Transit Region such as Transit Oriented Development (TOD) is typically understood to be a mix of housing, retail and/or commercial development and amenities — referred to as “mixed-use development” — in a walkable neighborhood with high-quality public transportation.
Vibrant regional corridors, such as the one connecting Jakarta and Bandung, have been the backbone of economic developments in Indonesia the last decades. Its ever-changing face supported by rail and on-road transportation modes has formed a much needed advancement to economic and workforce development of the region.
Specific to this corridor, the nation’s capital city and one of leading second-tier cities collaborated in an exciting dynamic of supply and demand that translates well into a fast growing middle-income population built from the rising industrial development, from goods to services. The economy has now grown, and revenues have increased, but so have our overcrowded fleet of public and private transportation - stuck in ever-worsening gridlock. The new and more advance transportation system such as the planned high speed rail will require unprecedented financial cooperation and commitment.
There is no panacea to fix these problems overnight, but there is a solution. Global cities have successfully mobilized funds to develop their transit systems by capturing incremental land values attributed to transit investment. These land value capture schemes were used not only to raise the funds to construct transit but also to develop more sustainable urban spaces.
At Terra Lumen, we deploy effective strategies to assist with reaching the principle target of land value capture, to jointly create value from transit-oriented development, and to share this with stakeholders. This should translates into a new model of economic and workforce development program creating greater public benefits.