International Development Planning Review

Inter-local government collaboration and perceived transaction costs in Indonesian metropolitan transport planning

International Development Planning Review (2010), 32, (2), 167–189.

Abstract

The Indonesian reformation of 1998 marked a fundamental turning point of this country's democracy. In the administrative sector, the so-called Decentralisation Act 22/1999 was enacted to reform a formerly centralistic system. A strong central government used to maintain a hierarchical spatial planning system. It has been overruled, however, by the emergence of equally powered local governments. This paper discusses the relationship between Indonesian decentralisation and the phenomenon of fragmented local governments, which in turn has led to fragmented metropolitan transport planning. Transaction cost theory is utilised given the fact that, since decentralisation, comprehensive metropolitan transport planning relies much on inter-local governments' voluntary collaboration. The success of metropolitan transport planning collaboration is influenced by planning actors' perceived transaction cost. Through the application of Q-methodology in the case of Bandung Metropolitan Area, this article identifies four actors' perception systems. These perception systems accentuate, consecutively, legalistic and cultural local government aspects, the strengthening of local government authority in land-use planning, the establishment of supra-regional institutions, and, finally, socio-economic and political aspects. Findings suggest a provisional support among urban planners, politicians, administrators and legislators for decentralised local government in the field of transportation. However, a further establishment of formalised rules and practices of agreement making aimed at setting compliance and commitment will be essential. Also arrangements for regional strategy-making are deemed essential.

Access Token
£25.00
If you have private access to this content, please log in with your username and password here

ALEXANDER, E. R. (1992), 'A transaction cost theory of planning', Journal of the American Planning Association, 58, 190. A transaction cost theory of planning Journal of the American Planning Association 58 190 Google Scholar

ALEXANDER, E. R. (2007), 'Institutionalist perspectives on planning: why? where? how?', in Niraj Verma (ed), Institution and Planning, Oxford, Elsevier, 37–60. Institutionalist perspectives on planning: why? where? how? Institution and Planning 37 60 Google Scholar

BALL, M. (1998), 'Institution in British property research: a review', Urban Studies, 35, 1501–17. Institution in British property research: a review Urban Studies 35 1501 17 Google Scholar

BROWN, S. R. (1996), 'Q methodology and qualitative research', Qualitative Health Research, 4, 561–67. Q methodology and qualitative research Qualitative Health Research 4 561 67 Google Scholar

BUCKLEY, P. J. and CHAPMAN, M. (1997), 'The perception and measurement of transaction costs', Cambridge Journal of Economics, 21, 127–45. The perception and measurement of transaction costs Cambridge Journal of Economics 21 127 45 Google Scholar

BUITELAAR, E. (2004), 'A transaction cost analysis of the land development process', Urban Studies, 41, 2539–53. A transaction cost analysis of the land development process Urban Studies 41 2539 53 Google Scholar

BUITELAAR, E. (2007), The Cost of Land Use Decisions: Applying Transaction Cost Economics to Planning & Development, Oxford, Blackwell Publishing – RICS Research. The Cost of Land Use Decisions: Applying Transaction Cost Economics to Planning & Development Google Scholar

COASE, R. (1960), 'The problem of social cost', Journal of Law and Economics, 3, 1–44. The problem of social cost Journal of Law and Economics 3 1 44 Google Scholar

DAWKINS, C. (2000), 'Transaction cost and the land use planning process', Journal of Planning Literature, 14, 507–18. Transaction cost and the land use planning process Journal of Planning Literature 14 507 18 Google Scholar

DIXIT, A. K. (1996), The Making of Economic Policy: A Transaction Cost Politics Perspective, Cambridge, Cambridge University Press. The Making of Economic Policy: A Transaction Cost Politics Perspective Google Scholar

EDEN, S., DONALDSON, A. and WALKER, G. (2005), 'Structuring subjectivities? Using Q methodology in human geography', Area, 37, 413–22. Structuring subjectivities? Using Q methodology in human geography Area 37 413 22 Google Scholar

FEIOCK, R. C. (2004), Metropolitan Governance: Conflict, Competition and Cooperation, Washington, DC, Georgetown University Press. Metropolitan Governance: Conflict, Competition and Cooperation Google Scholar

 Google Scholar

 Google Scholar

FURUBOTN, E. G. and RICHTER, R. (1991), 'The New institutional economics: an assesment', in E. G. Furubotn and R. Richter (eds), The New Institutional Economics: A Collection of Articles from the Journal of Institutional and Theoretical Economics, Tubingen, Mohr, 1–32. The New institutional economics: an assesment The New Institutional Economics: A Collection of Articles from the Journal of Institutional and Theoretical Economics 1 32 Google Scholar

HARRISON, A. J. (1977), Economics and Land Use Planning, London, Croom Helm. Economics and Land Use Planning Google Scholar

HEALEY, P. (2006), Collaborative Planning: Shaping Places in Fragmented Societies, 2nd edn, New York, NY, Palgrave Macmillan. Collaborative Planning: Shaping Places in Fragmented Societies Google Scholar

HEIKKILA, E. J. (2000), The Economics of Planning, New Brunswick, NJ, Center for Urban Policy Research. The Economics of Planning Google Scholar

HUDALAH, D. and WOLTJER, J. (2007), 'Spatial planning system in transitional Indonesia', International Planning Studies, 12, 291–303. Spatial planning system in transitional Indonesia International Planning Studies 12 291 303 Google Scholar

