Planning Regulations, Urban Development and Land for Housing Provision Prof. Haryo Winarso Urban Planning and Design Research Group School of Architecture Planning and Policy Development Institute Technology Bandung Unless otherwise stated, photos and illustrations in this presentation are obtained from internet available publicly; with no permission only for private use- not for commercial.
Outline • Introduction • Competing ideological perspectives in planning regulations • Planning restricts the use of land for urban development • Land for housing: Jabodetabek case • Land Banking for housing development • Summary
Introduction • Not a law expert • Looking at laws for urban Development from planners point of view • Looking at the challenges for housing provision
Competing ideological perspectives • McAuslan’s, over 35 years ago, identified three distinct and competing ideological perspectives in UK planning law: • a) that the law should be used to protect private property; • b) that the law should advance the public interest; and • c) that the law should be used to advance public participation (McAuslan, 1980, p. 2)
Competing ideological perspectives • Law no 5 of 1960 on Basic Agrarian Principles • Has those three ideologies at the same time.
• It protects the private property: chapter II article 16 on the right on land • It advances public interest: • Article 6: All land rights have a social function. • Article 7: To prevent the public interest from being harmed, excessive land ownership and possession is forbidden. • Article 8 : On the basis of the State’s right of control referred to in Article 2, the acquisition of the natural resources which are contained in the earth, water, and airspace is to be regulated. • Article 18: In the interests of the public as well as of the nation and of the state and in the collective interests of the people, land rights can be revoked by providing appropriate compensation and in accordance with the procedure which is to be stipulated by way of an Act. (Law no 2 of 2012)
• It also advance public participation
• Article 12: • (1) All joint enterprises in the area of agrarian affairs are to be based on the common interest within the framework of the national interest and are to be undertaken in the form of cooperatives or other methods of gotong royong (mutual help). • (2) The state can, in cooperation with other parties, undertake enterprises in the area of agrarian affairs.
Competing ideological perspectives • Law no 26 of 2007 on Spatial Management • It protects the private property: i.e Article 60 regarding the right of every person • It advances public interest: Basically this law is stressing the use of land for public interest ,more than protecting private property: i.e environment protection. i.e Article 7: State caries out spatial management for the greatest benefit of the people • It also advance public participation: i.e Article 9 (2) c. coordination with stake holders
• Planning regulations with those three competing ideological perspectives can restricts the use of land
Planning restricts the use of land for urban development • Planning regulations, as widely accepted, will 1. Limits and geographic preferences on the density and intensity of development. 2. Design and performance standards for lots and buildings. 3. Cost shifting from the locality to the developer. 4. Withdrawal of land from developable supplies. 5. Direct and indirect controls on growth, applied against buildings and population.
(Deakin. 1989)
Planning restricts the use of land for urban development • Planning Regulation for example, RTRW/RDTR, Zoning Regulation, environmental protection, and process requirements will cause delay and increasing cost to housing production: 1. Limits the supply of housing units and land usable for housing purposes, 2. cost increases, and 3. Delay due to the permit process.
.
• In Jabodetabek land price keeps increasing
Land for Housing: Jabodetabek Area • Land for housing is limited due to the planning regulation while the demand for housing is increases causing the soaring land price • Land is too expensive for low income housing
Land for housing: Jabodetabek case • Land price
Source: BI-ITB , 2015
Land for housing: Jabodetabek case • There is a possibility of oligopolistic market due to the interconnection among developers in Jabodetabek • This type of market has made the price of land in the formal housing development dictated by the developers. • Land become commodity and source of income: Investment in land is very profitable
Source: Kartiwa,H. and Winarso,H. (Forthcoming)
TABEL 2 KOMPARASI KENAIKAN HARGA LAHAN DENGAN BERAGAM INDIKATOR
Sumber: (1) Properti Indonesia, (Nopember 2015), (2) Tim Peneliti Bank Indonesia (2015), (3) DBS Vickers (2014), Eastspring Investments Indonesia (2015), data perusahaan.
