Abstract

Programs to alleviate poverty in Indonesia have been considered inadequate, as shown by the fluctuation of poverty incidence while the cost of poverty reduction programs has drastically increased during the second half of the reformation era. This reveals the need of public policy refinement. The Semarang Metropolitan Region (SMR) is of no exception. Previous studies conclude that while the non-farm sector has the potential to improve rural people’s welfare in the framework of sustainable metropolitan development, its development has not been appropriately encouraged by policies of the local governments, especially in the spatial aspects. This paper presents the first-year progress of a three-year research study, which is mainly aimed at answering the question of “how can spatial policy contribute more to the development of the rural, non-farm sector in the suburbs of a metropolitan region?” Three suburbs or districts within the SMR are studied: Susukan, Wonosalam, and Sukorejo. They have low urbanization levels, close proximity to Semarang metropolitan centres, and good potential to develop productive rural, non-farm activities. However, they have differences in spatial policies applied by the responding local governments, especially on how to facilitate the development of a productive non-farm sector. A variety of lessons can thus be learned and appropriate reformulation in the spatial policy can be recommended.