JAKARTA S GREAT LAND TRANSFORMATION: Neoliberal global urbanism & Asian urbanization
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1 JAKARTA S GREAT LAND TRANSFORMATION: Neoliberal global urbanism & Asian urbanization Eric Sheppard and Helga Leitner (with Herlambang Suryono & Liong ju Tjung IUNTAR) Land Academy Conference, Utrecht June 29, 2017
2 INTRODUCTION Jabotabek: 30 million by 2020?
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4 INTRODUCTION Particular case of urban land transformation in postcolonial cities: Prevalent urban informality Periurban development An emergent middle class Aggressive real estate developers International finance seeking to assetize land BUT: Where s the land?
5 OUTLINE 1. The global context 2. Three eras of land transformation in Jakarta 3. Displacing informal settlements & farmland 4. Kampung evictions in the name of ecological security 5. Emergent developments
6 1. THE GLOBAL CONTEXT Peripheral positionality and pervasive informality Neoliberal global urbanism Neoliberalization, Indonesian-style 1. Suharto s New Order ( ): Nationalist Urbanism meets Neoliberalism 2. Reformasi 1 ( ): Democratizing Neoliberal Urbanism 3. Reformasi 2 (2007-present): Rescaling Neoliberal Urbanism Developers: (Chinese)Indonesian conglomerates & some specialist firms Elite informality
7 2. THREE ERAS OF LAND TRANSFORMATION IN JAKARTA
8 1. Nationalist Urbanism meets Neoliberalism ( ) Suharto, the US, post-1980s turn Development trumps the Basic Agrarian Law Cukong-Cendana alliance Large-scale land transfers (izin lokasi) => New Town periurban mega-developments
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11 2. Democratizing Neoliberal Urbanism ( ) Developers debt woes, bankruptcies Middle class stock-market losses Promoting consumption: Shopping Indonesia s way out of crisis Resilient networks of political authority and economic interest (oligarchy persists) Failed Million Houses Program (2003) and 1000 Tower Program (2006) for urban majority DKI Jakarta shopping centre boom
12 Jakarta 2008
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14 3. Rescaling Neoliberal Urbanism (2008-present) Developers: Recovered/bailed out & ready to reinvest Decentralization of power over land transformation to local officials Opportunities for developers Increasing global orientation: Global strategies of Indonesian conglomerates Inward FDI (Japan) Global sources of finance => Era of super-blocks; integrated real estate projects
15 ST. MORITZ 15
16 ST. MORITZ 16
17 MILLENNIUM VILLAGE (LIPPO) 17
18 ORANGE COUNTY 18
19 19
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21 3. Tr Shifting Urban Development Types LAND Acquisition (New Town) SPACE Production 1 (shopping center/mall) PIXEL SPACE V2 (mixed use-superblock) LAND & SPACE V Succession of National Power: Reformation Era shopping center ( ) convenience store: chain-network super block (2007): FARMax vertical new town-horizontal high dense dev. In the center of new town
22 3. DISPLACING INFORMAL SETTLEMENTS & FARMLAND Privatizing urban commons (kampungs) Developers challenge: The market Peri-urban aspects
23 Jakarta 2009
24 Menteng Atas 2013
25 COMPLEXITY OF LAND TENURE RIGHTS Hak milik (freehold) Hak Sewa (right to lease) Hak Pakai (Right of use) Hak buna bangunan (right to commercial use) Adat/Hak Girik (traditional rights)
26 INFORMAL ECONOMY
27 Commodifying The Urban Commons From informal to capitalist market A. PRIVATIZATION: Normalizing property relations
28 De Soto
29 Commodifying The Urban Commons From informal to capitalist market A. PRIVATIZATION: Normalizing property relations B. COMMODIFICATION: Developers responding to middle class demand:
30 INDONESIAN FAMILY CONGLOMERATES
31 Commodifying The Urban Commons From informal to capitalist market A. PRIVATIZATION: Normalizing property relations B. COMMODIFICATION: Developers responding to middle class demand: C. ASSETIZATION: Global finance trawling the globe for investment opportunities
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33 EPICENTRUM
34 34
35 EPICENTRUM DEVELOPMENT 35
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37 Acquisition Progress in Menteng Atas RW 02 May 2014 May 2015
38 Menteng Atas RW
39 Same plot
40 Menteng Atas RW
41 Menteng Atas RW2 Interior walls
42 Jakarta 2013
43 New rental housing
44 PERI-URBAN LAND COMMODIFICATION Development rights Declaring land unproductive Partial process of development New opportunities for kampung residents Farmland loss
45 4. KAMPUNG EVICTIONS IN THE NAME OF ECOLOGICAL SECURITY Illegal kampungs
46 Jakarta 2009
47 World Bank/Indonesia: Jakarta Urgent Flood Mitigation Project,
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49 Kampung Pulo Before
50 Kampung Pulo After
51 August 2015
52 5. EMERGENT MEGA-MEGA PROJECTS Offshore: Dubai-ification of Jakarta Onshore: Meikarta new city
53 GREAT GARUDA SEAWALL + 17 ISLANDS 53
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