Kenaikan pertahun 2010-2014 Harga Lahan Jakarta (1)
2013-2014 18.72%
Harga Lahan Jakarta dan sekitarnya (2)
24.54%
Harga lahan di 11 proyek residensial di Jabodetabek (3)
34.83%
PDB (% yoy)
5.84%
5.0%
Inflasi (% yoy)
4.69%
8,36%
BI rate (% rata-rata periode)
6.57%
7.54%
BI rate (% akhir tahun)
6.70%
7.75%
Suku bunga deposito 12 bulan bank umum (%)
7.04%
8.24%
Harga emas (% akhir tahun)
8.19%
-1.17%
IDR/USD (rata-rata periode)
7.14%
13.64%
IDR/USD (akhir tahun)
8.90%
2.06%
UMR/UMK
22.61
14%
Indeks Harga Perdagangan Besar Bahan Bangunan
4.13%
6.49%
Tabel 1. Proyek perumahan di Jabodetabek berdasarkan lokasi, jumlah, dan luasnya (Hasil analisis berdasarkan pengembangan data dari Properti Indonesia, 2014).
Kawasan
Luas Kawasan (ha)
Jumlah Proyek
Luas Proyek (ha)
Persentase
a
b
c
d
(d/b)
DKI Jakarta
66.233
48
2913,72
4,40%
Kab. Bogor Kota Bogor
242.045
86
9650,4
3,99%
Kota Depok
20.029
104
1298,46
6,48%
Kab.Tangerang Kota Tangerang Kota Tangerang Selatan
126.072
80
14.491,42
11,49%
Kab. Bekasi Kota Bekasi
148.439
89
15.793,24
10,64%
602.818
407
44147.24
7,32%
Total
Kenaikan harga lahan di Jabodetabek 2010 2014 Persentase Kenaikan Harga Lahan Wilayah
Rata-Rata
(2010- 2011)
(2011-2012)
(2012-2013)
(2013-2014)
18,21%
21,01%
14,65%
10,85%
16,18%
28,57%
22,22%
63,64%
27,78%
35,55%
16,38%
18,52%
25,00%
22,00%
20,47%
28,57%
23,33%
49,10%
19,34%
30,08%
32,00%
51,52%
25,00%
40,00%
37,13%
DKI Jakarta Kota Tangerang Kota Tangerang Selatan
Kota Bekasi Kota Depok Rata-rata Kenaikan Harga Lahan 2010-2014
24,54%
Sumber: Winarso dkk (2015)
TABEL 4 JUMLAH DAN LUASAN PROYEK RESIDENSIAL DI JABODETABEK
Kategori <5 hektar 5-10 hektar 11- 50 hektar 51-200 hektar 201-500 hektar >500 hektar Total
Jumlah 222 41 63 41 11 19 397
Persentase Jumlah 55.92% 10.33% 15.87% 10.33% 2.77% 4.79% 100%
Luas (ha) 312.14 290.8 1611.4 4749 3329.9 31.976 42.269,24
Sumber: Diolah berdasarkan data Properti Indonesia (2014) dan BPS.
Persentase Luas 0.74% 0.69% 3.81% 11.24% 7.88% 75.65% 100%
• One of the challenge for public housing development is the availability of land. • Low cost public housing have to compete with private housing
Land Banking for Housing Development • Land banking can be 1. Private Land banking 2. Public Land Banking 3. Hybrid Land Banking
Land Banking for Housing Development • BENEFITS: The following are some of the benefits attributable to a land bank: 1.
2. 3. 4.
5.
6.
TAX REVENUE: Since land banks can speed up the process for converting vacant, abandoned, and foreclosed properties to productive use, the local government will experience an increase in property tax revenue generated by those parcels. COST SAVING: Local governments are able to reduce costs associated with added police services, emergency protection, inspections, MAINTENANCE: Provides maintenance services for vacant lots and abandoned properties. DEMOLITION: Able to undertake selective demolition of structures that are in serious disrepair.. PARCEL ASSEMBLY: The land bank can assemble and hold parcels that are in close proximity to one another for future transfer to a developer for housing, retail, and other purposes. AFFORDABLE HOUSING: Affordable housing opportunities can be created through the land disposition policies of a land bank.
Land Banking for Housing Development Luas lahan yang dikuasai pengembang swasta 2015
Kategori Luas (ha) ≥50 s/d <200 ≥200 s/d <500 ≥500 Total
Persentase Persentase Jumlah Luas (ha) Jumlah Luas 42
53,84%
4.363
9,88%
17
21,79%
4.629,9
10,49%
20 78
25,64% 100%
32.876 41868,9
74,47% 100%
Sumber: Kartiwa , 2016
Land Banking for Housing Development • Land banking can be used to • Direct urban development • Ensure the availability of land for housing and infrastructure • Capture the value added of land development
Summary • Planning regulations restrict the use of land • Planning regulations contribute to the increasing land price • Land banking can be used as public instrument to provide land for housing development
