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PL4105 Development Control

INTRODUCTION to
2.1 DEVELOPMENT
CONTROL

Denny Zulkaidi
Sugiyantoro

Undergaduate Program in Urban and Regional Planning


School of Architecture, Planning, and Policy Development
Institut Teknologi Bandung
2022
Week 4
OBJECTIVES

Students are to explain the ideology of planning law correctly and


the ideology of planning law applied in Indonesia
able:
to describe the meaning and scope of development and

PL4105 DZ/22 - 2.1 Concept of Development Control


non-development

to explain comprehensively the rationales of development


control

to describe concerns and legal bases of development


control, and objects to control

to describe the basic types of development control

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Week 4
• What is the philosophy of planning law? – definition
• What is development and not development? – definition,, scope
• Why controlled? – rationales, justification
What is the constitutionality of control? – constitutional bases

PL4105 DZ/22 - 2.1 Concept of Development Control



COURSE • What are the concerns of control? – purposes
CONTENT • What should be controlled? – components
• What are the types of control instruments?
 Regulatory – discretionary
 Promotion – restriction
 Public law – private law

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Week 4
IDEOLOGY of PLANNING LAW
(McAuslan 1980)

Private property • To protect private property and its institution


ideology • Traditional common law approach

Public interest • To advance the public interest, if necessary against the

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ideology interest of private property
• Orthodox public administration and planning approach

Public • Democracy and justice ideology


participation • To advance the cause of public participation against both
ideology the orthodox public administration approach to the
public interest and the common law approach of the
overriding importance of private property
• Radical or populist approach

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Week 4
Pembangunan Nasional:
upaya yang dilaksanakan oleh semua komponen bangsa
dalam rangka mencapai tujuan bernegara

(UU No. 25/2004, ps 1 angka 2)

Development:
DEFINITIONS “the carrying out of building, engineering, mining, or

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other operations, in, on, over, or under land” and “the
of making of any material change in the use of any building
DEVELOPMENT or other land” (Town & Country Planning Act, 1962, s. 22(1)).
(almost similar definitions are also used by many Commonwealth
Countries, e.g. Australia, Singapore, Canada, India, etc.)

Important elements of development:


 operational
 change of use
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Week 4
“the construction, erection or placing of one or more
buildings or structures on land or the making of an
addition or alteration to a building structures that has
the effect substantially increasing the size or usability
thereof, … (Planning Act Revised Statutes of Ontario, 1990, Chapter P.13

PL4105 DZ/22 - 2.1 Concept of Development Control


(Consolidated 1998, s.41))

Kegiatan mendirikan, memperbarui atau mengubah


seluruhnya atau sebagian, memperluas, memperbaiki,
memelihara dan mengubah pekerjaan bangunan-
bangunan yang biasa (SVO, Staatblad 1948 No. 168, ps. 1),

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Week 4
Operational development:
physical alteration to the land by human being

• Building :
 “any structure or erection and any part of a building as so
defined, but does not include plant or machinery compromised
in the building”

PL4105 DZ/22 - 2.1 Concept of Development Control


Operational  Operations include “alterations to and renovation of a building”
development • Engineering:
 Civil engineering activities “in, on, over, under land”

• Mining:
 Removing of any materials/substance from the land

• Other operations:
 Other physical acts

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Week 4
Material change of use:
 A change of use becomes material when:
 Physical (as opposed to mental)
 Substantial

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 Relevant (to the purposes of planning legislation)
Material
 Without any physical alteration to the land
change of use  Nature of a use includes:
 change in “kind” (new activity),
 change in “degree” (intensification)
 Discontinuance (abandonment, displacement)
 Multiple uses (ancillary uses, concurrent uses)

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Week 4
Acts which are considered not development:
1. “maintenance, improvement or other alteration” of a building
Development interior which does not affect external appearance

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without 2. Maintenance work by certain public authorities
planning 3. ”use within the cartilage of a dwelling-house for any purpose
permission incidental to the enjoyment of the dwelling house as such”
4. The use of any land for agriculture or forestry purposes
5. The uses of buildings within similar class

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Week 4
Rationales:
• Police power of government

