This study examines the extent to which the recent economic turmoil (“Krismon”) in Indonesia has affected urban development and in turn caused an urban crisis. It focuses on urban economy, employment, poverty, rural-to-urban migration, local government revenues, and spatial development. The study reveals a disastrous urban crisis which should seriously be taken into consideration for urban rehabilitation and development programs in the near future, including the creation of urban job opportunities and the provision of basic necessities for the poor.