ABSTRACT

This chapter shows the strengthening of communications and of various forms of rural-urban linkages occurring steadily between Yogyakarta and its partly urbanizing hinterland. Such a process has a positive impact upon the extended periphery of Yogyakarta and along main transit corridors, in the sense that in such communities, employment is generated through commuting or, to a lesser extent, subcontracting. While this creates a dynamic with multiplier effects, the employment thereby created facilitates a decrease in out-migration rates in the more suburban communities. In more suburban communities, the sectoral shift occurring from agriculture to services seems to be accompanied by an increase in aggregate income levels which remain higher than those found in more outlying communities. The main planning concerns should be to define strategies aimed at widening the access to urban employment and markets made possible by commuting to a broader segment of income groups.