Kasiba Driyorejo, a Solution to Urban Development Large Scale Land Management of Urban Areas in Eastern Java

Abstract

Land is the necessities for human life and it is also one of the economic factors for production. Indonesia is a liberal country specifically in economic area, although the Indonesian government constitutional law no. 33 year 1945 said that “The land, air and all the natural resources are under the government authority for the sake of public interests”1 but in practice, for economic development reasons the land became one of the free market objects as a consequences for this matter it attracted many investor both from overseas and domestic. The disadvantage of this situation is sometimes attracts speculators in this case, the land speculators. This situation in

the future could cause the low -income people to not having the opportunity to buy the land as a based to construct a better house.

In the beginning of the 1990s the idea of developing land banking management start to emerge. To solve this problem, the government of Indonesia in this case the Ministry of Infrastructure and Settlement came up with the “Kasiba” idea or in English “Pre Developed Areas”. This solution has been constitutionally declared with the government act No. 80 year 1998. The acts intend to manage the land better and to prevent it from speculators interference.

The Kasiba project is located in Surabaya city. The project called Driyorejo Kasiba Project. Surabaya as the second largest cities beside Jakarta is the main gate of central distribution for eastern Indonesia, which is developing into central trade, economic area, information, production and distribution. Surabaya is also has a large seaport which handles the trade goods from all over the world. As the consequences, support of infrastructure, facilities, and public utilities are in need. The recent implementation of the new authority decentralization policy for every province in Indonesia means the bigger Region/county authority, causing the need for new regulation of lands law, facilities and infrastructure so the optimum regional development could be achieved.

The government as the regulator and facilitator for the main course and strategies, should oriented to people welfare. Perum Perumnas or National Urban Development Corporation as a state owned company along with the other state owned counterpart, from the beginning had covered the above issues by developing the New Area Policy the “Driyorejo New Town” in east java province. The main objects of this consortium are to help the region authority to provide lands. The management considering the land development policy which is constructed with holistic pattern and. The Kasiba project is a large -scale project it has minimum requirements for the dwellings only to 3.000 units. This project also intended to develop a new town with

central business district (CBD) with good infrastruct ure facility.