Housing Problem and Suburbanization in Yogyakarta
Housing Problem and Suburbanization in Yogyakarta
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Picture 1. (a) The breakup of Sultanate of Mataram into Sultanate of Yogyakarta and Sunanate of Surakarta under
Giyanti Treaty (Source: Cribb, 2000, p.114); (b) Provinsi Daerah Istimewa Yogyakarta, Kartamantul Metropolitan
Region Includes: City/ Municipality of Yogyakarta, Sleman Regency and Bantul Regency (Source: Widiyanto, 2019).
Under this special autonomy, the sultan of Yogyakarta is appointed as a governor (as opposed
to an election in other provinces) and passed down in hereditary succession within the royal
house. Compared to other provinces, the other special status includes more freedom in
regional governance structure, land reform and agency, culture, and spatial planning (JDIH-
BPK, 2012). The last three components of this special autonomy are essential to understand
Yogyakarta's suburbanization processes. One is that the existence of Keraton Yogyakarta (re:
Sultan’s Palace or the current sultanate entity located in the city) has become an anchor of
strong Javanese culture, cultural heritage preservation, and mentality (Wardani, 2012), which
through time, is sometimes at odds with the globalizing world, where aspects of social living,
beliefs, and cosmology influence the physical space of planning. Secondly, the sultanate
possesses large, fragmented land (called Sultan’s Ground) in and around Yogyakarta, where
its usage is solely on the direction of the sultan. This Sultan Ground is generally unlikely to be
transferred to a private entity (JDIH-BPK 2017), hence preventing private development, which
in turns influence the landscape and processes of suburbanization.
Picture 2. Yogyakarta’s urban sprawl from 1972 – 2013 (Source: Divigalpitiya & Handayani, 2015)
Picture 3. Map of Province of Yogyakarta and Kartamantul (Source: Legates & Hudalah, 2014).
Picture 5. Housing development (highlighted in orange) interspersed between villages, ricefield and agricultural
land in the south of the core urban area (Source: Google Maps)
Owing to its suburban growth, financial instruments and various legal and administrative
directives had to provide enough support to sustain the growth or the mere existence of
suburbanization itself. Housing financialization presented itself through conventional bank
products that cater to mortgages. Some of those cooperate with state-owned enterprises to
provide subsidies to home buyers or special mutual agreements of real estate financing to
make houses affordable. The word 'KPR' (kredit pemilikan rumah) means mortgages are
increasingly becoming a common topic among newly entered workforce's daily chat, implying
the importance of home ownership through housing financialization instruments. As the largest
Muslim country in the world, virtually all the big bank also offers Syariah KPR, meaning a
unique mortgage scheme marketed as adhering to the principle of Islam. Some new housing
clusters of the suburbs are even named with Islamic nuances, such as Muslim Sakinah
Regency and Permata Muslim Regency, which indirectly cement segregation. Additionally, in
contrast to the west where pension funds contribute considerably to house financialization and
mortgages (Aalbers, 2008), the pension fund has only contributed 0,04% of housing and real
estate financing in Indonesia (OJK, 2019). This is due to low financial literacy and a large
proportion of labor work in the informal sector, resulting in a low pension penetration rate,
which in turn made real estate investment from pension funds not feasible compared to other
options (OJK, 2019).
Finally, the governance elements deserve a highlight as the enabler of Yogyakarta's
suburbanization. Kartamantul is one of the many urban agglomerations in Indonesia. The most
famous one is Jabodetabek (Jakarta – Bogor – Depok – Tangerang – Bekasi) or Jakarta
metropolitan area, which is sometimes cited as the second most populous metropolis after
Tokyo (United Nations, 2018). Legates and Hudalah (2014), observed the problem of rural-
urban cooperation in Indonesia, which is the failure of clear sectoral co-direction that
addresses peri-urban issues between administrative jurisdictions. For example, Jabodetabek
has BKSP (Cooperation Development Agency), which consists of 5 administrative jurisdictions
(cities) spread across three provinces oriented to address the urban-suburban problems,
including public service planning and provisions. However, due to its functionality, it was
deemed powerless due to a lack of authority (Dharmaptani & Firman, 1995). Yogyakarta's
Kartamantul, however, is peculiar to the Indonesian case. Kartamantul created a joint
secretariat (Sekretariat Bersama Kartamantul) in 2000 to respond to the rapid expansion of
suburbanization (Sekretariat Bersama Kartamantul, 2001). This secretariat's scope is joined
planning and integrated provisioning of waste and wastewater management, clean water, road,
transportation, and drainage. All above are essential basic infrastructures of living required for
the proper housing development, hence necessities of suburban living.
Consequential from Kartamantul's joint secretariat, the suburbanization processes have
successfully prevented chaotic urban sprawl like the rest of Indonesian suburbs. A single
unitary suburbanization plan is desirable (Legates & Hudalah, 2014). This required a role of
unifying aspect, which can be achieved by political compromise and effective leadership that
unites differing parties.
Conclusions
The process of suburbanization in Yogyakarta is embedded through the economy of tourism,
cultural heritage, and higher education. With a distinction of the absence of mass industry and
disconnection from the global chain of manufactured goods, this suburbanization lacks a
component of Fordist-type of suburbanization which characterizes the rest of Indonesian
suburbs and the global south in general. Instead, a compelling ‘divine’ leadership, in the form
of a Sultanate, far away from western imaginaries, emerges as an anchor of effective
suburbanization governance through the creation of a join secretariat for bare provisioning of
infrastructures and public services. It distinguishes the governance of urbanization processes
from democratic countries, as well as from authoritarian Sultan or King imageries as an
oppressor of their people in developed and developing countries. Perhaps, the takeaway from
this paper is two-fold: first, the global south countries can learn from the implementation of
multi and joint governance of sub (peri) urban areas; second, the west should stop looking
down upon those who refuse western-style democracy as a just king is better than corrupt
democracy. The case of Yogyakarta is the perseverance of indigeneity and local wisdom
against the capitalistic globalized world.
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