Generating Different Urban Land Configurations Based on Heterogeneous Decisions of Private Land Developers: An Agent-Based Approach in a Developing Country Context

In the provision of urban residential areas, private land developers play critical roles in nearly all stages of the land development process. Despite their important role little is known about how the spatial decisions of individual developers collectively influence urban growth. This paper employs an agent-based modelling approach to capture the spatial decisions of private land developers in shaping new urban forms. By drawing on microeconomic theory, the model simulates urban growth in the Jakarta Metropolitan Area, Indonesia, under different scenarios that reflect the decision behaviours of different types of developers. Results reveal that larger developers favour sites that are more proximate to the city centre whilst smaller developers prefer sites that are located further away from the city, that drive a more sprawled urban form. Our findings show that new urban areas are generated by different developers through different processes. The profit maximisation behaviour by developers with large capital reserves is more predictable than those with small capital funds. The imbalance in capital holdings by different types of developers interacts with one another to exert adverse impacts on the urban development process. Our study provides supporting evidence highlighting the need for urban policy to regulate urban expansion and achieve more sustainable urban development outcomes in a developing world context.

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