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Jakarta Post

Overlapping interests block TOD projects despite high demand

The Jakarta administration’s intention to build 13 transit oriented development (TOD) projects has attracted attention from the public as well as developers

Vela Andapita (The Jakarta Post)
Jakarta
Thu, July 12, 2018

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Overlapping interests block TOD projects despite high demand

T

he Jakarta administration’s intention to build 13 transit oriented development (TOD) projects has attracted attention from the public as well as developers.

However, the lack of coordination from related parties has stalled the construction project.

The TOD projects are expected to integrate residential, business and leisure space within walking distance of public transportation.

It is aimed at solving two of Jakarta’s main urban problems — the housing shortage and traffic congestion.

Several institutions have issued regulations to ensure that the projects go ahead.

The Agrarian and Spatial Planning Ministry issued Ministerial Decree No. 16/2017 on TOD, while the Greater Jakarta Transportation Body (BPTJ) conducted several studies and published a TOD master plan. The Jakarta administration also issued Gubernatorial Decree No. 48/2017 on TOD.

The Jakarta Development Planning Board (Bappeda) reportedly is setting up detailed guidelines for the TOD projects, while PT MRT Jakarta has chosen a Chicago-based developer as a consultant to help them with the project.

Jehan Siregar, who is an urban planning expert from the Bandung Institute of Technology (ITB), said the city administration should not let these institutions work based on their respective interests.

“There has to be an organization to mediate and regulate all parties [related to the TOD projects],” he told The Jakarta Post on Monday.

Its main job, Jehan added, would be to synchronize all parties contributing to the construction projects.

“[The organization] would deliberate the TOD’s spatial planning before construction commences. They should also make sure that the buildings around the TOD are interconnected and should also control residential and supporting facilities in the TOD,” he explained.

“If the city administration does not take firm action on inter-agency coordination, the TOD will most likely cause bigger problems in the future.”

Despite the city being unprepared and the regulatory problems, some developers working on TOD projects have started selling apartments for their respective companies.

Indonesian Real Estate Developers Association (REI) deputy director Hari Ganie said there had been increasing demand from the public for TOD apartments.

“The TOD seeks to solve urbanites’ problems as well as fulfill their lifestyle needs. They need to live close to public transportation and they don’t mind living in high-rise buildings,” he added.

Among the companies that have been gearing up to build the TOD is PT Intiland.

Given that it has signed a contract with PT MRT Jakarta, the company says it is ready to commence TOD construction once the MRT starts operating.

Intiland executive director Permadi Indra Yoga said it would build a 300-square meter apartment project near the Bendungan Hilir MRT station in Central Jakarta. The company has allocated Rp 40 billion (US$2.8 million) for the project.

“Our main concern at the moment is how to connect the TOD with other buildings in the area,” he said.

An urban expert from Tarumanegara University, Danang Priatmojo, said the city had to better prepare itself for further urban development. He added that some countries, especially in Europe, have been implementing the urban development concept.

“Countries in Europe have under- and above-ground public transportation. Jakarta should be able explore these possibilities because the ground level has been overused,” Danang said.

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