Developing Mobile Application for Land Value Capture Scheme to Finance Urban Rail Transit Projects
Land value capture (LVC) has shown great potential in financing urban rail system infrastructure, such as transit-oriented development (TOD). However, the government of Indonesia has not tapped this potential in order to close its infrastructure financing gap. This study aims to determine the in...
Main Authors: | , , , , |
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Format: | Article |
Language: | English |
Published: |
Universitas Indonesia
2021-12-01
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Series: | International Journal of Technology |
Subjects: | |
Online Access: | https://ijtech.eng.ui.ac.id/article/view/5332 |
Summary: | Land
value capture (LVC) has shown great potential in financing urban rail system
infrastructure, such as transit-oriented development (TOD). However, the
government of Indonesia has not tapped this potential in order to close its
infrastructure financing gap. This study aims to determine the incremental rate
captured through a tax-based LVC mechanism and develop a property market-based
mobile application to implement the scheme, with six TOD areas in seven
stations of the Mass Rapid Transit (MRT) Jakarta Phase I project
as the case study. This research used literature and benchmarking studies to
collect data, followed by the calculations of the transport premium, total
value increment, and value capture rate for the betterment tax implementation
to obtain its research objectives. The results showed that a 5.82% value
capture rate could recover 53.8% of the government's initial investment for the
project. Based on that figure, betterment tax rates of 0.3% and 0.1% are
proposed for residential properties within the radius of 100-400 m and 400-700
m from transit stations, respectively. Meanwhile, 2.5% and 2.4% tax rates are
proposed for commercial properties within the radius of 0-300 m and 300-600 m,
respectively. Furthermore, the activity workflow for a mobile application in
which the government can issue tax invoices and taxpayers can make payments is
also proposed to facilitate the implementation of LVC as an alternative source
to finance TOD projects. |
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ISSN: | 2086-9614 2087-2100 |