Introduction

Land-use changes refer to significant alterations in the purpose and utilization of land
within a specific geographic area. These changes can involve converting agricultural land into
industrial or commercial zones, expanding residential areas, or transforming natural landscapes
into built environments (Dahal & Timalsina, 2020). The impacts of these changes can be far-
reaching and have implications for various environmental components, such as water and land.
While neoliberal planning in the Karawang Regency may prioritize economic growth and private
sector involvement, it's essential to consider the potential environmental consequences of such
rapid land-use changes. The socioeconomic impacts of these changes must also be examined,
particularly regarding social inequalities and access to resources (Cipollina et al., 2018).

Moreover, the effects of neoliberal land-use changes are not uniform and can have
disparate impacts within different social sectors. It is important to analyze how these policies have
affected marginalized communities and whether they have exacerbated social inequalities.

Neoliberalism, a socio-economic ideology that emerged in the 1980s, has had a profound
impact on various aspects of society, including urban planning and land-use changes. According
to sources, neoliberal policies were initially implemented in Chile in the 1970s and then spread to
other regions such as Latin America, Sub-Saharan Africa, New Zealand, and Australia (Salinas-
Atausinchi & Huaman-Lucana, 2021). However, the consequences of neoliberal land-use changes
have been extensively debated. Some argue that these market-oriented policies have resulted in
significant social and economic inequalities, while others contend that they have promoted
economic growth and development.

Neoliberalism, which is rooted in the belief of minimal government intervention and free
market principles, has played a pivotal role in shaping urban landscapes and land-use patterns.
The impact of neoliberal policies on urban development has been a subject of intense scholarly
debate. In this context, it is crucial to explore the specific repercussions of neoliberal planning on
the Karawang Regency. By examining the influence of neoliberal ideologies on land-use changes,
it becomes possible to understand the dynamics of economic, social, and spatial transformations
within the region. According to Sager, neoliberal planning in the context of urban development
involves favoring private sector solutions, competitive governance, property rights, and economic
development (Rauch et al., 2013). Neoliberal planning in Karawang Regency is likely to be
characterized by similar features, including an emphasis on attracting private investment,
promoting economic growth and prioritizing market-driven development projects.

This study aims to examine the neoliberal policies implemented in Karawang Regency that
have influenced land conversion. By meticulously examining the policy frameworks derived from
neoliberal ideologies and their actualization within Karawang’s planning documents, this research
endeavours to pinpoint and assess the precise policies shaping land conversion dynamics in the
region. Furthermore, this investigation seeks to analyze how the adoption of these neoliberal
policies has developed land use in Karawang. Additionally, the study will conduct a comprehensive
assessment of the advantages and disadvantages associated with the application of neoliberal
policies in Karawang. Understanding these implications will offer insights into the efficacy and
consequences of implementing neoliberal policy in shaping land use patterns in Karawang.

This paper is structured into several sections. The literature review provides a foundation
by examining existing scholarly works and theories related to neoliberal policies' influence on land
use patterns. The study area and methods section outline Karawang Regency's specifics and the
methodologies used. The results and dicussions section focuses on delineating the predominant
neoliberal aspects recognized within Karawang's planning documents followed by critically
analyze and interpret the results. Finally, the conclusion summarizes key findings and their
significance.

Literature review
2.1. Neoliberal Planning
Neoliberalism can be understood as a rearrangement of the connection between private
capital owners and the government, which justifies and promotes for a prioritization of economic
growth in urban development (Sager, 2011). Neoliberalism is not solely limited to being an
inherent quality of specific institutions or political systems; it also functions as an external system
of regulations and established patterns, generating influences and imposing consequences. The
influence of this factor on interurban competition and intraurban growth is both important and
independent (Peck & Tickell, 2002).

Basic features of neoliberal planning (Gunder et al., 2018):

1) Trust in the inherent ability of the market to efficiently allocate land.

