Development patterns and socioeconomic transformation in peri-urban area Case of Yogyakarta, Indonesia Wisnu Pradoto Technische Universität Berlin ISBN 978-3-7983-2430-5 (Printing-version) ISBN 978-3-7983-2431-2 (Online-version) Berlin 2012 D 83 ∞∞∞∞ Printed on acid-free permanent paper Druck/ docupoint GmbH Magdeburg Printing: Otto-von-Guericke-Allee 14, 39179 Barleben Vertrieb/ Universitätsverlag der TU Berlin Publisher: Universitätsbibliothek Fasanenstr. 88 (im VOLKSWAGEN-Haus), D-10623 Berlin Tel.: (030) 314-76131; Fax: (030) 314-76133 E-Mail: [email protected] http://www.univerlag.tu-berlin.de Contents Contents i Acknowledgement v List of Tables vii List of Figures viii Abstract x Zusammenfassung xi Chapter 1 Introduction: The peri-urban as a new contested arena of urban development 1 1.1. Major related issue 1 1.2. Significance of the study 4 1.3. Theoretical standpoint 6 1.4. Research questions and scope of investigation 7 1.5. Conceptual and methodological approach 9 1.6. Limitation of the works 9 1.7. Chapter outline 11 Chapter 2 Peri-urban development and its implications for governance: a theoretical framework 14 2.1. Urbanization in developing countries and the dynamics of migration 14 2.1.1. Urban growth and urban transformation 15 2.1.2. The determinant of urban and regional changes 19 2.2. Peripheral urbanization and transforming rural spaces 20 2.2.1. Peri-urbanization: a concept and a pattern of development 22 2.2.2. Rural-urban economy and agricultural livelihood changes 24 2.2.3. Settlement transformation and the emerging socio-spatial segregation 25 2.3. Contemporary urban development in Indonesia 27 2.3.1. Problems and challenges of urban land-use planning and management 27 2.3.2. The role of land speculation in peri-urban development 31 2.4. Peri-urban development governance 33 2.4.1. Local government and political economy perspective 34 2.4.2. Growth management: concept and dilemmas 35 i Chapter 3 Research strategy and analysis methods 37 3.1. The relevance of multiple case study strategy 38 3.1.1. Selection of representatively cases 39 3.1.2. Elaborating research questions into operational studies 40 3.1.3. Framework of investigation 41 3.2. Choice and development of research instruments 42 3.2.1. Data collection and analysis for Research Question One 43 3.2.2. Data collection and analysis for Research Question Two 46 3.2.3. Data collection and analysis for Research Question Three 47 Chapter 4 The resulting spatial transformation and land development pattern of peri-urbanization in Yogyakarta 50 4.1. The regional setting and historical background 51 4.1.1. Geographical features and demographic trends 51 4.1.2. Yogyakarta: from a Mataram Kingdom to a Special Region 57 4.2. Dynamics and characteristics of migration 59 4.2.1. Differentiation level of population growth 59 4.2.2. Various motivations and the influencing factors of migration 61 4.3. Spatial development and growth pattern of built-up area 65 4.3.1. Development and growth pattern between 1987 and 1997 66 4.3.2. Development and growth pattern between 1997 and 2007 73 4.3.3. Identifying the tendency of peri-urban growth in Yogyakarta in the future 83 4.4. Modes of land use and space use 101 4.4.1. Mixed land use as a strategy of increasing land use value 102 4.4.2. Mixed space use as a trend of commercialization of space 107 4.5. Typology of new settlement pattern 109 4.5.1. In-between development: a model of small-scale housing 109 4.5.2. Cluster development: spatial fragmentation and social exclusion 112 4.5.3. Self-help housing and the mobility of poverty 115 4.6. Land market within the dynamism of land speculation 119 4.6.1 Farmland: direct negotiation with the farmer or landholder 120 4.6.2 Sultan Ground: property belonging to the Sultanate 125 4.6.3 Tanah Kas Desa: organized under the kelurahan (local authority of village) 128 4.7. Summary of findings 131 ii Chapter 5 The emerging rural-urban economy in Yogyakarta: livelihood 133 adaptation and income generation 5.1. Deagrarianization and the