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• private domain vs. public rights
Why controlled? (public control over private property)
• Individual benefit vs. social cost
• Economic reasons (efficiency, bankruptcy)
• Moral reasons (adult entertainment)

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Week 4
NIMBY “not in my back yard”

LULU “locally unwanted land use”

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NOPE “not on planet earth”

NIMTO “not in my term of office”

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Week 4
BACKGROUND:
 Development implementation at the national and local levels
should conform with the adopted [detailed] spatial
plan and zoning regulation
 The implementation of development in practice does not
conform the spatial plan, while zoning regulation has
not been enacted yet

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• Spatial plan is compromised
DEVELOPMENT through technical,
PROBLEMS operational,
administrative/political,
and market mechanism,
and lack of reference to the
plan
• The changes of land use occur
because of unfair and
inconsistent treatments to
their negative externalities
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Week 4
PROBLEMS
• Tingginya tingkat urbanisasi disertai keterbatasan ruang.
• Cepatnya peningkatan harga lahan (lahan menjadi komoditas
yang menguntungkan secara ekonomi).
Development

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• Terbatasnya sistem informasi lahan mengurangi
problems kemampuan pengendalian pemanfaatan ruang.
• Belum tepat dan belum terpadunya strategi pengembangan
lahan.
• Ketidaklengkapan dan ketidakjelasan rujukan
pengendalian (peraturan zonasi, perizinan,
insentif/disinsentif, sanksi, pengawasan, penertiban), baik
teknis maupun prosedur

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Week 4
• Kurang padunya ketentuan dari setiap instansi yang
berkaitan dengan pemanfaatan ruang maupun
pengendaliannya, sehingga proses pengendalian tidak berjalan
secara sistematis, tumpang tindih, tidak efisien dan tidak
efektif.

PL4105 DZ/22 - 2.1 Concept of Development Control


Development • Kurangnya jumlah, pengetahuan, pemahaman dan kompetensi
problems aparat untuk menangani pengendalian secara rutin

• Kurangnya kegiatan rutin dalam pengawasan pemanfaatan


ruang

• Kurang tegas dan konsistennya penertiban pemanfaatan


ruang

• Kurangnya pemahaman dan ketaatan dari masyarakat untuk


mengikuti ketentuan dan prosedur yang ditetapkan.

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Week 4
• kewenangan untuk mengarahkan, memerintah (Oxford, 1995).
Control • segala usaha untuk menjamin dan mengarahkan suatu
kegiatan agar pekerjaan atau kegiatan yang sedang
dilaksanakan dapat berjalan sesuai dengan rencana yang telah
ditetapkan

Development A mechanism consisting of different instruments to assure

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control development and plan implementation are carried out in
accordance with the adopted spatial plan and zoning regulation

Purpose To assure consistent implementation with the adopted


spatial plan and zoning regulation is achieved

Conditions for • High quality of plans,


effective and • Complete and clear control instruments
efficient • Accurate information of prevailing development practices
control • Firm and consistent enforcement
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Week 4
• To realize justice/fairness, reduce conflicts and
negative impacts of land uses, assure efficient,
effective and conforming development with the
function of the city, and be consistent with spatial
Local

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plan.
Government
Obligations • Local Government has both functions as
development controllers and developer

• Local government obliges to perform public


participation in land development and land use
control.

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Week 4
1. Public safety
2. Public health
3. Security
Concerns 4. Convenience
of Control

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5. Efficiency
6. Aesthetics
7. etc

Any act compromising those concerns


should be controlled

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Week 4
• The state has the right to control over
land, water and space, and to develop them
(UU No 26/2007)

The state has the power to regulate and to


CONSTITUTIONAL •
plan the use of land (UU No 26/2007)

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FOUNDATIONS
of DEVELOPMENT • Constitutional foundations of development
control include:
CONTROL  Bundles of right (UU No 5/1961)
 Police power (UU No 23/2014, UU No 26/2007)
 Taxation (UU No 28/2009)
 Eminent domain (UU No. 20/1961, UU No. 2/2012)
 Spending power (UUD1945, UU No. 17/2003, UU No.
25/2004)

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Week 4
Definition (Steiner and Buttler, 2007: 348):
The power to regulate rights on land, legal relationships between
people/institution to land, and legal acts with respect to land.
1.