2) A philosophical skepticism towards governmental planning because of its tendency
to skew the market.
3) The state's mobilization to remove its planning functions.
4) Delegating planning responsibilities to the private sector
5) Strengthening the authoritarian state to carry out repressive functions

A neo-liberal policy refers to a set of methods endorsed by neo-liberal systems, which

involve a transition from government-controlled approaches to (partially) private ones. This
transition may involve a change from publicly planned solutions to market-oriented ones, or at
the very least, prioritizing the interests of private enterprises and their preferred consumers. The
essential requirement for the implementation of neo-liberal policies is the emergence of
urbanization and modernization, which necessitate substantial investments in cities. The key
concept is that the presence of flowing investment capital drives cities to engage in competitive
behavior. In order to attract infrastructure investment, corporate offices, and factories, cities must
enhance their proposals in comparison to other cities. In order to excel in this competition, the
government must exhibit an enterprising mindset (Sager, 2012)

The concept of addressing planning issues through the privatization of urban planning can
be achieved by engaging private consultants to handle planning tasks, allowing private companies
to take responsibility for planning development, and outsourcing planning-related activities, such
as building regulation. Sager further argue that neoliberal planning practices can take form in:

1) Public-private partnership
2) Private sector participation in the financing and operation of transportation
infrastructure
3) Transferring ownership and control of public space to private sectors
4) Privately administered and protected residential areas
5) Quangos coordinating market-driven urban development
6) Open bidding
7) Property-led urban revitalization
 8) Adaptable zoning regulations and designated business-friendly areas
9) Gentrification
10) Urban growth that involves attracting the ‘creative class’

The evolution of neoliberalism unfolded across several phases. Initially, 'roll-back

neoliberalism' characterized a phase where neoliberalism served as a political-economic project.
This era witnessed neoliberal trust in politics, where state power actively forced marketization
and deregulation initiatives. The following phase, 'roll-out neoliberalism,' signifies a period
marked by destructive and reactionary anti-regulation principles. This phase notably highlighted
the emergence of new forms of social and penal policymaking in the political landscape. Finally,
'Deep Neoliberalism' represents a stage where neoliberalism not only permeates institutions and
places but also the spaces in-between.

2.2. Land Use/Cover Change (LUCC)

Land cover refers to the characteristics of the Earth's land surface and the immediate
layers beneath it, encompassing elements such as vegetation, soil, terrain, water bodies, and
human-made constructions, particularly urban areas. Land use refers to the various ways in which
humans interact with vegetation, soil, and water to achieve certain goals. This includes activities
such as utilizing, tampering and managing the biophysical features of a land-use system.

Land cover changes, such as agricultural expansion, deforestation, or urban growth,

involve a transition from one cover type to another. It can be seen by remotely sensed data or by
analysing secondary information. Meanwhile, land use is primarily obtained by meticulous
ground-based analysis. However, land use changes can also be deduced from remotely
sensed data in specific situations (Lambin & Geist, 2006).

Factors impacting land use:

1) Biophysical: This factor consists of the fundamental environmental conditions that

determine the potential for land use change. These factors include both non-living
(abiotic) and living (biotic) elements such as climate, soils, lithology, terrain, relief,
hydrology, and vegetation. The particular configuration of these elements may vary
across diverse locations and regions and may undergo changes over time (Lambin et
al., 2001).
2) Economic and Technology: Over a span of a few decades or less, alterations in land
use primarily arise from individual and societal reactions to economic circumstances,
influenced by institutional factors (Lambin et al., 2001). New possibilities and
limitations for land use emerge from the interplay of markets and policies, with a
growing impact from global factors (Lambin & Geist, 2006).
3) Demographic: It is essential to consider the composition and distribution of the
population in recognizing the significance of indirect or consumptive demands on land
from a progressively urbanized populationc (Lambin et al., 2001). Demographic
variables, especially population growth, are anticipated to be pivotal in elucidating
changes in land use (Reid et al., 2005).
4) Institutional: Government policy has a widespread and influential impact on changes
in land, either directly causing them or acting as a mediator. Governments intervene
to decrease fertility rates and promote transmigration affecting demographic
variables. Additionally, they maintain control over prices, offer financial support for
 resources, facilitate access to credit, stimulate industrial growth and exports, as well
as establish and uphold infrastructure (Lambin & Geist, 2006).
5) Cultural: Cultural elements, including political and economic disparities, such as the
role of women, ethnic minorities, and resource-deprived households, have an impact
on decision-making on land use and resource accessibility (Lambin & Geist, 2006).

2.3. Study Case

Karawang Regency, situated in the northern part of Java Island, Indonesia, holds a
significant position within the North Java region. Geographically, it neighbors the Jakarta
metropolitan area to the west and shares borders with Bekasi, Purwakarta, Subang, and Bogor
Regency. This strategic location within the Greater Jakarta vicinity positions Karawang as an
integral part of the extended urban conglomeration in western Java.

