Transit-Oriented Development Can Become New Economic Centres, Says Observer

Jakarta (ANTARA) - Transportation observer from Soegijapranata University in Semarang, Central Java, Djoko Setidjowarno, has stated that Transit-Oriented Development (TOD) areas can become new economic centres. “On a meso to micro scale, TOD areas are designed as functional zones with high economic value. TOD transforms stations from mere passenger boarding points into central economic activity hubs,” Djoko said when contacted in Jakarta on Saturday. He added that TOD areas can reduce travel distance and time, thereby facilitating more concentrated business interactions, labour access, and consumer markets. “It relies on developing property, commercial spaces, retail, and commercial leasing around the station to strengthen the finances of operators and the region,” he said. High accessibility, he continued, increases land and property values (Land Value Capture/LVC), which the government can capitalise on through taxes or levies to finance public infrastructure. Additionally, TOD areas reduce public expenditure on fuel consumption and vehicle maintenance, shifting daily spending allocations to other productive economic sectors. For context, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) recently inaugurated the construction of the transit-based Bekasi Extension Station as a strategic step to strengthen connectivity and broaden access to economic activity opportunities. AHY stated that the development of the area, which is part of the Summarecon TOD, is a development approach that integrates transportation, spatial planning, economic activity centres, and community living spaces. According to AHY, the TOD concept must not only provide a more integrated public transport system but also create new spaces for economic activity, delivering a positive impact on business development, the business world, and micro, small, and medium enterprises (MSMEs).