1. Home
  2. Vol 12, No 1
  3. Pradoto

THE POTENTIAL OF LAND VALUE CAPTURE FOR A TRANSIT-ORIENTED DEVELOPMENT INITIATIVE IN PEKALONGAN CITY CENTER

Wisnu Pradoto, Mardwi Rahdriawan, Muhammad Safrul, Nurul Anam Ramli

Abstract


Investment is a trigger for increasing the economic potential of a region. Land value is an indicator that not only reflects it, but also shows its development prospects. Government applies variety instruments of land use to improve the attractiveness of an area, especially for commercial activities. This study aims to formulate the Land Value Capture model as an innovation for financing the infrastructure development as well as for generating public revenues. Pekalongan City Center, which is located around the railway station, is an economic magnet that contains several advantages for Transit Oriented Development application. This research examines the determinant variables through Multiple Linear Regression. The model shows the significance of each influencing factor to raise land value. The study finds LVC tools that possibly applied. Discussion regarding the lack of financial capacity on government side while developable land is predominated owned by public institution vis-à-vis the needs for involving private investors to optimize the economic potential for new development is interested to understand about the differences between theoretical and practical point of view.

Keywords


Land Value Capture; Transit Oriented Development; Pekalongan City; Sustainable Urban Development; Economic Benefit

Full Text: PDF

References


Abiad, A., Farrin, K., & Hale, C. (2019). Sustaining Transit Investment in Asia's Cities: A Beneficiary-Funding and Land Value Capture Perspective. In. Philippines: Asian Development Bank.

Budiati, W., Grigolon, A. B., Brussel, M., & Rachmat, S. (2018). Determining the Potential for Transit Oriented Development Along the Mrt Jakarta Corridor. Paper presented at the IOP Conference Series: Earth and Environmental Science.

Dawkins, C., & Moeckel, R. (2016). Transit-Induced Gentrification: Who Will Stay, and Who Will Go? Housing Policy Debate, 26(4-5), 801-818. doi:10.1080/10511482.2016.1138986

Debrezion, G., Pels, E., & Rietveld, P. (2007). The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis. The Journal of Real Estate Finance and Economics, 35(2), 161-180. doi:10.1007/s11146-007-9032-z

der Krabben Erwin, v., & Needham, B. (2008). Land Readjustment for Value Capturing: A New Planning Tool for Urban Redevelopment. Town Planning Review, 79(6), 651-672. doi:10.3828/tpr.79.6.4

Design Concept Report for the Development of a TOD Center Around Batik Plaza Pekalongan City.

Dirgahayani, P., & Choerunnisa, D. (2018). Development of Methodology to Evaluate TOD Feasibility in Built-up Environment (Case Study: Jakarta and Bandung, Indonesia). Paper presented at the IOP Conference Series: Earth and Environmental Science.

Iacono, M., Levinson, D. M., & Zhao, Z. (2010). Value Capture for Transportation Finance. Available at SSRN: https://ssrn.com/abstract=1737786. doi:http://dx.doi.org/10.2139/ssrn.1737786

Khan, M. (2004). State Failure in Developing Countries and Institutional Reform Strategies. Toward pro-poor policies: aid, institutions, and globalization, 165-196.

Ko, K., & Cao, X. (2013). The Impact of Hiawatha Light Rail on Commercial and Industrial Property Values in Minneapolis. Journal of Public Transportation, 16(1), 47-66. doi:https://doi.org/10.5038/2375-0901.16.1.3

Ministry of Economic Affairs. (2019). The Potential of Land Value Capture (LVC) Implementation With Transit-Oriented Development (TOD)-Based in Indonesia. Roundtable Discussion on Sustaining Transit Investment in Asia’s Cities.

Nasution, A. (2017). The Government Decentralization Program in Indonesia. In Central and Local Government Relations in Asia (pp. 276-305). Cheltenham, Britania Raya: Edward Elgar Publishing.

Pekalongan City. (2020). The Land Development Policy is contained in Pekalongan City Regional Regulation Nomor 9 of 2020 Concerning Amendments to Pekalongan City Local Law Nomor 30 of 2011 Concerning Pekalongan City Spatial Planning for 2009-2029.

