The process of decentralizing government responsibilities to regional governments in Indonesia can be said to have begun with the ratification of Law (UU) no. 22 of 1999 concerning Regional Government and Law no. 25 of 1999 concerning Financial Balance between the Central and Regional Governments. In essence, these two laws transfer a number of political authorities and financial resources to the city and district levels, including in matters of urban administration, such as infrastructure development, provision of public services, and urban governance and management.

The urban problem currently facing Indonesia is the rapid rate of urbanization which has an impact on increasing the urban population until it is predicted to reach 72.8% in 2050, less than 15% of the urban population has access to safe and adequate drinking water, only 8.85% of the population who have access to proper sanitation, 4 out of 10 urban households live in uninhabitable houses, increasing air pollution due to motor vehicle emissions, 75% of urban coastal areas are prone to flood disasters and land subsidence, as well as the loss of more than 100 million USD per year due to traffic jams in 6 big cities in Indonesia: Jakarta, Bandung, Surabaya, Bekasi, Medan and Makassar.

The need for spatial development in Indonesia is not only in the macro context, but also in the meso to micro context. The following is a spatial development policy framework based on the challenges and problems of urban growth and development in Indonesia.

The city as a determinant of the surrounding area will continue to grow as a characteristic of civilization. In 2045, it is estimated that around 70% of the population will live in cities. Not only in Indonesia, cities throughout the world are also facing increasingly complex environmental, social and economic challenges. Climate change, rapid urbanization, pollution, and increasing infrastructure needs are some of these challenges. The context of problems regarding urban ecology and urban heat energy is currently considered to be very minimal in terms of documentation, so through working group activities on the NUF activity agenda it is hoped that urban documentation can be made easier.

Affairs related to public housing in Indonesia are very complex because the implementation system is very multi-actor, sectoral and tiered, making it a big challenge. Existing laws (UU) and Government Regulations (PP), such as Law Number 1 of 2011, Law Number 20 of 2011, Law Number 4 of 2016, as well as PP Number 14 of 2016, PP Number 64 of 2016, PP Number 47 of 2019, and PP Number 25 of 2020, are expected to be able to resolve basic service matters related to housing and residential areas. As is known, from 1950 until now (2024), or for 74 years, Indonesia has been trying to introduce the state's role in the housing sector. Efforts include various initiatives and programs designed to provide affordable and decent housing for the community.