Ā©Ulil/Bal
This article was originally published in Indonesian on April 16, 2021.
The allure of tourism and building permits haven in Yogyakarta induces capital holders to create their property empires there. Thus, the red carpet for gentrification has unfolded. As gentrification takes place in the Special Region, underneath lies its hidden dangers.Ā
As Kompas (19-01) reported, Kristen Gray’s tweet in January 2021 drew various reactions from Indonesian netizens. Based on this report, she lives in Bali with an expired permit or visa and suggests friends from other countries take the same action. In its report, Kompas also highlighted how better-off residents in less affluent areas can access various facilities at a lower cost.
According to Hardian Wahyu Widianto, Lecturer at the Department of Public Administration, Yogyakarta State University, this phenomenon can be viewed through a gentrification lens. In simple terms, he explained that gentrification is the process of changing space from a slum area to a better area due to property development or management. Hardian further explained that the property includes land, buildings, structures, and exclusive and luxurious residences.Ā
Hardian also explained that this gentrification could cause several problems. For example, the process of population movement due to gentrification can have an impact on population shifts. According to him, it is caused by the potential for the expulsion of the original inhabitants of the slum area. “They could be evicted because they are unable to access or buy properties at affordable prices,” he explained.
Factors Contributing to Gentrification in Yogyakarta
The emergence of gentrification in Yogyakarta* is closely linked to the influx of migrants and tourists who either temporarily stop by or choose to stay, according to Deddy Pranowo, Chair of the Regional Management Board of the Indonesian Hotel and Restaurant Association in Yogyakarta. He emphasized that the main allure of Yogyakarta is its tourism aspect. Deddy considers Yogyakarta to be culturally rich and blessed with natural beauty. He noted that the Yogyakarta Palace is a unique tourism destination because the king still reigns and the culture is still strong. “Yogyakarta also has an abundance of breathtaking topographical views that are both stunning and visually pleasing,” he added.
Furthermore, Deddy added that based on data from the Ministry of Tourism and Creative Economy, Yogyakarta remains a favorite tourist destination for tourists even during a pandemic. “The plenty of tourist attractions and high tourism opportunities are what make entrepreneurs and capital owners interested in building and developing properties in Yogyakarta,” he explained.
Meanwhile, in explaining the pull factors of gentrification, Hardian looks at it based on three perspectives, namely neoclassical, Marxism, and post-colonial. According to him, based on the neoclassical view, gentrification occurs due to the movement of migrants or white-collar workers who need housing as a place to live. He added that apart from migrants, the arrival of tourists also increased the odds of tourism gentrification. “The arrival of theseĀ migrants and tourists will trigger the market to provide various accommodation facilities as housing,” he added.
On the other hand, from the perspective of Marxism, Hardian explained that gentrification is a product of the relations between producers and capital. According to him, producers, referring to property entrepreneurs, take advantage of the disparity in land prices and rental costs in various areas in Yogyakarta. He said that with a profit orientation, these entrepreneurs often align the development scheme with the community’s needs. “Therefore, looking at the context of gentrification in Yogyakarta, producers tend to build and increase accommodation for tourism and student housing,” he remarked.
Lastly, from a post-colonial perspective, Hardian stated that the flow of gentrification is caused by government policies. He explained that the government’s desire to stimulate regional income would lead to directives to carry out various development projects. “Of course, this will have an impact on the increasingly massive construction of hotels or residential areas,” he added.Ā
The Layered Effects of Gentrification in Yogyakarta
On a deeper scale, the strong allure of Yogyakarta has the potential to give rise to a gentrification phenomenon with various implications. Amirullah Setya Hardi, a Lecturer at the Faculty of Economics and Business, Gadjah Mada University, said this gentrification significantly impacts land or land prices. He explained that gentrification could weaken local residentsā purchasing power regarding land or housing prices. According to him, this is because the amount of land will always be the same. Still, the population’s need for land will continue to increase. “As a result, the price of land will be higher so that in practice, it is often difficult for local residents to access it,” he explained.
