Socio-Economic Factors as Determinants of the Formation of Urban Slum Settlements: A Thematic Literature Review and its Implications for Settlement Planning in Central Kalimantan

Abstract

Slums are a complex urban problem and cannot be separated from the underlying socio-economic problems. In Indonesia, the rate of urbanization, which is projected to reach 60 percent by 2025, has not been fully matched by the availability of decent housing for low-income communities, so that slum areas continue to grow in various cities, including Palangka Raya City, Central Kalimantan, which has a total slum area of 231.25 hectares. This study aims to identify and synthesize the socio-economic factors that are the main determinants of the formation of urban slums in Indonesia, as well as formulate their implications for settlement planning strategies in Palangka Raya City and Central Kalimantan. The method used is a thematic literature review (narrative/thematic review) of literature sources selected based on inclusion and exclusion criteria from the Google Scholar, Garuda, and SINTA databases, covering the period 2015 to 2025. The results of the study identified five themes of socio-economic determinant factors, namely: (1) poverty and low income levels, (2) uncontrolled urbanization and migration flows, (3) low levels of education and limited access to formal employment, (4) uncertainty of land ownership status, and (5) inequality in access to basic services and infrastructure. These five factors work interrelatedly in a cyclical and self-reinforcing causality pattern. These findings imply the need for an approach to handling slum settlements in Palangka Raya City that integrates economic empowerment, land legalization, urbanization management, and collaborative financing in a comprehensive planning framework, going beyond a purely physical improvement approach.