Increase in land value due to spatial transformation in the northern part of the Bandung – Cimahi peri-urban region

Abstract

The increase in density and urban activity has led to spatial expansion towards the urban periphery. Peri-urban areas that originally were rural areas, gradually turn into typical urban settlement areas. This transformation is followed by an increase in economic land value which is characterized by an increase in land price. This study examines the meaning of the increase in economic land value for the government as an effect of the spatial transformation in the periphery area of Bandung City and the northern part of Cimahi. This study uses quantitative-qualitative mixed methods. Primary data was obtained through interviews with informants from local communities, and secondary data was obtained from a former study on this area and Land and Building Tax documentation (PBB). For the government, economic land value specifically will be reviewed using the Land-Tax Object Sales Value (NJOP Tanah), and then compared with the increase in market price of land. The study results show that the increase of land price due to the spatial transformation in the Gunung Batu Dalam area was not in line with the increase in land value for local governments. The increase in land prices determined by market forces becomes a potential loss of revenue for local governments. Therefore, the government needs to control the increase in land prices. If not, then the government should immediately adjust the Land-Tax Object Sales Value to represent the economic land value of peri-urban areas.