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"This article is focused and the effect of economic development, especially urban development, upon informal activities and urban poor. The gist of this article is that although an impressive record of economic growth had been achieved during PJP I (the first long term development strategy), the urban informal activities and urban poor still seamed to experiences the same problems. Partly these as a result of the development implemented tend to be concentrated in urban areas of Java, especially around the primate city of Jakarta. This inequality of development not only affected the performance of development activities but has also hindered the spread of employment opportunities to other areas, both rural and urban. Consequently, most of the urban labour forces have forced to remain involved in the informal activities and therefore keep them stay in the poor conditions."