As of 2022, the population of Karawang stands at 2.5 million, with a land area spanning
approximately 1,911 km2. In 2022, Karawang Regency exhibited notable economic indicators, with
its Gross Regional Domestic Product (PDRB) primarily driven by the industrial sector. The largest
contribution to the PDRB in 2022 stemmed from the industrial sector, amounting to 191.4 trillion
Indonesian Rupiah, constituting approximately 71% of the total regional PDRB. Moreover, this
sector demonstrated a commendable growth rate of 7.5% during that period.

An essential facet of Karawang's economic landscape is its substantial utilization of land

for agricultural purposes. In 2020, a considerable 57% of the land in Karawang was designated for
paddy fields, emphasizing the significance of rice cultivation in the region's agricultural sector.
Notably, the productivity of these paddy fields averaged around 74.26 quintals per hectare.

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The methodology integrates academic literature, news sources, and policy documents,
guided by the framework of neoliberal planning theory, to study and interpret the phenomena.
The process begins with a comprehensive literature review, which includes academic articles,
books, scholarly works, and policy documents that are related to the phenomena being studied.
The purpose of this phase is to create a thorough basis by recognizing important theoretical
frameworks, empirical discoveries, and practical consequences outlined in academic and policy-
focused sources.

In order to capture the phenomenon's dynamic elements in real time, the second
component entails a thorough investigation of news sources. By integrating contemporary events
and media portrayal, this measure improves our comprehension of the ever-changing
characteristics of the phenomena, its influence on society, and the continuous public discussion.

Results and Discussions

4.1. Identified Neoliberal Features in Karawang’s Planning Documents
a. Trust in market to efficiently allocate land
RTRW Jabar: Article 2 paragraph 5 point b identifies the three regencies of
Purwakarta, Subang, and Karawang as a "priority development
area." This designation indicates that the government believes that
these regencies have the potential to be economically successful,
and that the market should be allowed to play a leading role in
their development.
RTRW Karawang: The Karawang Regency government is delegating the
development of industrial zones to private companies. This is
evident in Article 4 paragraph 2 and Article 5 paragraph 4, which
states that industrial development will take place in the Cikampek,
West Telukjambe, East Telukjambe, Klari, Ciampel, West
Karawang, East Karawang, Pangkalan, and Eengasdengklok
districts.
RPJMD: The emphasis on creating industrial zones and special areas for
industries within Karawang Regency reflects a reliance on market-
driven mechanisms to attract industrial investment. The
government's decision to delegate the development and
management of industrial zones to private companies suggests
that the state is trusting the market and industry to allocate land
based on their needs efficiently.

b. Distrust in governmental planning

RTRW Jabar: There's an indirect reflection of skepticism toward governmental
planning in the sense that these legislative provisions (Article 2
paragraph 5 point b, Article 41 paragraph 5 point a) outline
regional developmental plans without significant emphasis on
centralized governmental planning. This approach suggests a
degree of decentralization and delegation of regional
development initiatives without overt reliance on centralized
governmental planning.
RTRW Karawang: The Karawang Regency government is providing incentives
and disincentives to encourage the development of agricultural
and industrial zones. This is evident in Article 61 paragraph 3,
which states that incentives and disincentives will be provided for
efforts to preserve protected areas, sustainable food agriculture
 areas, the development of industrial designated areas, urban
settlements, and trade and services.
RPJMD: The government's decision to delegate the development and
management of industrial zones to private companies suggests
that it is skeptical of the ability of government planning to
effectively promote industrial development.

c. Removal of government’s planning functions

RPJMD: The government's decision to delegate the development and
management of industrial zones to private companies suggests
that the government starts to limit their planning functions.

d. Delegating planning responsibilities to private sectors

RTRW Jabar: Article 41 paragraph 5 point a states that the WPPI-1, which
includes Karawang Regency, will focus on industrial development.
This indicates that the government is delegating planning
responsibilities for industrial development to the private sector.
RPJMD: The government's decision to delegate the development and
management of industrial zones to private companies suggests
that it is delegating some of its planning responsibilities to the
private sectors.

