As a city notorious for its severe traffic congestion, Jakarta is gradually evolving into a more pedestrian-friendly city and improving its public transportation by starting to revitalize the transit hubs with a transit-oriented development (TOD) approach.

The Jakarta administration has put much hope into the TOD approach, believing it will reduce congestion and provide more walkable areas. TODs are also expected to help solve the housing backlog by developing more housing and boosting the economy through the potential business opportunities that are expected to grow around them.

Despite the slow progress, railway-based public transportation operators, city-owned PT MRT Jakarta and state-owned PT Kereta Api Indonesia (KAI) have been gearing up to develop their TODs in several locations across Greater Jakarta.

MRT Jakarta has announced it will build around 50,000 apartments through its TOD projects in five locations along its first line: Lebak Bulus, Fatmawati, Blok M, Istora-Senayan and Dukuh Atas.

Adding to that, MRT Jakarta business development director Ghamal Peris said the company saw the TOD project as an opportunity to gain more income.

“TOD will increase the value of an area within a 700-meter radius. As it becomes more walkable and liveable, more people will be there. It also means more potential customers for businesses,” he told The Jakarta Post recently.

Through the issuance of three gubernatorial decrees, the Jakarta administration has mandated the push for TOD development and appointed MRT Jakarta as TOD operator.

As the operator, MRT Jakarta has created urban design guidelines for TOD that are currently pending Governor Anies Baswedan’s approval. Once they are signed and a gubernatorial instruction is issued, MRT Jakarta can commence the TOD development.

Ghamal added the company planned to collect more money from floor area ratio belonging to buildings around TODs. “As the TOD enables more people to stroll around the place, the area surrounding it should increase its capacity to accommodate them,” he said.

“We can make deals with the building owners. They are allowed to add more floors to their building, but they will be required to pay a certain amount of money to us, as the TOD operator. We’ll use some of the money to build public facilities and keep the rest as our income,” he added.

Ghamal mentioned other options such as constructing direct access between its underground stations and the buildings around it. In order to have such access, again, the building owners need to allocate some money for MRT Jakarta.

With more space appearing alongside the TODs, MRT Jakarta will offer and rent it to business owners, be it small enterprises or big brands.

The company also plans to add more green space to further enhance the view, improve air quality and provide convenience to pedestrians so that more people will walk and use public transportation.

“We are completely aware that, as a train operator, our main business should be the train operation. However, given the new opportunities that arise, we are eyeing TOD as our future main source of revenue,” he added.

Earlier in November, MRT Jakarta president director William Sabandar said the housing at its TOD projects would be sold commercially by prioritizing first-time home buyers.

“That’s why the buyers should be those whose monthly earnings are not more than Rp 18 million [US$1,290] — so that it is affordable for more people,” he said in a media briefing on Nov. 27.

Of the five TODs, William said only the TOD in Istora-Senayan was not suitable for housing. It is located along Jl. Sudirman right across from Gelora Bung Karno sports complex and is surrounded by office buildings.

TOD Dukuh Atas, meanwhile, will be the most attractive spot where various activities combine.

MRT Jakarta has done something there as part of the TOD project. In collaboration with the city administration, it developed a pedestrian-only area by transforming the U-turn at the underpass on Jl. Kendal.

Dukuh Atas is a hub where four public transit services meet, namely MRT Jakarta, the commuter line operated by KAI’s subsidiary PT Kereta Commuter Indonesia (KCI), Transjakarta bus service and Railink airport train.

Hand in hand with MRT Jakarta’s efforts, state-owned KAI has joined in a partnership with state-owned builder PT Perumnas to develop TODs near three commuter line stations, namely Tanjung Barat Station in South Jakarta, Pondok Cina Station in Depok and Bogor Station in Bogor.

Under the TOD projects, Perumnas president director Bambang Triwibowo said the companies planned to build a total of 10 apartment towers — six in Bogor, two in Pondok Cina and two in Tanjung Barat.

“We will build the apartment buildings on KAI’s land and on top of the stations,” Bambang said according to a statement issued on Dec. 19.

“We aim to provide housing that enables people to live efficiently because their homes are integrated with the train station,” he added.

The land for the apartment buildings will cost Rp 6 million to Rp 15 million per square meter. The buyers will get the rights to use it for 30 years — and it can be extended. The TODs will also be equipped with public facilities as well as commercial areas for the tenants to run businesses or to fulfill their needs.

Besides Perumnas, KAI in October also joined hands with state-owned PT Pembangunan Perumahan for a similar project at Juanda Station in Central Jakarta. There will be two towers containing a total of 621 apartments. It is expected to house up to 2,500 people.

In mid-December, MRT Jakarta and KAI signed an agreement on the establishment of a joint venture company which will be tasked with, among other things, developing TODs. The company will be 51 percent owned by MRT Jakarta and 49 percent by KAI.

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