This study is undertaken in the context of Jabotabek (Jakarta and Bogor-Tangerang-Bekasi), as a major metropolis in a developing country, Indonesia, in which rapid urbanisation and metropolitanisation have occurred. Land and housing supply systems in Jabotabek have experienced evolutionary processes of changes in unprecedented degrees and extents over the past few decades. Apart from the narrow perspective of viewing land and housing supply system as a means of fulfilling housing demand, its operation in a rapidly urbanising context can also be seen as a process that influences the environmental quality of urban areas. Thus, while the sustainability o f the land and housing supply systems is very important for the long run supply o f urban housing in a rapidly urbanising area, these systems also need to be planned to account for the sustainability of the micro and macro urban environment.
The purpose o f this study is to understand and highlight the problems o f land and housing supply systems in the urbanisation and metropolitanisation oiJabotabek. A new approach to the study of urban environments has been attempted. The analysis is done through examining the impact of urbanisation process on land supply and urban environment and some critical planning issues related to the metropolitanising Jabotabek.
In a situation such as Jabotabek, understanding the stage and level of urbanisation and metropolitanisation and their relationships to land supply system for housing is a necessary step to determine the extent of the demand and supply aspects of land and housing. In this respect, the impacts of the operation of the land and housing supply systems are also found in the form of micro and macro environmental problems in the housing and urban environment. Finally, approaches to minimise environmental problems in Jakarta and Botabek are also discussed to highlight the advantages and the disadvantages of the existing practices.
This study has revealed that the current problems of land tenure and land administration in Jabotabek is influenced by the failure of the land revenue regime to pass on the data on registered traditional lands under the previous colonial administration o f ‘Land Rent’ system to the land administration regime under the new Indonesian land law, the UUPA1960. Consequently, a high degree o f informality in land transfers by individuals has been perpetuated in urban areas o f Jabotabek, especially in Jakarta. However, in recent years, there has been a shift in land and
housing supply systems from one dominated by the informal system (in Jakarta) previously, to one more dominated by the formal system (in Botabek). Apart from the growth in power of private ownership resulting from the adoption o f the market economy system, this trend has also a led to the enhancement o f the private formal housing sector, an increasing demand for better micro and macro housing environmental quality from the growing number of middle income group, and consequent impact of national policy on private investments in all economic sectors.
There are also other significant findings leading to the conclusion that: a) the land and housing supply systems’ operations in Jabotabek are, in some ways, influenced by the process of urbanisation and metropolitanisation in those areas; b) both, the informal and the formal land and housing supply systems’ operations have significant impacts on the micro and macro housing environmental quality; c) through market mechanism, the relationship between meeting the present demand for housing from private business point of view and the sustainability o f the land and housing supply for future demand is in the form of a trade-off; and d) the relationship of the affordability of housing product and the environmental quality o f housing at micro and macro level is also in the form of a trade-off.
In this study, a recommendation is made to improve the land and housing supply system through a firm control on land allocation and supply, control on land price and control on environmental quality in terms of planning, land improvement, and infrastructure, and basic services provision through an appropriate government body. This body could be purely public or semi-public depending on the local circumstances on land holdings and availability o f funds. However, implementation of the various strategies would only be possible if the necessary prerequisites are fulfilled. Prerequisites such as the development of necessary statutory instruments, establishment of necessary institutions, and the availability of adequate funds through public or public-private cooperation to monopolise the land banking system, are all fundamental in taking firm control over the undesirable practices of the present.
Although the research is confined to Jabotabek, the findings are applicable to similar situations in other developing countries where land and housing supply systems in operation match those of Jabotabek. However, the current Asian economic crisis situation (including in Indonesia), has not been considered in this study. This situation that arose long after this research study was initiated provides ample scope for a new study incorporating this new dimension o f fiscal uncertainties.