JOHNSON, R. A. and WICHERN, D. W. (2002), Applied Multivariate Statistical Analysis, 5th edn – International edition. Pearson Education International, Prentice-Hall, New Jersey. Applied Multivariate Statistical Analysis Google Scholar

KACHIGAN, S. K. (1991), Multivariate Statistical Analysis: A Conceptual Introduction, 2nd edn, New York, NY, Radius Press. Multivariate Statistical Analysis: A Conceptual Introduction Google Scholar

KAIN, J. F. (2004), 'A pioneer's perspective on spatial mismatch literature', Urban Studies, 41, 7–32. A pioneer's perspective on spatial mismatch literature Urban Studies 41 7 32 Google Scholar

 Google Scholar

LOWERY, D. (2000), 'A transaction costs model of metropolitan governance: allocation vs. redistribution in urban America', Journal of Public Administration Research and Theory, 10, 49–78. A transaction costs model of metropolitan governance: allocation vs. redistribution in urban America Journal of Public Administration Research and Theory 10 49 79 Google Scholar

MOERTONO, S. (1981), State and Statecraft in Old Java, A Study of the Later Mataram Period, 16th to 19th Century (Revised Edition), Ithaca, NY, Cornell University. State and Statecraft in Old Java, A Study of the Later Mataram Period, 16th to 19th Century Google Scholar

POULTON, M. C. (1997), 'Externalities, transaction cost, public choice and the appeal of zoning', Town Planning Review, 68, 81–92. Externalities, transaction cost, public choice and the appeal of zoning Town Planning Review 68 81 92 Google Scholar

SAGER, T. (2006), 'The logic of critical communicative planning: transaction cost alteration', Planning Theory 5, 223–54. The logic of critical communicative planning: transaction cost alteration Planning Theory 5 223 54 Google Scholar

SALET, W., THORNLEY, A. and KREUKELS, A. (eds) (2002), Metropolitan Governance and Spatial Planning: Comparative Case Studies of European City-Regions. New York, NY, Taylor & Francis, Inc. Metropolitan Governance and Spatial Planning: Comparative Case Studies of European City-Regions Google Scholar

SEYMOUR, R. and TURNER, S. (2002), 'Otonomi Daerah: Indonesia's decentralization experiment', New Zealand Journal of Asian Studies, 4, 33–51. Otonomi Daerah: Indonesia's decentralization experiment New Zealand Journal of Asian Studies 4 33 51 Google Scholar

SPATIAL AND SETTLEMENT SECTION, WEST JAWA PROVINCE, REPUBLIC OF INDONESIA (2005), Bandung Metropolitan Area Spacial Plan, Bandung, Indonesia. Google Scholar

STAINTON ROGERS, R. (1995), 'Q methodology', in Smith, J. A., Harre, R. and Van Longenhove, I. (eds), Rethinking Methods in Psychology, London, Sage, 178–93. Q methodology Rethinking Methods in Psychology 178 93 Google Scholar

STIGLER, G. J. (1989), 'Two notes on Coase Theorem', Yale Law Journal (December), 99, 631–33. Two notes on Coase Theorem Yale Law Journal 99 631 33 Google Scholar

STOUGH, R. R. (2004), Institutions, Land Use, and Transportation. Handbook of Transport Geography and Spatial System, edited by D. A. Hensher et al., Amsterdam, Elsevier Ltd. Institutions, Land Use, and Transportation. Handbook of Transport Geography and Spatial System Google Scholar

 Google Scholar

 Google Scholar

TAMIN, O. Z. (2005), 'Integrated public and road transport network system for Bandung Metropolitan Area (Indonesia)', Proceedings of the Eastern Asia Society for Transportation Studies, 5, 1281–300. Integrated public and road transport network system for Bandung Metropolitan Area (Indonesia) Proceedings of the Eastern Asia Society for Transportation Studies 5 1281 300 Google Scholar

 Google Scholar

VAN DIJK, K. (2001), A Country in Despair: Indonesia between 1997 and 2000, Leiden, KITLV Press. A Country in Despair: Indonesia between 1997 and 2000 Google Scholar

WACHS, M. (1995), 'The political context of transportation policy', in Hanson, S. (ed), The Geography of Urban Transportation, 2nd edn, New York, NY, The Guilford Press. The political context of transportation policy The Geography of Urban Transportation Google Scholar

WEBSTER, C. J. and LAI, L. W. C. (2003), Property Rights, Planning, and Markets: Managing Spontaneous Cities. Cheltenham, Edward Elgar. Property Rights, Planning, and Markets: Managing Spontaneous Cities Google Scholar

WEST JAWA PROVINCE – EDUCATION BUREAU, REPUBLIC OF INDONESIA (2004), West Jawa Province – Education Bureau 2004 Annual Report, Bandung, Indonesia. Google Scholar

WOLSINK, M. (2004), 'Policy beliefs in spatial decisions: contrasting core beliefs concerning space-making for waste infrastructure', Urban Studies, 41, 2669–90. Policy beliefs in spatial decisions: contrasting core beliefs concerning space-making for waste infrastructure Urban Studies 41 2669 90 Google Scholar

WOOLLEY, J. T. and MCGINNIS, M. V. (2000), 'The conflicting discourses of restoration', Society & Natural Resources, 13, 339–57. The conflicting discourses of restoration Society & Natural Resources 13 339 57 Google Scholar

If you have private access to this content, please log in with your username and password here

Details

Author details

Miharja, Miming

Woltjer, Johan