emergence of non-farm livelihoods 136 5.2. Inter-relationship between formal and informal economy 141 5.3. The persistence of local community for sustaining agricultural activities 146 5.3.1. Share-cropping agreement: cooperation between land owner and worker 149 5.3.2. Multifunctional agriculture and land commercialization 150 5.4. New enterprises and its contribution to the rural-urban economy 153 5.4.1. Home-based enterprises and the emerging local entrepreneurship 153 5.4.2. Medium-scale industry and its role in economic development 163 5.4.3. The opportunity to engage in tourism-based activities 171 5.5. Summary of findings 176 Chapter 6 Urban planning and development policy: an examination of peri-urban governance in Yogyakarta 179 6.1. Urban planning and policy 180 6.1.1. Urban Plan as a product of negotiation 181 6.1.2. Urban Plan as a means of determining investment 182 6.2. Land control and community participation in land development 184 6.2.1 Tanah Kas Desa: between public assets and commodities 185 6.2.2 The challenge of Land Development and Building Permit 189 6.3. Fragmented land management and development policy 192 6.4. Summary of findings 194 Chapter 7 Conclusions 197 7.1. Lesson learned: understanding peri-urban development in Yogyakarta 197 7.1.1. The growth pattern and socio-spatial fragmentation 198 7.1.2. Economic change and the development of non-agrarian livelihood 200 7.1.3. The role of local government in driving peri-urban growth 203 7.2. Revisiting peri-urbanization: a reflection on urban growth management 205 7.3. Some ideas for further study 208 Bibliography 209 iii Appendix A Questionnaire for households 216 Appendix B Questionnaire for small industries or home-based enterprises 218 Appendix C Questionnaire for developers or land brokers 220 Appendix D Questionnaire for local government 221 Appendix E List of Respondents 222 iv Acknowledgement Many people have helped me in the course of pursuing my research and writing this dissertation. They deserve my thanks and have my heartfelt appreciation. I am deeply indebted to Professor Peter Herrle, my supervisor, from the Berlin University of Technology who was an invaluable resource during my research and for his being available to discuss it with me at any time, despite his hectic schedule. I owe great gratitude to Professor Adrian Atkinson as well for his valuable contributions and for being the external examiner. His thoughtful comments were always meaningful. Franziska Berger and Marie Neubert most certainly deserve my thanks too for her assistance with many administrative matters during my PhD research and during preparation of the final defense. I am grateful to Dr. Astrid Ley from Habitat Unit – Berlin University of Technology for her input on research methodological approaches, especially on grounded theory strategy. My thanks also go to Carsten Zehner for editing the German translation, and to Josefine Fokdal and Paola Alfaro d’Alencon for their constructive comments given during doctoral colloquiums. I thank particularly Jean Borgatti, PhD, from Clark University who edited my manuscript and increased the readability of this dissertation. During my fieldwork in Yogyakarta, I received much help and advice from Professor Hadi Sabari Yunus and Dr. Sri Giyarsih from the Faculty of Geography, Gadjah Mada University, regarding the current issues of peri-urbanization in Yogyakarta. I also thank Projo Danoedoro, PhD, head of PUSPICS-Gadjah Mada University and Dipo Yudhatama from the Indonesian National Institute of Aeronautics and Space who provided me with spatial data. Special thank go to Ivan Samudera and Ardianto who helped me to analyze the spatial data, and also to Taufiqurohman and some students from the Department of Urban and Regional Planning, Diponegoro University, who helped me in collecting survey data. My empirical data would not have been sufficient without valuable information from official staff members attached to several institutions associated with Yogyakarta local government. The key