4.2. Identified Neoliberal Practices

a. Public-private partnership
The Karawang Government has engaged in multiple Public-Private
Partnerships (PPPs) with companies to handle the management of industrial
zones, including a significant cooperation with CFLD. CFLD International, a
renowned developer, and operator of new industrial zones in China, is known for
its leading involvement in the PPP model in China. CFLD engages in industrial zone
development by implementing the PPP framework and collaborating with local
governments. CFLD extended its business activities to Indonesia, specifically
targeting industrial development. They embarked on projects like the Karawang
New Industry City, which played a significant role in fostering the growth and
establishment of industrial sectors in Karawang (Leonardy, 2020).
b. Privately administered and protected residential areas
The emergence of housing complexes such as Podomoro Parkland in
Karawang Regency illustrates a rising preference towards privately managed
residential zones using gated community concepts. These indicate a transition
towards residentials that have restricted access, providing private facilities, and
increased security measures. This trend is in line with neoliberal ideals, which
prioritize the involvement of the private sector in meeting the needs of various
socioeconomic groups who are looking for secure and regulated living situations.
The rise of gated communities reflects a larger pattern in housing preferences,
demonstrating a growing dependence on market-driven strategies for residential
development in Karawang.
c. Open bidding
 In Karawang's governance framework, the tendering process for planning
documents through LPSE (Electronic Procurement Service) predominantly
involves participation from private companies or consultants. This process is in
line with neoliberal principles that prioritize the participation of private
businesses in public initiatives. The bidding method demonstrates a relationship
with market-oriented processes to provide services and expertise in the planning
field. This aligns with neoliberal concepts that support more involvement of the
private sector in public sector activities.
d. Adaptable zoning regulations and designated business-friendly areas
The Karawang Regional Spatial Plan (RTRW) and Mid-Term Development Plan
(RPJMD) demonstrate how the city of Karawang has implemented neoliberal
zoning policies by creating business-friendly zones and flexible regulations. These
regulations provide companies with the flexibility to invest and independently
develop their sites or land inside specific industrial zones. This strategy is in line
with neoliberal concepts that prioritize limited government intervention and
market-driven strategies.
e. Urban growth that involves attracting the ‘creative class’
The inclusion of innovation hubs such as techno parks and training houses in
West Java's spatial planning for WPPI-1 (including Karawang Regency) is a
deliberate approach to promote industrial growth and innovation. This strategy
aligns with certain elements of neoliberal urban development, particularly
focusing on attracting and supporting the 'creative class’. These centers aim to
foster an environment that promotes creativity, collaboration, and technological
progress within the industrial sector. The goal is to attract and support a creative
workforce, which in turn contributes to economic growth and urban
development.

The implementation of neoliberal practices in Karawang Regency has impacted land use
patterns, particularly in terms of agricultural land conversion. The adoption of public-private
partnerships, the rise of privately managed and protected residential areas, the preference for
open bidding processes, the establishment of adaptable zoning regulations and business-friendly
zones, and the focus on attracting the 'creative class' have all contributed to a shift in land use
away from agriculture and towards industrial and residential development. This shift is consistent
with neoliberal principles that emphasize market-driven strategies, private sector involvement,
and reduced government intervention. While these changes have brought economic growth and
development opportunities to Karawang, they have also raised concerns about the sustainability
of agricultural production and the preservation of Karawang's natural environment

4.3. Roll-out neoliberalism

The Regional Spatial Plan of Karawang Regency demonstrates a strong tendency towards
promoting a free-market concept, especially in industrial activity. This tendency led to
unrestrained industrial growth, which led to unregulated urban expansion driven by the
simultaneous development of industries, residential areas, and related activities. This swift
urbanization resulted in the transformation of cropland for non-agricultural uses. Karawang
Regency then implemented a type of neoliberalism called "roll-out neoliberalism" to respond to
these issues. This was accomplished by enacting various local regulations, such as Regional
Regulation No. 13 of 2017 concerning the protection and empowerment of farmers, Regional
Regulation No. 1 of 2018 regarding the safeguarding of sustainable agricultural land, and Regent
Regulation No. 12 of 2022 on the reduction of Land and Building Tax (PBB P2) for taxable rice field
properties.

Regional Regulation No. 13 of 2017, focused on protecting and empowering farmers,

exemplifies a response within the neoliberal paradigm. This regulation is in line with neoliberal
ideas, aiming to protect disadvantaged sectors that are impacted by market dynamics while
recognizing the necessity of implementing protective measures in an economy that is primarily
driven by market forces.