Prabowo, R. S. (2018). Stadion Hoegeng Markas Persip Pekalongan Ambruk. Bola.com. Retrieved from https://www.bola.com/indonesia/read/3333171/stadion-hoegeng-markas-persip-pekalongan-ambruk

Pramana, A. Y. E. (2018). Korelasi Aksesibilitas Transportasi Publik dan Nilai Lahan di Kawasan Perkotaan Yogyakarta. (Disertasi Doctor), Institut Teknologi Nasional Yogyakarta, Yogyakarta.

Prasetya, N. A., & Sunaryo, P. B. (2013). Faktor-Faktor Yang Mempengaruhi Harga Lahan di Kawasan Banjarsari Kelurahan Tembalang, Semarang. Teknik PWK (Perencanaan Wilayah Kota), 2(2), 223-232. doi:https://doi.org/10.14710/tpwk.2013.2300

Presidential Decree Nomor 79 of 2019 concerning the Acceleration of Economic Development in Central Java Province.

PwC. (2019). Value Capture. Retrieved from https://www.pwc.com

Radio Kota Batik Pekalongan (Producer). (2020). Dinparbudpora Fokus Pemeliharaan Area dalam Stadion Hoegeng. Retrieved from https://rkb.pekalongankota.go.id/berita17936-1-dinparbudpora-fokus-pemeliharaan-area-dalam-stadion-hoegeng.html

Rahardian, G. (2015). Skenario Perkembangan Permukiman di Kawasan Perkotaan Bandar Kedungmulyo Pasca Terbangunnya Interchange Jalan Tol Mojokerto-Kertosono. Perencanaan Wilayah dan Kota, Institut Teknologi Sepuluh Nopember.

Septiandini, F., & Syabri, I. (2019). Identifikasi Proses Kerjasama dalam Land Value Capture pada Kawasan Transit Oriented Development (TOD) Dukuh Atas dengan Perspektif Rational Choice Instituonalism. Jurnal Perencanaan Wilayah dan Kota, 1-10.

Staricco, L., & Vitale Brovarone, E. (2018). Promoting TOD through regional planning. A comparative analysis of two European approaches. Journal of Transport Geography, 66, 45-52. doi:https://doi.org/10.1016/j.jtrangeo.2017.11.011

Subroto, G. (2018). Model Optimasi Nilai Lahan pada Kawasan Potensial Jalan Lingkar dalam Timur Surabaya. (Thesis), Institut Teknologi Sepuluh Nopember, Surabaya.

Susantono, B. (2019). MRT boosts land values—so why not create triple win? Retrieved from The Jakarta Post, BusinessWorld, The Nation (Thailand). Philippines: https://policycommons.net/artifacts/400098/mrt-boosts-land-valuesso-why-not-create-triple-win/1369063/

Suzuki, H., Murakami, J., Hong, Y.-H., & Tamayose, B. (2015). Financing Transit-Oriented Development With Land Values: Adapting Land Value Capture in Developing Countries: World Bank Publications.

Syabri, I., & Septiandiani, F. (2020). Applying Land Value Capture (LVC) Institutional Model for Transit-Oriented Development (TOD) in Jakarta. Institut Teknologi Bandung, Bandung.

Talitha, T., Firman, T., & Hudalah, D. (2020). Welcoming Two Decades of Decentralization in Indonesia: A Regional Development Perspective. Territory, Politics, Governance, 8(5), 690-708. doi:10.1080/21622671.2019.1601595

Thomas, R., & Bertolini, L. (2017). Defining Critical Success Factors in TOD Implementation Using Rough Set Analysis. Journal of Transport and Land Use, 10(1), 139-154. doi:http://dx.doi.org/10.5198/jtlu.2015.513

Thomas, R., Pojani, D., Lenferink, S., Bertolini, L., Stead, D., & van der Krabben, E. (2018). Is Transit-Oriented Development (TOD) An Internationally Transferable Policy Concept? Regional Studies, 52(9), 1201-1213. doi:10.1080/00343404.2018.1428740

Wang, J., Samsura, D. A. A., & Krabben, E. V. d. (2019). Institutional Barriers to Financing Transit-Oriented Development in China: Analyzing Informal Land Value Capture Strategies. Transport Policy, 82, 1-10. doi:https://doi.org/10.1016/j.tranpol.2019.07.010

World Bank. (2015). Financing Transit-Oriented Development With Land Values. World Bank Group.

World Bank. (2017). City Planning Labs – Towards an Integrated Transportation and Land Use Plan for Semarang. World Bank Group.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Jurnal Pengembangan Kota

License URL: http://creativecommons.org/licenses/by-nc-sa/4.0