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• The collective property rights held by individuals and entities
Bundle to own and use land
of Rights • The bundle is the sum total of the rights pertaining to property
ownership.
• Bundle of rights consist of:
• Property ownership rights
• Public property rights

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Week 4
BUNDLE of
RIGHTS

PRIVATE PROPERTY PUBLIC PROPERTY


RIGHT RIGHT
The bundle is the sum total of the The bundle of rights also
rights pertaining to property
embraces public rights:

PL4105 DZ/22 - 2.1 Concept of Development Control


ownership, including:
• Quiet enjoyment of the • to tax or assess the
property. • to control its use and
• Occupy the property and eclude development,
others.
• Sell, lease, donate, or bequeath • to acquire it for public use
the property. (with just compensation)
• Mortgage the property or grant • etc.
easements.
• Subdivide the property or build
and remove improvements.
• Control the property’s use
within the law.
• etc = POLICE POWER

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Week 4
• Public power in bundle of rights includes:
 To regulate and to carry out zoning, use, provision and

PL4105 DZ/22 - 2.1 Concept of Development Control


maintenance of land, water and space
 To determine and regulate legal relationships between
people and land, water and space
 To determine and regulate legal relationships between
people and legal acts concerning land, water and space

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Week 4
The rights of government to establish laws and
ordinances to preserve public order and tranquility and
to promote the public health, safety, morals and general
welfare (Steiner and Buttler, 2007)

2.

PL4105 DZ/22 - 2.1 Concept of Development Control


• The power includes authorities to regulate, supervise, and
control development on, in, over, and under land, and people
activities on land
Police • Police Power basically applies restrictions to development and
Power people activities, and may be considered as ‘limitation on private
property/ individual rights’.
• must be used reasonably and fairly.
Purposes:
a. To promote public purpose (order, defense)
b. To protect public interest (e.g. health, safety, security, moral,
etc).
c. To ensure general welfare (employment, minimum wages, etc)
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Week 4
Police power as the bundle of public property rights:
• to impose rules and regulations on individuals and on a
property owner’s use of privately owned land

PL4105 DZ/22 - 2.1 Concept of Development Control


• to adopt zoning regulations that prohibit the operation of
industry and other noisy or noxious businesses next to schools
and neighborhoods
• to make or a keep a city beautiful, as well as healthy.
• E.g. to regulate community appearance, including using
zoning and land development regulations to control signs,
billboards, planting, and the appearance of buildings; and to
preserve and protect historic landmarks and sites

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Police Power

Week 4
of the State

Police Power
of Local Governments

Exercised by Local Govenrment Regulations must be:


by: • tied to a valid public purpose
(substantive due process), and

PL4105 DZ/22 - 2.1 Concept of Development Control


• imposing rules and • enacted and implemented so those
regulations on individuals and directly affected have a
on a property owner’s use of meaningful opportunity to
privately owned land. E.g. stop participate (procedural due
signs and zoning regulations process).

the power of Local Government


to:
• plan, zone property, control the
subdivision of land, regulate the
construction of buildings, and
exercise other land-use controls.
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Week 4
Police power instruments:
• Under written law;
• fairness and uniform procedure;
• Land-use regulations (Steiner and Buttler, 2006):
 restrict private property rights to protect the public’s health,
safety, morals, and general welfare.
 involve a balance—and often conflicts—both between private and
public property rights and among private rights

PL4105 DZ/22 - 2.1 Concept of Development Control


• Examples of instruments:
 zoning; subdivision regulations; official maps; building codes;
health codes; fire codes; business licensing; aesthetics control,
preservation, signage control, demolition control, flood area
control, etc
Examples of restrictions and control:
a. Restriction of certain activities in a certain location.
b. Transfer restriction of ownership which does not conform the owner
(right restriction/expropriation)
c. No compensation to landowners
d. Nuisance control (Hinderordonnantie)

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Week 4
• The power of government to take over land or to
expropriate the rights on land within its authority for
public purposes, with just compensation
• The power of the government to take property for public
3.

