Abstract

The development gap between urban and rural areas in Indonesia remains a structural problem despite the implementation of decentralization policies for more than two decades. This disparity is influenced not only by geographical and economic factors, but also by differences in political, fiscal, and administrative capacity between regions. This study aims to examine the role of political and administrative areas in urban-rural inequality through a literature review focusing on human development, public services, and the economy. The method used is a descriptive literature review, which involves analysis of national scientific publications, government agency reports, and other official data sources. The results of the study show that regional administrative capacity has a significant influence on human development achievements, especially in terms of access to education and health in rural areas. In addition, the implementation of regional autonomy and fiscal policies, including the management of transfer funds, has not been fully able to reduce the gap in public services between regions. From an economic perspective, the political structure and uneven distribution of development contribute to high poverty rates and income disparities in rural areas. This study emphasizes the need to strengthen institutions, refine needs-based fiscal policies, and increase the capacity of local governments to achieve more inclusive and equitable development.