Title: Land value capture as breakthrough of financing scheme in urban railway development in Indonesia

Authors: Fery Safaria; Najid; Carunia Mulya Firdausy

Addresses: Faculty of Civil Engineering, Universitas Tarumanagara, Jakarta, Indonesia ' Faculty of Civil Engineering, Universitas Tarumanagara, Jakarta, Indonesia ' Universitas Tarumanagara, Jakarta, Indonesia; Research Centre for Industrial Economics, Services, and Trade, National Research and Innovation Agency (BRIN), Indonesia

Abstract: This study aims at examining whether or not the LVC can be used as an alternative financing instrument in urban railway infrastructure in Indonesia. The results confirmed that the LVC can be a breakthrough scheme in financing the development of urban railway infrastructure in Indonesia. The most urgent aspect to be prepared by the government to implement the LVC scheme in financing the urban railway infrastructure is the availability of regulations. Also, the approach to developing and executing the plan of LVC needs to be based on an assessment of the cost of the benefit analysis, the land value, the market condition of the location, sustainability, and people's participation in urban railway development. Further detailed research to examine the full potential and the benefits of applying the LVC in financing urban railway infrastructure development is needed as Indonesia faces budget constraints and as we move into a post-pandemic recovery.

Keywords: land value capture; LVC; financial scheme; budget limit; urban railway infrastructures; Indonesia.

DOI: 10.1504/IJCIS.2024.136287

International Journal of Critical Infrastructures, 2024 Vol.20 No.1, pp.56 - 71

Received: 13 Feb 2022
Accepted: 17 Jun 2022

Published online: 26 Jan 2024 *

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