PL4105 DZ/22 - 2.1 Concept of Development Control


use with just compensation (Steiner and Buttler, 2007)

Eminent
Domain Purposes:
a. To avoid discrimination and arbitrariness.
b. To prevent self-enrichment through government action.
c. To ensure fairness in allocating cost for public interest

This instrument should be avoided when possible


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Week 4
Ketentuan dasar pencabutan hak atas
lahan:

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 Alasan substantif yang dapat diterima
masyarakat atas dasar kepentingan umum
 Mendapat kompensasi yang layak
 Mengikuti prosedur dan mengenakan perlakuan
hukum yang sama dan adil
 diatur oleh peraturan-perundangan

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Week 4
• The power to apply burden/charge or levy
which is based on legal obligation to
individual/group or landowner for public
purposes
• The charge is only for public interest; not enjoyable
directly; compulsory in nature; non-discriminative.

4.

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Functions:
 Instruments for revenue:
Taxation  Instruments for control:
 Control land speculation
 Restrict urban sprawl
 Control land use change

taxation is not only for revenue, but also a


management instrument for regulating
desired or undesired activities.
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Week 4
The power to spend public fund/budget for public interest.

5.

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Purposes:
a. To direct growth and influence economic activities.
Spending b. To create or control access.
Power c.
d.
To attract private investment.
To preserve excellent visual and create open public space.
e. To reserve land for future development.
f. To reduce excessively high land cost and land price.

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Week 4
Subject matter to control:
• Activities
WHAT

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• Land uses
SHOULD BE
Intensity
CONTROLLED? •

• Physical structures and infrastructure


 Building, fences
 Street, parking, drainage, etc.
• Appearance

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Week 4
• Activity/Land Use
 Minimize conflicts between uses (negative externalities)
 Maximize inter-use benefits
 Location

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• Timing of development/redevelopment
What should
be controlled? • Provision of the necessary infrastructure
(Patterson 1979: 195)
• Community appearance
 historic/aesthetically significant structures and sites,
 character/aesthetically pleasing old neighborhoods,
 richness of variety in new development/redevelopment
• Means of economic compensation
• Physical design adequacy of new development, and
maintenance of the quality of the built environment
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Week 4
Ownership and
property right:
• right holder does not necessarily “a simple rule for a
the owner
• In bundles of rights on a single
complex world”
property, owner has the priority.
• Limitation on individual property
ISSUES IN

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DEVELOPMENT
CONTROL
Discrimination, bad
To what extent
faith/fraud,
development is limited,
unreasonableness,
and to what extent
unlawful delegation,
freedom is given
uncertainty

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Week 4
PROPERTY RIGHT dan DEVELOPMENT RIGHT

RIGHTS
(Hak)

PROPERTY DEVELOPMENT

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RIGHT RIGHT
(Hak atas Tanah) (Hak Membangun)

Hak yang rnenjamin negara, individu Hak untuk membangun,


dan perusahan untuk memiliki/ memanfaatkan ruang/lahan
menguasai lahan didasarkan atas
perangkat hukum

HM, HGU, HGB, HP, Hak Sewa untuk IPPT, IMB, SITU, IUUG, Izin Lokasi,
Bangunan, Hak Membuka Tanah Hak SIUP, Izin Usaha Parwisata, dll
Memungut Hasil Hutan, Hak lain (hak
gadai, hak usaha bagi hasil, hak
menumpang dan hak sewa tanah pertanian)
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Merujuk pada:

Week 4
→ Peraturan Perundangan terkait dengan
Penataan Ruang
→ Peraturan Perundangan terkait
Merujuk pada: lingkungan
Undang-undang agraria → Peraturan Perundangan terkait bangunan,
dll
Property
Right
≠ Development
Right

PL4105 DZ/22 - 2.1 Concept of Development Control


• Individual/community Local Government grants
• Corporate permits and licenses
• State

Prohibited to Develop
without permit from
the local authority

Example:
- individual benefit vs. Obligation to comply spatial plan
34
Merujuk pada:

Week 4
Peraturan perUUan ttg Penataan Ruang
Merujuk pada: Peraturan perUUan ttg Lingkungan Hidup
Undang-undang Agraria Peraturan perUUan ttg Bangunan, dll

