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

Miming Miharja*, Johan Woltjer

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)


The Indonesian reformation of 1998 marked a fundamental turning point of this country's democracy. In the administrative sector, the so-called Decentralisation Act 22/1999 was enacted to reform a formerly centralistic 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 paper discusses the relationship between Indonesian decentralisation and the phenomenon of fragmented local governments, which in turn has led to fragmented metropolitan transport planning. Transaction cost theory is utilised given the fact that, since decentralisation, comprehensive metropolitan transport planning relies much on inter-local governments' voluntary collaboration. The success of metropolitan transport planning collaboration is influenced by planning actors' perceived transaction cost. Through the application of Q-methodology in the case of Bandung Metropolitan Area, this article identifies four actors perception systems. These perception systems accentuate, consecutively, legalistic and cultural local government aspects, the strengthening of local government authority in land-use planning, the establishment of supra-regional institutions, and, finally, socio-economic and political aspects. Findings suggest a provisional support among urban planners, politicians, administrators and legislators for decentralised local government in the field of transportation. However, a further establishment of formalised rules and practices of agreement making aimed at setting compliance and commitment will be essential. Also arrangements for regional strategy-making are deemed essential.

Original languageEnglish
Pages (from-to)167-189
Number of pages23
JournalInternational Development Planning Review
Issue number2
Publication statusPublished - 2010



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