p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 9 September 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 9, September 2024 3663

The Impact of Transit-Oriented Development (TOD) on

Retail Property Rental Value in Jakarta's Block M Area

Aisyah

Universitas Indonesia, Indonesia

Jakarta, the development of TOD has begun to be implemented in several areas, one of

which is Block M. (Heriyanto, 2018).

According to the Central Statistics Agency (BPS), the retail sector accounted for

15.24% of the total GDP in 2016 and absorbed around 22.4 million workers, or around

31.81% of the total non-agricultural workforce (Wildison, 2017). Retail's contribution to

the economy continues to grow every year. According to Aprindo data, the value of

modern retail sales in Indonesia reached Rp205 trillion in 2016, increased by 3.7% in

2017 to Rp212 trillion, and is expected to reach Rp233 trillion in 2018 (Modigliani et al.,

2024). In addition to providing goods and services to consumers, the retail sector also has

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overcome this obstacle, one of the proposed solutions is to implement the concept of

Transit Oriented Development known as TOD. TOD is a development strategy that

focuses on mass public transportation, by integrating mixed land use, high-density, and

pedestrian facilities. The application of TOD can be found in the Blok M area, South

Jakarta. This business and shopping area, which is located in Kebayoran Baru District

and is bounded by Jalan Iskandarsyah, Jalan Bulungan, Jalan Falatehan, and Jalan

Melawai (Mungkasa, 2023), applies the TOD concept by having three main integrated

malls, namely Blok M Square, Blok M Mall, and Plaza Blok M, all of which are less than

400 meters away from the Blok M TOD station (Asfarinal et al., 2022).

TOD emerged as a planning paradigm that emphasizes the role of transportation in

involving mixed-use developments that include residential, retail, and offices. The

general criterion limits the distance from the transit station to no more than 0.5 miles

(about 400 meters) (Harahap et al., 2022). TOD is an integral part of theories that explain

the relationship between the environment and TOD, as well as the exploration of the

concept of sustainability in urban development. In urban development, sustainability,

especially through TOD, is applied to achieve various goals. An increase in property value

is one of the indicators of TOD's success. Factors such as proximity to transit and the

presence of TOD in areas that have experienced early growth are closely correlated with

the increase in property values. Therefore, understanding the impact of transit and TOD

on property value is critical in planning for sustainable urban growth. (Rochman &

area, Jakarta.

This study has a novelty value in the local context of Indonesia because it focuses

on the specific impact of TOD on the rental value of retail properties in Jakarta. Although

the concept of TOD has been widely researched in global cities, this study adds to the

knowledge of how TOD affects the retail sector in Indonesia's fast-growing metropolis.

The study also compares rental prices before and after the implementation of TOD,

Jakarta. With the increasing adoption of TOD as an urban planning strategy, it is

important to evaluate how these policies affect the retail sector which is a vital component

of the city's economy. This research will provide useful data for decision-makers,

developers, and property owners in planning and managing areas that are integrated with

public transportation systems.

The main objectives of this study are to:

1. Analyze the impact of TOD implementation on the rental value of retail properties in

the Blok M area, Jakarta.

2. Identify the factors that affect changes in rental values before and after the

implementation of TOD.

development policies, as well as assist in formulating strategies to improve property

value and transportation accessibility.

2. For Property Developers: Provide data that can be used to plan retail property projects

that are integrated with TOD, as well as understand the potential economic impact of

such developments.

3. For Researchers and Academics: To add insight and literature related to TOD and its

impact on the retail sector, as well as provide a basis for further research in the field

of urban planning and urban economics.

This study is designed to understand the impact of Transit-Oriented Development

(TOD) development on the rental value of retail properties in the Blok M area, Jakarta.

This study applies a qualitative descriptive design that focuses on thematic analysis

to answer research questions about the impact of TOD on the rental value of retail

properties. The design of this study aims to explore the changes that have occurred in the

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understand the relationship between the development of transportation infrastructure and

the dynamics of retail property rental prices, as well as other factors that also affect these

price changes.

