Effects of toll road construction on local road projects in Indonesia

Keywords: toll road, local roads, decentralisation, direct effect, indirect effect

Abstract

This study investigates the extent to which the construction of national toll roads in the Jakarta–Bandung region in Indonesia induces the development of local road projects nearby. In doing so, we disentangle the direct and indirect supply effects by considering the year of construction and urban development, respectively. We formulate four binary logit models to examine the direct and indirect relationships between toll road construction and local road projects. The dataset comprises 94 road projects planned or carried out between 2004 and 2016. We conduct interviews with local officials in the Jakarta–Bandung area to obtain data on the projects’ decision-making processes. Our modelling results show that existing and planned toll roads induce the development of local road projects both directly and indirectly. Local road projects tend to be developed in anticipation of the opening of a toll road. The changes in residential area and population around the toll roads also induce local road construction.

Author Biographies

I.G. Ayu Andani, Center for Transport Studies, University of Twente, the Netherlands;School of Architecture, Planning and Policy Development, Institut Teknologi Bandung, Indonesia
PhD Researcher at Center for Transport Studies in the University of Twente and on-leave Lecturer in Institut Teknologi Bandung.
Lissy La Paix Puello, University of Twente, the Netherlands
Assistant professor at Center for Transport Studies, University of Twente
Karst Geurs, University of Twente, the Netherlands
Professor at Center for Transport Studies, University of Twente

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Published
2019-03-11
How to Cite
Andani, I. A., La Paix Puello, L., & Geurs, K. (2019). Effects of toll road construction on local road projects in Indonesia. Journal of Transport and Land Use, 12(1). https://doi.org/10.5198/jtlu.2019.1258
Section
Articles