC DEVELOPMENT 10-1 10.1.1 Infrastructure 10-1 10.1.2 Policy Framework for Industrial Investment 10-2 10.1.3 Ancillary and Support Services 10-2 10.1.4 Training 10-3 viii SECTION 11 WATER SUPPLY AND SANITATION 11-1 11.1 LEVELS OF SERVICES 11-1 11.1.1 Water Supply 11-1 11.1.2 Waste Water Service 11-3 11.1.3 Drainage 11-4 11.1.4 Solid Wastes 11-4 11.2 THE CAPITAL INVESTMENT IN WATER SUPPLY AND SANITATION 11-5 11.3 THE PRICING OF WATER SUPPLY AND SANITATION 11-5 SECTION 12 HOUSING 12-1 12.1 EFFECTIVE DEMAND 12-2 12.2 THE PRINCIPAL ELEMENTS OF THE DISP STRATEGY 12-4 12.2.1 Direct Public Sector Investment: Kampung Improvement Program 12-4 12.2.2 Sites and Services/Low Cost Rousing Programs 12-4 12.2.3 Indirect Support for Private Sector Housing 12-5 12.3 PROGRAM TARGETS 12-5 12.4 THE BASIC HOUSING PROGRAMS PROPOSED FOR REPELITA III 12-6 12.4.1 Domestic KIP Program 12-6 12.4.2 Sites and Services/Low Cost Housing 12-6 12.4.3 Private Sector Housing Development 12-9 12.5 CAPITAL REQUIREMENTS OF HOUSING PROGRAMS OVER REPELITA III 12-9 12.6 FINANCING FOR HOUSING PROGRAMS FOR REPELITA III 12-10 SECTION 13 HEALTH 13-1 13.1 OBJECTIVES AND STRATEGIES 13-1 13.2 HEALTH PROGRAMS: 1985 AND 2000 13-1 13.2.1 Preventive Health Program 13-1 13.3 CURATIVE HEALTH PROGRAM 13-3 13.3.1 Health Facilities and Manpower Requirements 1985 and 2000 13-3 13.3.2 Health Manpower 13-3 13.3.3 The Geographic Distribution of Health Services 13-6 13.3.4 Cost of New Health Facilities 13-6 SECTION 14 EDUCATION 14-1 14.1 BASIC OBJECTIVE AND STRATEGY 14-.
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