LAND COMMODIFICATION IN THE PERI-URBAN AREA OF NEW CAPITAL CITY

• Main Author: Muhtadin, Ruhkhis
• Format: Theses
• Language: Indonesia
• Subjects: Perencanaan wilayah
• Online Access: https://digilib.itb.ac.id/gdl/view/81887
• Institution: Institut Teknologi Bandung

The phenomenon of moving the capital city of Indonesia, entitled the Ibu Kota Nusantara (IKN), from Jakarta to Kalimantan Island has created a new large-scale activity center in its peri-urban area. The high demand for land in peri-urban areas encourages land users and owners to commodify land. Commodification is a process in which objects become tradable and transacted in the market, so efforts are needed to modify goods, services, or attributes so that they have value. Land commodification in IKN is triggered by government programs and policies (government-led development) in the form of new city development and its infrastructure. There are very few studies on how land commodification, financial instruments, and forms of land expropriation are carried out in the Global South. The basic theoretical framework used in this research is the commodity circuit sees that commodity status is the result of a space-time trajectory and thus provides insight into why certain objects and attributes become commodities. This research aims to examine and explain the characteristics, forms, and processes of land and housing commodification in the IKN peri-urban area. This research was conducted qualitatively with an explanatory presentation. Data collection was conducted primarily through interviews and observations. The focus of this research delineation is on Sepaku Sub-district and the outer boundary of the IKN delineation. The typology of peri-urban areas into 3 (three) types based on the characteristics of commodification and development patterns that occur. The study findings show that almost all community land is former transmigration program land and there is large land available for commodification. Community commodification is triggered by the pull of IKN development activities. Forms of commodification that occur include renting, building business premises, and marketing lots. In addition, there are also land transaction activities carried out informally using a sale and purchase agreement. The investment tap is wide open as an effort to financialize the area which is indirectly a form of large-scale land commodification in the free market. Spatially, it can be seen that the dominance of new development is linear to the main road corridor. Land commodification efforts undertaken by the community depend on how much initial capital they have and their entrepreneurial motivation. From the production side, the commodification process is constrained by the supply of labor and building materials that are still relatively difficult to access. Meanwhile, from the marketing side, the results of land commodification are expected to be absorbed by migrants and investors who will increasingly inhabit the IKN delineation. The regulatory review set by the government in the IKNv delineation in the form of a land freeze can only prevent the legalization of land transactions and cannot limit buying and selling activities. In general, regulations in the development of IKN, both in terms of land and spatial planning, are still dynamic, leading to speculation in the form of commodification. Furthermore, at every level, actors in IKN do not get good socialization regarding rules, regulations, and standard procedures, so that commodification is more sporadic. On a broader scale, to prevent urban sprawl, OIKN is committed to encouraging cooperation with buffer zones to synergize in spatial control and zoning plans.