Slum Upgrading and Long-Run Urban Development: Evidence from Indonesia

This paper estimates the long-term causal effects of the Kampung Improvement Program (KIP), one of the world’s largest slum upgrading programs, on urban development in Jakarta, Indonesia. KIP ran from 1969 to 1984 across three staggered waves (Pelita I-III), covered 110 square kilometers (25% of Jakarta’s area), and served approximately 5 million residents at a total cost of roughly $500 million (2015 USD). The program provided basic physical upgrades — paved roads and footpaths, sanitation and drainage, and community buildings such as schools and health clinics — along with a verbal non-eviction guarantee for 15 years. Residents were not relocated.

Mariaflavia Harari | Macro Paper Warehouse

Slum Upgrading and Long-Run Urban Development: Evidence from Indonesia