HAK-HAK ATAS TANAH


~ property right ≠ PELUANG/HAK MEMBANGUN
~ development right

Hak-hak atas tanah memberi peluang/hak untuk mengubah lahan dari


wewenang untuk mempergunakan penggunaan/intensitas saat ini menjadi

PL4105 DZ/22 - 2.1 Concept of Development Control


tanah yang bersangkutan, demikian penggunaan/intensitas lain sesuai
pula tubuh bumi dan air serta ruang ketentuan penggunaan lahan yang berlaku
yang ada di atasnya, sekedar
diperlukan untuk kepentingan yang
Diberikan oleh Pemerintah Daerah
langsung berhubungan dengan
dalam bentuk:
penggunaan tanah itu dalam batas-
Rencana Pola Ruang,
batas menurut Undang-undang ini
KDB, KLB, Tinggi Bangunan
dan peraturan-peraturan hukum lain
35

yang lebih tinggi. (Pasal 4)

35
PL4105 DZ/22 - 2.1 Concept of Development Control Week 4
36
Week 4
• Regulatory and Discretionary
 Regulatory: control is based on a certain
regulation
 Discretionary: control is decided and carried out
by appointed officials in charge

PL4105 DZ/22 - 2.1 Concept of Development Control


TYPES OF
CONTROL • Promotion and Restriction:
 Promote development: to promote desired
development as planned
 Restrict development: to restrict development,
and avoid or reduce deviation or non-conforming
development

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PL4105 DZ/22 - 2.1 Concept of Development Control Week 4
38
Week 4
Preventive Curative
Restrict ▪ Zoning • Enforcement
Development ▪ Development Control/Permit • Punishment
▪ Site Plan Control • Penalty
▪ Subdivision Control
▪ Disincentive
o Development charge

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o Development Impact Fee
o Taxation
o etc
Promote ▪ Incentive :
Development o Tax reduction
▪ Bonus Zoning
▪ Performance Zoning
▪ Special Use Permit
▪ Special Condition
▪ Agreement
▪ Minor Variance, etc

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Week 4
• Public Law and Private Law
Both public laws and private laws can be used to control
development

 Public law:
▪ “…branch of law dealing with the legal relationships between

PL4105 DZ/22 - 2.1 Concept of Development Control


the state and individuals and with the relations among
governmental agencies…”
(http://www.rec.org/REC/Publications/BndBound/terms.html)
▪ “…the area of the law governing the relationship between
individuals (citizens, companies) and the state…”
(http://en.wikipedia.org/wiki/Public_law)
▪ “a law affecting the public at large”
(http://wordnet.princeton.edu/perl/webwn)
▪ has general applicability nationwide
(http://www.genome.gov/15014431); affects the entire nation
(http://www.loc.gov/rr/program/bib/congress/ congress-glossary.html);
▪ Constitutional law, administrative law and criminal law are sub-
divisions of public law (http://en.wikipedia.org/wiki/Public_law)
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Week 4
• Private Law:
 branch of law dealing with the legal relationships
between individuals, and the relations between
individuals and government as an individual
 Include civil law (perdata); commercial law (dagang);
arbitrary law (perselisihan): international (private)

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arbitrary law, national arbitrary law,

Examples of Public Law:


- UU No. 26/2007 tentang Penataan Ruang,
- Perda Kota Bandung No. 3/2005, jo. No. 11/2005 tentang
Penyelenggaraan K3
- Perda Kota Bandung No. 4/2011 tentang Penataan dan
Pembinaan PKL

41
Week 4
• Alder, John (1989). Development Control. London: Sweet and
Maxwell Ltd.
• Bryant, R.W.G. (1972). Land: Private Property Public Control.
Montreal: Harvest House Ltd.
• Harrison, M. L.; R. Mordney (1987). Planning Control: Philosophies,
Prospects, and Practice. London: Croom Helm.
• McAuslan, Patrick (1980). The Ideologies of Planning Law. Oxford:

