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THE OPTIMAL PUBLIC PRIVATE PARTNERSHIPS MODEL for TRANSIT ORIENTED DEVELOPMENT Case Study Dukuh Atas, Jakarta, Indonesia

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THE OPTIMAL PUBLIC PRIVATE PARTNERSHIPS MODEL for TRANSIT ORIENTED DEVELOPMENT Case Study Dukuh Atas, Jakarta, Indonesia THE OPTIMAL PUBLIC PRIVATE PARTNERSHIPS MODEL FOR TRANSIT ORIENTED DEVELOPMENT Case Study Dukuh Atas, Jakarta, Indonesia Daniel Azka Alfarobi Supervisors: Ruth L Steiner, Professor William L. Tilson, Professor Christopher Silver, Professor A MASTER RESEARCH PROJECT (MRP) PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ARCHITECTURAL STUDIES WITH A CONCENTRATION IN SUSTAINABLE DESIGN UNIVERSITY OF FLORIDA 2015 © 2015 Daniel Azka Alfarobi 2 To my Family 3 ACKNOWLEDGEMENT This MRP might never have completed without help of many people that gave me contribution with data, information, knowledge and support, which I would like to express my gratitude to all of them. I would like to foremost like to thank my family for their support during this period of my study, in particular to my wife Astriana Harjanti, my son Kimi Rafarel Alfarobi, and my daughter Priyanka Namira Alfarobi. I wish to express my sincere gratitude to Professor Ruth L. Steiner, Ph.D. for the guidance to complete this MRP with useful critiques and encouragement. My deepest thanks also goes to Professor Christopher Silver, Ph.D. FAICP and Professor William L. Tilson who give me an opportunity to study Sustainable Design at University of Florida. To all relatives, friends, and others who in one way or another shared their support, thank you. Last but not least, I gave deepest gratitude to Allah, SWT that made all of this possible. Daniel Azka Alfarobi 4 TABLE OF CONTENTS ACKNOWLEDGEMENT ....................................................................................... 4 TABLE OF CONTENTS ......................................................................................... 5 LIST OF TABLES ................................................................................................... 8 LIST OF FIGURES ................................................................................................. 9 LIST OF ABBREVIATIONS .................................................................................. 10 ABSTRACT ............................................................................................................. 11 CHAPTER 1. INTRODUCTION ............................................................................................ 13 1.1 Background ........................................................................................... 13 1.2 Problem Statement ................................................................................ 17 1.3 Research Objective ............................................................................... 18 1.4 Research Question ................................................................................ 19 1.5 Conceptual Frameworks ....................................................................... 21 1.6 Structure of Master Research Project (MRP) ....................................... 23 2. LITERATURE REVIEW................................................................................... 24 2.1 Public Private Partnerships (PPPs) ....................................................... 25 2.1.1. The Form Scope of PPP ....................................................... 25 2.1.2. PPPs scheme at The United States of America .................... 27 2.1.3. PPPs scheme in Indonesia .................................................... 29 2.1.4. Land Consolidation/ Right Conversions in Indonesia ......... 32 2.2 Transit Oriented Development (TOD).................................................. 33 2.2.1. A transport and land use development challenge ................. 34 5 2.2.2. Principles of Transit Oriented Development (TOD) ............ 36 2.2.3. TOD Implementation Stages in Jakarta ............................... 37 3. RESEARCH METHODOLOGY ....................................................................... 39 3.1 Framework in Methodology ................................................................. 39 3.2 Analytical Hierarchy Process (AHP) .................................................... 41 3.2.1. The Hierarchy Structure ....................................................... 41 3.2.2. Determination of Priority ..................................................... 43 3.2.3. Respondent/Expert Selection ............................................... 49 3.3 Cost Benefit Analysis ........................................................................... 50 4. GENERAL DESCRIPTION OF STUDY AREA .............................................. 52 4.1 MRT Development in Jakarta ............................................................... 54 4.2 Transportation Condition in Jakarta ..................................................... 57 4.3 Demography condition in Jakarta ......................................................... 59 4.4 Economic Condition in Jakarta ............................................................. 61 4.5 Alternative PPPs Concept at Dukuh Atas Area .................................... 65 5. ANALYSIS ........................................................................................................ 70 5.1 Transit Oriented Development at Dukuh Atas ..................................... 71 5.2 Benefit Cost Analysis ........................................................................... 73 5.3 Analytical Hierarchy Process (AHP) .................................................... 81 6. DISCUSSION .................................................................................................... 84 7. RECOMMENDATION AND CONCLUTION ................................................. 85 APPENDICES 1. Pairwise Comparison Questioner ...................................................................... 86 6 2. Recapitulation Data of Questioner .................................................................... 91 3. Benefit Cost Analysis Calculation ..................................................................... 97 4. Analytical Hierarchy Process Calculation ......................................................... 108 REFERENCES ......................................................................................................... 112 7 LIST OF TABLES Table 2.1 Comparison Function between Urban and Neighborhood TOD ............. 34 Table 2.2 Staging of Rail-Based TOD Implementation in Jakarta .......................... 38 Table 3.1 Pairwise Comparisons Matrix ................................................................. 44 Table 3.2 Comparative Assessment Scale .............................................................. 45 Table 3.3 Random Consistency Index (RI) ............................................................. 48 Table 4.1 Total Population and Population Density based on Census Results in 2010 and Projected Population in 2014 according to the Municipality/Regency ............................................................................. 60 Table 4.2 GRDP at Current Market Prices by Industrial Origin of DKI Jakarta (Million Rupiah), 2007-2013 ................................................................... 63 Table 4.3 GRDP at 2000 Constant Prices by Industrial Origin of DKI Jakarta (Million Rupiah), 2007-2013 ................................................................... 64 Table 4.4 Advantage and Disadvantage of BOT Model in the Context of TOD at Dukuh Atas ....................................................................................................... 66 Table 4.5 Advantage and Disadvantage of Right Conversion Model in the Context of TOD at Dukuh Atas ............................................................... 68 Table 5.1 Average CoLF 2007 – 2014 .................................................................... 75 Table 5.2 Size of the Building................................................................................. 76 Table 5.3 Underground and Artificial Ground Development’s Cost ...................... 76 Table 5.4 Occupancy Rate ...................................................................................... 78 Table 5.5 BOT Model (NPV and IRR Analysis) .................................................... 79 Table 5.6 Right Conversion Model (NPV and IRR Analysis) ................................ 80 Table 5.7 Weight of sub Hierarchy Benefit and Cost ............................................. 81 8 Table 5.8 Overall Weights of Criteria ..................................................................... 82 Table 5.9 Benefit Sub Hierarchy Economic (Alternative Priorities) ....................... 82 Table 5.10 The Optimal PPPs model from AHP Analysis ...................................... 83 9 LIST OF FIGURES Figure 1.1 MRT Station – Phase 1 ........................................................................... 15 Figure 1.2 Conceptual Framework ........................................................................... 21 Figure 2.1 PPPs Regulation Diagram in Indonesia .................................................. 30 Figure 2.2 The Basic Correlation between Car, Transit and Walking Environment ............................................................................ 35 Figure 3.1 Framework in Methodology ................................................................... 40 Figure 3.2 AHP Hierarchy Structure ........................................................................ 42 Figure 4.1 DKI Jakarta Map..................................................................................... 53 Figure 4.2 Map of South to North MRT Line .........................................................
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