Inter-local government collaboration and perceived transaction costs in Indonesian metropolitan transport planning

Abstract

The Indonesian reformation of 1998 marked a fundamental turning point of this country's democracy. Inthe administrative sector, the so-called Decentralisation Act 22/1999 was enacted to reform a formerlycentralistic system. A strong central government used to maintain a hierarchical spatial planning system.It has been overruled, however, by the emergence of equally powered local governments. This paperdiscusses the relationship between Indonesian decentralisation and the phenomenon of fragmented localgovernments, which in turn has led to fragmented metropolitan transport planning. Transaction cost theoryis utilised given the fact that, since decentralisation, comprehensive metropolitan transport planning reliesmuch on inter-local governments' voluntary collaboration. The success of metropolitan transport planningcollaboration is influenced by planning actors' perceived transaction cost. Through the application ofQ-methodology in the case of Bandung Metropolitan Area, this article identifies four actors' perceptionsystems. These perception systems accentuate, consecutively, legalistic and cultural local governmentaspects, the strengthening of local government authority in land-use planning, the establishment of supra-regionalinstitutions, and, finally, socio-economic and political aspects. Findings suggest a provisionalsupport among urban planners, politicians, administrators and legislators for decentralised local governmentin the field of transportation. However, a further establishment of formalised rules and practices ofagreement making aimed at setting compliance and commitment will be essential. Also arrangements forregional strategy-making are deemed essential.

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