Analysis of Influential Factors in the Implementation of Land Value Capture in Indonesian Metropolitan Areas

Abstract

The Indonesian government requires relatively large costs to build area and regional infrastructure. One alternative to overcome the development financing gap is by utilizing the increase in land values as a development financing instrument. This article aims to analyze the influencing factors, including the change in spatial use from rural areas to urban areas, building density intensity, norms, zoning regulations on increasing land values and their application to land value capture in the new city area of Moncongloe-Pattallassang in Mamminasata metropolitan area. Obtaining primary and secondary data through surveys and field observations. Meanwhile, data processing and analysis of influential factors uses the Path Analysis method. The results of the research show that changes in the use of space from rural areas to urban areas, the intensity of building density, norms, zoning regulations have a significant effect on increasing land value with a correlation coefficient (R12) of 0.617 and a significant effect in its application to land value capture with an R22 coefficient of 0.381. This study contributes to developing a new aspect in financing the development of urban areas, namely by utilizing increases in land values as a new source of financing to overcome the limited funding for the development of new urban areas.