Path Dependency and Development Impacts of Megaproject: A Case Study of North Jakarta Bay Reclamation

Abstract

This paper explores the institutional perspective of megaprojects and their transformational impacts. It investigates how institutional design and changes contested by multiple actors over time lead to path-dependent trajectories, resulting in specific development outcomes and impacts within and beyond the megaproject site. The North Jakarta Bay Reclamation (NJBR) megaproject is selected as a case study due to its long-term development and highly political context. Using a qualitative approach, the research applies content analysis to secondary resources such as laws, regulations, policy documents, working papers, and newspapers. Primary data from field observations is also incorporated. The findings reveal that the institutional design of the NJBR megaproject has influenced development paths for both the site and another urban space in the region. Despite the suspension of reclamation activities, institutional path-dependency from previous administrations’ terms resulted in expedited permits and several regulations has allowed the construction to continue on two specific reclaimed islands in the NJBR megaproject. Consequently, as these two reclaimed islands have been developed, bridge infrastructures connecting the mainland of North Jakarta, Tangerang Regency, and parts of the NJBR megaproject have been established, bringing significant impacts on a larger scale. One of the most evident impacts is the increase in land values in different areas due to the established infrastructure networks, exemplifying the impact of path dependency beyond the megaproject. By adopting an institutional perspective on megaproject planning and development, this study enhances our understanding of the contemporary theorization of megaproject impacts. It highlights that transformational impacts are not solely attributable to the creation of megaprojects, but are rather the outcomes of path dependency and institutional change during the megaproject development process.