Research Location

The location of this research is focused on the Blok M area, Jakarta, which is one

of the largest shopping centers in the city. The Block M area was chosen because it is one

of the areas that has experienced TOD development, with several public transportation

stations such as the MRT that have been integrated with shopping centers. Blok M is a

strategic area for this research because it is located in the heart of the city, surrounded by

various public facilities and commercial centers, as well as its high level of accessibility

in the development of the Block M area. The interview questions were prepared to explore

information related to changes in rental prices before and after the implementation of

TOD, factors that affect price fluctuations, and challenges faced in the process of adapting

to TOD.

Field Observation: Direct observation was carried out at the research site to obtain

visual data and context related to infrastructure development around the Block M area.

This observation also serves as validation of the data obtained from the interview.

Document Analysis: The documents used in this study include property

development reports, retail rental price statistical data, zoning regulations, and urban

development plans related to TOD. This document is analyzed to understand the

to property price dynamics in the Block M area.

Data Analysis

Data analysis was carried out using a thematic coding approach, where data

obtained from interviews, observations, and document analysis were categorized based

on certain themes that were relevant to the research objectives. The main themes analyzed

and "changes in consumption patterns." This coding process helps in identifying common

patterns that emerge from the data, as well as relating them to the research questions

asked.

In addition, the analysis was also carried out with a cause-and-effect approach,

where the relationship between the development of TOD and changes in the rental value

of retail properties was analyzed in depth. This study tries to identify the factors that cause

an increase or decrease in retail property rental prices in the Blok M area, as well as how

these changes are affected by the implementation of TOD.

Research Design

This study uses a descriptive-qualitative design, which means that this research

researchers to delve into the specific phenomena that occur in the area, as well as explore

the unique factors that affect the dynamics of retail property prices.

Data Validation

Data validation is carried out through triangulation techniques, namely by

combining data from various sources (interviews, observations, documents) to ensure that

the research findings are reliable and accurate. In addition, the researcher also validates

by involving stakeholders in the process of preparing research findings, so that the results

of the resulting analysis reflect the reality in the field.

Presentation of Findings

The findings of the study are presented in the form of a descriptive narrative that

Blok M MRT Station Density

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Figure 1 Motion flow

The increase in the density of MRT passengers at Blok M Station has a direct impact

on the rental value of retail properties in the area. Several key factors link passenger

increase in the rental value of retail properties due to the increasing demand for

commercial space. (iii) Accessibility Efficiency, the existence of the MRT which

increases the accessibility of the Blok M area for residents from various areas of Jakarta

makes Blok M a more competitive shopping and business destination. Retail properties

that are close to MRT stations benefit more due to ease of access for customers.

Evaluation of passenger density at Blok M MRT station, based on data on the

number of daily passengers and station area that has been obtained. The average number

of daily passengers at Blok M MRT Station reaches 102,041 people. This information

was obtained from the official report of PT MRT Jakarta (Perseroda) (MRT, 2024). In

addition, the area of the station has also been known, with a length of 175 meters and a

Station is estimated to be around 22.42 people per square meter. With such significant

densities, a good understanding of the number of passengers and the use of stations

development on the rental value of retail properties in the Blok M area, Jakarta, with a

focus on two main shopping centers, namely Blok M Square and Blok M Plaza. The

development of TOD, especially with the Blok M MRT Station, is expected to have a

significant impact on the rental value and occupancy rate of retail properties in this area.

To understand the impact of TOD on the rental value of retail properties, here is a

table that presents data on rental values and the number of units filled in Blok M Square

and Blok M Plaza from 2015 to 2023. This data will be analyzed to see trends and changes

that occur along with the development of TOD in the Block M area.

Table 1

Rental value of Blok M Square property

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have a positive impact on the rental value of retail properties by increasing the

accessibility and attractiveness of the area. However, the existence of external factors

such as the BOT transition period can hinder the potential increase in rental value even

though TOD has been implemented. This can be seen from the rental value data which

shows fluctuations and does not always increase significantly even though it is integrated

with the MRT.

Blok M Square

Blok M Square is one of the major shopping malls in the Blok M area that has

experienced fluctuations in the rental value of its properties from 2015 to 2023. In 2015,

rental prices in Blok M Square were included in the "low to medium" category and

in 2023 from a total of 3,338 retail properties. This shows that the development of TOD

has managed to attract more tenants, which in turn increases economic activity in the

region.

To give you a visual idea, here is a plan of Block M Square showing the layout and

location of the retail units inside: