Perpustakaan Digital ITB

This study is about the role of market forces and spatial planning in land development. As case studies, it takes Jakarta (Indonesia) and Hong Kong. The purpose of this study is to understand the role of market forces and spatial planning on urban land development and the factors behind the success and failure in overcoming the market forces in both cities. To identify the dominancy of market forces or spatial planning on land development, this study looks at the direction of land development in the last 25 years and the rate of green space reduction.Spatially, the direction of land development in Jakarta is not in line with the intention of the spatial plan. According to 1985 Master Plan, the land development in Jakarta should take east-west direction. Furthermore, this master plan assigns the southern Jakarta as the preservation area for soil and groundwater. However in reality, Jakarta sprawls in all direction including to the southern Jakarta. Apparently, the sprawl of Jakarta follows the cheaper land price in the fringe area. Also, the enormous growth of land development has sacrificed the green space in Jakarta. During the years of 1980-2000, Jakarta has lost 31 % of its green space, replaced mostly by residential and commercial use. These findings confirm the dominancy of market forces on land development of Jakarta. Simply put, market forces have dominated the land development in Jakarta.In contrast, this study notices that the spatial planning in Hong Kong has successfully directed its land development. The development of urban use in Hong Kong follows the intention of Territorial Development Strategy (TDS) and New Towns Program. Additionally, Hong Kong has succeeded to preserve its green space. Within 2003, the green space still dominated the land use that is 75 % of its total area. Hong Kong has lost only 13 % of its green space during the periods of 1980 – 2000. Based on the case studies, this study finds that the market forces has overtaken the role of spatial planning in directing land development in Jakarta, while in Hong Kong, spatial planning steers the land development in Hong Kong. To discover the reasons for the success and failure to overcome the market forces, this study examines the spatial planning system in the two cities and the governance that surrounds it.This study concludes that the governance that environs the spatial planning, particularly in land development control, is the more significant factor than the spatial planning system in overcoming the market forces. Although Jakarta has a strict spatial planning system, however without good governance, the spatial planning is impotent in the face of market forces. The developers (individuals and companies) can influence the decision for permitting the development that is not in conformity with the spatial plans through negotiation and hidden fees, especially when the private sectors has specifically different ideas about the location of their investments. Moreover, this kind of practices has spread rampantly in Jakarta's urban management, including in the land development permit system.In contrast, although Hong Kong has a flexible system, nevertheless, the good governance in Hong Kong has led to the spatial planning victorious in the face of market forces. Corruption is no longer the problem in its urban management. Therefore, this study recommends that Jakarta has to present the good governance, especially on its land development. Furthermore, the most important is to perform a clean government.