PL4105 DZ/22 - 2.1 Concept of Development Control


Pergamon Press.
REFERENCES • Spreiregen, Paul D. (1965). Urban Design: The Architecture of Town
and Cities. New York: McGraw Hill Book, Co.
• Patterson, T. William (1979). Land Use Planning: Techniques of
Implementation. New York: Van Nostrand Reinhold.
• Planning Act, Revised Statutes of Ontario, 1990, Consolidated 1998
• Town & Country Planning Act of Great Britain, 1962
• Staadsvorming Ordonnantie, Staatblad 1948 No. 168
• Related land laws and regulations

42
Week 4
• Alder, John (1989). Development Control. London: Sweet and Maxwell Ltd.
• Altshuler, Alan A.; Jose A. Gomez-Ibanez (1993). Regulation for Revenue: The
Political Economy of Land Use Exactions. Washington, DC: The Brookings
Institution.
• Ansari, Jamal H.; Nathaniel von Einsedel, eds. (1998). Urban Land
Management: Improving Policies and Practices in Developing Countries
of Asia. New Delhi: Oxford & IBH Publishing Co. PVT Ltd.

PL4105 DZ/22 - 2.1 Concept of Development Control


MORE REFERENCES • Beatley, Timothy (1993). Ethical Land Use Principles of Policy and
for DEVELOPMENT Planning. Baltimore: The John Hopkins University Press.
CONTROL: • Bryant, R.W.G. (1972). Land: Private Property Public Control. Montreal:
Harvest House Ltd.
• Dankerley, Harold B., Ed. (1983). Urban Land Policy: Issues and
Opportunities. Washington DC: IBRD/World Bank.
• Darin-Drabkin, H. (1977). Land Policy and Urban Growth. Oxford: Pergamon
Press.
• Fabos, Julius Gy (1985). Land Use Planning: From Global to Local Challenge.
London: Dowden and Culver.

43
Week 4
• Greer, Gaylon E; Michael D. Farreli (1983). Contemporary Real Estate
Practice: Theory & Practice. Chicago: The Dreyden Press.

• Goldberg, Michael; Peter Chinloy (1984). Urban Land Economics. New York:
John Wiley & Sons.

• Harrison, M. L.; R. Mordney (1987). Planning Control: Philosophies, Prospects,


and Practice. London: Croom Helm.

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• Kaiser, Edward J.; D.R. Godschalk; F.S. Chapin, Jr. (1995). Urban Land Use
Planning, 4th ed. Chicago: Univ. of Illinois Press

• Kitay, Michael G. (1985). Land Acquisition in Developing Countries: Policies


and Procedures of the Public Sector. Boston: Oelgeschlager, Gunn & Hain

• Kivell, Philip (1993). Land and the City. London: Routledge.

• Lean, W.; B. Goddal (1983). Aspects of Land Economics. London: The Estates
Gazette Ltd.

• Leung, Hok Lin (1989). Land Use Planning Made Plain. Kingston: Ronald P.
Rye & Co.

• Mather, A.S. (1986). Land Use. London: Longman.


44
Week 4
• McAuslan, Patrick (1980). The Ideologies of Planning Law. Oxford:
Pergamon Press.
• ________ (1985). Urban Land and Shelter for the Poor. Washington DC.:
Earthscan.
• McLoughlin, J. Brian (1973). Control and Urban Planning. London:
Faber & Faber Ltd.
• Mandelker, Daniel R. (1993). Land Use Law, 3rd ed. Charlottesville: The

PL4105 DZ/22 - 2.1 Concept of Development Control


Mitchie Co.
• Patterson, T. William (1979). Land Use Planning: Techniques of
Implementation. New York: Van Nostrand Reinhold.
• Van Kooten, G. Cornelis (1993). Land Resource Economics and
Sustainable Development. Vancouver: UBC Press.
• Werner, Helen Margaret (1926). The Constitutionality of Zoning
Regulations. Springfield: The University of Illinois.
• Wignjodipuro, Surojo (1995). Pengantar dan Asas-asas Hukum Adat.
Jakarta: PT Toko Gunung Agung.
• Yuan, Lim Lan (1987). Development Charge. Singapore: Singapore
National Printers Ltd.
• Related land laws and regulations 45

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