informants from Bapeda (Local Planning Board) were Kunto Riyadi; Arief Setio Laksito; Ratnani Hidayati along with one person from Badan Pengendalian Pembangunan Daerah or BPPD (Local Development Control Board), namely Agus Subekti. Important local government v officials from Dinas Perdagangan dan Perindustrian (Local Trade and Industry Agency) included Dwiadi Wahyuningsih and Dwi Wulandari. In addition, I owe thanks to the many individuals engaged in the business of property development or who worked in medium- scale industry and home-based enterprises who shared with me valuable information about their economic activities. Part of this research was presented at the 2nd conference of the International Journal of Arts and Sciences at Harvard University, Cambridge, MA. I am indebted to Katolischer Akademischer Ausländer-dienst (KAAD) and Freunde der Technische Universität Berlin, for their assistance with a conference grant. During my doctoral study, I received financial support from the Directorate General of Higher Education, Ministry of National Education, Indonesia, and Katolischer Akademischer Ausländer-Dienst (KAAD), Germany. I would also like to express my appreciation to Dr. Heinrich Geiger and Karin Bialas who not only administered the scholarship, but became real friends during my four years of living in Germany. I also thank Julio David Peláez Solórzano, PhD, my best friend from Guatemala, who helped me in completing the documents required to bring my family to Germany. Last but not least, I am blessed in having a family that has been a long-lasting source of energy during my study in Berlin. My wife Deasy, and my sons, Kevin and Dimas always uplifted my spirits and encouraged me during the exhausting days of working on my dissertation. vi List of Tables Table 3.1 General characteristic of peri-urban growth in Sleman and Bantul 39 Table 3.2 Framework of investigation 43 vii List of Figures Figure 2.1 Indonesia the archipelago country 27 Figure 4.1 Map of distribution of population density in DIY 2006 53 Figure 4.2 Map of projection of population density in DIY 2006 56 Figure 4.3 Map of land-use in peri-urban area year 1987 69 Figure 4.4 Map of built-up area growth year 1987-1997 71 Figure 4.5 Map of built-up area growth year 1997-2007 75 Figure 4.6 Farmland converted to commercial and residential uses 78 Figure 4.7 Conversion of farmland into shop-houses 79 Figure 4.8 Map of land-use in peri-urban area year 1997 88 Figure 4.9 Map of land-use in peri-urban area year 2007 90 Figure 4.10 Small-scale housing in Bantul developed by petty developer 97 Figure 4.11 A plot occupied by petty developer in Bantul 97 Figure 4.12 Paddy field occupied for urban use and gated community 101 Figure 4.13 Possibilities of mixed-land use patterns 102 Figure 4.14 Part of paddy-field rented-out for a restaurant in Sinduharjo, Sleman 103 Figure 4.15 Mixed-land use of residential and commercial in Kaliurang 104 Figure 4.16 Converted farmland for residential estate alongside main corridor 105 Figure 4.17 Small-scale housing occupies farmland in distant area 107 Figure 4.18 Mixed-space use of residential and commercial 108 Figure 4.19 In-between development within the local neighborhood 110 Figure 4.20 Lay-out of a small-scale in-between development housing 111 Figure 4.21 Rental student dormitory in Condong Catur 111 Figure 4.22 Lay-out of in-between housing alongside the local access 112 Figure 4.23 Development of new residential estate along the main road 114 Figure 4.24 An exclusive gated residential estate in Kaliurang 115 Figure 4.25 Lay-out and situation of Self-help Housing 117 Figure 4.26 Self-help housing developed on Tanah Kas Desa in the Village of Sinduharjo 118 Figure 4.27 Small-scale and large-scale conversion of paddy field 123 Figure 4.28 In-between development within the local neighborhood 124 Figure 4.29 Self-help housing developed on Tanah Kas Desa in the Village of Sardonoharjo 130 Figure 5.1 Daily activities in pasar represent the link between formal and informal economy 142 viii