19 February 2018

Government and Private Synergy Needed in the TOD Project

Indonesian Government needs to provide a balanced space between state-owned enterprises and the private sector in developing transit oriented development (TOD) projects or shelter areas integrated with mass transportation modes. This synergy is considered important because the development of the TOD project requires a mature business plan, needs substantial funds, and is done over a long period of time.

This is become on conclusion raised in international seminar entitled “Infrastructure-Led Large Scale Development: TOD, New Town and Affordable Housing” organized by the International Urban Development Association (INTA) in collaboration with Real Estate Indonesia (REI) and Urban and Regional Development Institute URDI) at Raffles Hotel, Ciputra World Jakarta, Wednesday (14/2).

INTA’s Honorary President, Budiarsa Sastrawinata said that the government needs to see that there are long-term value and benefits from all strategic infrastructure projects, especially in the development of affordable residential areas and integrated with mass transportation modes.

According to him, strategic infrastructure projects will create multiple effects ranging from new cities, Light Rail Transit-based cities (LRT), Aero-Polis, integrated tourism areas to a million home programs.

“In the future there should be a clear policy on the duties and responsibilities of government, private and community in this development.I think it is impossible to rely only on the state-owned companies themselves because if they want good results, TOD projects need to be worked together between the government and the private sector,” said Budiarsa who also serves as Director of PT Ciputra Development Tbk.

Member of Indonesia Real Estate Consideration Board (REI), Pingki Elka Pangestu also thinks similarly. It is said that the synergy between government and private in developing TOD project is very important. Thus, the benefits that arise from the TOD project is the added value that can be felt by the community.

“The development of TOD or integrated residential areas takes a long time and requires substantial funds. So this cake is big enough and all we expect each with its strengths and weaknesses. All of that can play a role in producing a much better settlement, as for a city as big as Jakarta, “he said.

(Text by Boni Pramudya, Photo by Gunawan Susanto)

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