Similarly, Regional Regulation No. 1 of 2018 reflects Karawang's adaptation to neoliberal

principles by emphasizing the preservation of sustainable agricultural land. This regulatory tool
aims to protect vital agricultural areas from the expansion of urban sprawl driven by uncontrolled
industrial growth. The statement represents the region's effort to balance market-oriented
policies with social and environmental considerations, demonstrating the complex approach
inherent within the roll-out neoliberalism.

Furthermore, the introduction of Regent Regulation No. 12 of 2022, entailing the

reduction of Land and Building Tax (PBB P2) for taxable rice field properties, denotes Karawang's
strategic response within the neoliberal framework. This fiscal incentive is designed to support
agricultural activities in response to the challenges presented by rapid urbanization and industrial
expansion. The regulations in Karawang demonstrate the region's ability to adapt to the
challenges of implementing neoliberalism. These regulations aim to balance protective measures
and market-oriented policies in order to effectively manage the repercussions of a growing
market-driven economy within the region's changing economic landscape.

4.4. Advantages of Neoliberal Planning in Karawang’s Development

a. Investment

4.5. Disadvantages of Neoliberal Planning Karawang’s Development

a. Land conversion
From 2013 to 2018, the rice fields in the East Telukjambe district underwent
a decrease, shrinking by 89.76 hectares. Notably, 90% of these rice fields were
passed down from their elders, and 57% of the fields had been cultivated for over
ten years (Moechtar & Warlina, 2019). Furthermore, the satellite images spanning
from 2003 to 2023 clearly showed a noticeable pattern of increasing constructed
areas, suggesting significant urban expansion and progress. The transition from
agricultural landscapes to urban and developed areas indicates the conversion of
previously productive agricultural land for non-agricultural purposes, leading to a
decrease in rice field areas and potentially impacting the productivity of these
lands.
b. Rise of land prices
 The surge in land prices in Karawang, escalating by 2.2% through 2022 to
early 2023 (Media, 2023), has notably affected the landscape and land utilization
within the region. At present, the price of industrial land in Karawang is roughly
Rp 2.065.000 per square meter. Research done in East Telukjambe District
identified the primary reason for the conversion of agricultural land (Moechtar
& Warlina, 2019). According to 40% of the respondents, the main factor was the
significant increase in land values. This was closely followed by 30% of the
respondents who attributed the conversion to commercial and cooperation
activities. The adoption of neoliberal policies has had a substantial impact on
the rising land prices, primarily by promoting the conversion of land into
industrial areas. The change in land use has caused a domino effect, resulting in
swift land conversion in the nearby regions, further promoting the transition
from agricultural to industrial and residential.

c. Rice Production
Between 2013 and 2020, the harvested area for rice cultivation in Karawang
decreased from 185,052 hectares to 177,139 hectares (Jabar, 2021) . Additionally,
the rice production in Karawang declined from 1,133,671 tons in 2018 to
1,096,657 tons in 2023 (BPS, 2023), marking a decrease of 37,014 tons or
approximately 3.3%. These statistics indicate a notable reduction in both the
cultivated land area and rice yield over recent years. This decline in agricultural
productivity can be correlated with the ongoing land conversion in Karawang,
which has been influenced by neoliberal policies promoting the transformation of
agricultural land into industrial zones. The conversion of agricultural areas into
industrial zones, driven by neoliberal economic policies, has likely contributed to
the diminishing agricultural land available for rice cultivation, ultimately
impacting the region's rice production output.

4.6. Criticism and Suggestions

a. Criticism:
• It took a long time for the government to realize the conditions
• The available data is insufficient for a thorough analysis
b. Suggestions:
• Need for a comprehensive housing database
• Intensification of agricultural land
 • Controlling the market

Conclusions
The presence of neoliberal principles in Karawang's planning policies has resulted in a
significant change in the region, particularly noticeable in the industrial sector. Industries have
become a key driver for the economy of Karawang, making a substantial contribution to its GDP.
Nevertheless, this transition towards industrialization has also led to significant land changes.
Although industries are thriving, the following conversion of agricultural land has had little effect
on rice production. However, the shift in land utilization from agricultural to industrial and
residential areas raises concerns over the future. The swift expansion of residential areas,
combined with demographic trends suggesting a decrease in entering individuals relative to
outgoing migrants, could result in a surplus of vacant housing developments. This scenario
highlights the urgent need for government engagement to address and overcome these
emerging difficulties.

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