The Policy Directions to Control Land Use Allocation for Residential Area Through Fiscal Instruments in Depok Municipality
Date
2022Author
Fikri, Arie
Pravitasari, Andrea Emma
Indraprahasta, Galuh Syahbana
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Show full item recordAbstract
Over the last three decades, the population of Depok Municipality has
experienced a significant increase. The residential area development has in
particular become the prime sector in driving Depok’s rapid development, notably
due to its strategic location as a satellite city of Jakarta. This phenomenon has led
to the uncontrolled increase of house selling prices and land-use conversion from
green open lands to built-up areas. Therefore, some efforts should be done to control
the increase of house selling prices and the land-use conversion. One avenue of
government interventions dealing with the negative externalities caused by rapid
residential area development would be by using various fiscal instruments, such as
infrastructure restriction and tax imposition. Against this background, the main
objective of this study is to provide the policy directions to control land-use
allocation for the residential area through fiscal instruments. To this end, three
intermediate objectives are proposed, namely: (1) to identify the determining
factors underlying the house selling price, (2) to analyze the correlation between
the residential area and property tax (PBB-P2) revenue, and (3) to analyze the
comparison of the spatial distribution patterns between the residential area and
PBB-P2 revenue.
In doing so, Ordinary Least Square (OLS) regression and Geographically
Weighted Regression (GWR) were employed to identify the determining factors of
the house selling price. Moreover, Pearson Correlation was used to analyze the
correlation between the residential area and PBB-P2 revenue. Lastly, Global and
Local Moran’s Index were applied to analyze the comparison of the spatial
distribution patterns between the residential area and PBB-P2 revenue. The analysis
of OLS regression reveals that the structural dimensions and locational attributes or
infrastructure contribute significantly in determining the house selling price. The
analysis of GWR shows that the locational attribute, especially distance to the
Central Business District (CBD) of Jakarta, is considered as an effective instrument
to control the house selling price in Depok. In addition, the results from Pearson
Correlation and Local Moran’s Index indicate that PBB-P2 does not play an
effective role as an instrument in steering residential areas in Depok.
Based on the above analyses, the policy directions to control land-use
allocation for the residential area in Depok were formulated, notably by imposing
measures related to restriction of distance to the CBD of Jakarta and by improving
the performance of PBB-P2 revenue. The policy directions can also be locally
applied in the way that every village (kelurahan) in Depok has its specific priority.
For examples, the policy directions for Jatijajar, Tapos, Leuwinanggung, Sukatani,
Cilangkap, Ciampaeun, and Kukusan Villages focus more on improving the
performance of PBB-P2 revenue. On the other hand, Mekarsari Village is directed
to focus more on the restriction of the CBD of Jakarta.
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- MT - Agriculture [3683]