In addition, Kirnadi, a representative of the Yogyakarta Workers’ Alliance, also said that the construction of hotels, apartments, and urban housing services could generate jobs. However, according to Kirnadi, it is difficult for the local community to access these jobs. “This is because of the ability of local residents who are less prepared and planning to get jobs from the development process,” he said.
This statement was affirmed by Deddy, who said that in the labor recruitment process, there are indeed standardized qualifications required by several hotel managers in Yogyakarta. According to him, this standardization is crucial because it relates to the services provided to not damage the image of Yogyakarta tourism. As a result, Deddy does not deny that national or international-class hotels often employ workers from outside Yogyakarta.
In addition to land and labor issues, Hardian added that gentrification could change the composition of the population which could potentially displace local residents that cannot compete with migrants. “The inability of local people to purchase affordable land or housing has the potential to evict them from their areas of origin,” he added.
Moreover, Kirnadi also explained that the issue of gentrification has been advocated by workers in Yogyakarta for a long time. He emphasized that the impact of this gentrification is felt by the workers and is exacerbated by the very low Provincial Minimum Wage (UMP) in Yogyakarta “This wage tends to be disproportionate to the average expenditure in Yogyakarta, which is relatively high for workers,” he said. Kirnadi added that the lack of affordable housing for workers would threaten them with homelessness.
Unfortunately, even though gentrification brings complicated and complex problems, Hardian considers that the people of Yogyakarta are still largely unaware of this problem. According to him, two causes make people less alert. First, a lack of public insight and information on agrarian issues that tend to be latent, such as gentrification. Second, the impact of gentrification is not immediately felt by the community. He said that the impact of gentrification might only be felt after about 5-10 years. “It is this indirect impact that makes people not immediately respond reactively to the problem of gentrification in Yogyakarta,” he explained.
Considerations for the Greater Good
Regarding the impact of gentrification that allows disputes to arise due to evictions, Amirullah proposed a recommendation in the form of a comprehensive negotiation process. According to him, to prevent chaos and friction between investors and the people, the government needs to facilitate a more directed and sustained communication process between the two parties. He said that this negotiation process was necessary to benefit all actors involved in the gentrification issue in Yogyakarta. “There is nothing wrong with the negotiation process taking a long time, as long as it brings goodness in the end,” he said.
On the other hand, Kirnadi added that workers had struggled to request optimization of the use and utilization of the Sultan Ground (SG) and Paku Alam Ground (PAG). He conveyed that this proposal could be considered in dealing with the problem of skyrocketing land prices due to gentrification. He also stressed that the demand was aimed at turning SG and PAG into people’s lands, which would be converted into usable housing at affordable prices.
According to Hardian, this demand is quite reasonable although it will be challenging. He said that it was only natural that the natives of Yogyakarta demanded the optimization of the use of SG and PAG. “However, this demand is like the people holding land against their king, it is difficult to be granted,” he explained.
Instead of optimizing the use of SG and PAG, Hardian offers two integrated solutions that he feels are capable of dealing with the problem of risingĀ land and housing prices due to gentrification. First, he suggested the government collect high taxes on massive property developments in Yogyakarta. “Revenue from this tax can be reallocated for the benefit and welfare of local communities,” he explained.
Second, Hardian recommended the government establish public housing to avoid the possibility of homeless workers. According to him, the budget for public housing development can be supported by the high tax revenue mentioned earlier. “The concept of this housing is that the government rents out decent housing at affordable prices for people who need it,” he explained. He added that this recommendation was considered capable enough to solve the gentrification problem the community experienced.
Nevertheless, Hardian is reluctant to expect government action because he sees the history of government policies that are sometimes indifferent to problems like this. “So, these expectations or considerations are often countered by the reality of existing power,” he concluded.
Translatorās Note:
*Yogyakarta is a Special Region, legally instituted by the Yogyakarta Specialness Law No.13/2012. The Sultanate of Yogyakarta is given gubernatorial authority, plus independent authority in five sectors, including land administration.Ā
Authors: Achmad Hanif I, RR Natasya Nurputri A, Sofiana Martha R, and Nasywa Nur A
Editor: M Affan Asyraf
Illustrator: M Zia Ulil Albab
Translator: Ludvia