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CHAPTER I

INTRODUCTION

1.1. Research Background

A city is centre of human activities, so it must provide spaces for settlement,

working places, centre of government services, centre of trade and services.

Obviously, it is a place for day-by-day human activities especially its residents.

These consequences generates city grows become centre of population compared

with surrounding region.

Cities in the world have suffered from increasing population that in 1900s just

10% of the global population was living in urban areas which now exceeds 50%

and is expected to further rise to 67% in the next 50 years (Singh et al. 2010).

Furthermore, cities in the world that occupy less than 3% of the global terrestrial

surface, but account for 78% of carbon emissions, 60% of residential water use, and

76% of wood used for industrial purposes. Undoubtedly, the world urbanization

will continue to have substantial impact on the ecology, economy and society at

local, regional, and global scales. In addition, urban population is likely to grow in

upward trend, unless the population can be controlled, will critically impacts on

climate change.

Urban development much concern on physical development than

environmental development to meet the needs of its residents. Indeed, urban

development cannot avoid opening its green area to be built-up area as the process

of development occurs. However decreasing of green areas characterize that urban

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development is failure to ensure sustainability of environmental development. This

deterioration is worse since conventional development approach tended to exploit

the land.

On regional scale, most Indonesian metropolitan and large cities suffer from a

lack of public green open space (hereafter called GOS), which averages less than

10% of all urban areas (Sutanto, 2009). The GOS in Batam Municipality has been

decreasing due to urban development. According to Batam Environmental Impact

Control Agency, the Municipalitys developed land increased from 9.9% in 1990

to 35.5% in 2005. During the same period, the forest area in this municipality

decreased from 17.2% (1990) to 14.6% (2005), and mangrove area reduced from

19.9% in 1990 to 6.7% in 2005.

Reducing GOS tends to degrade the environment. Providing GOS is an

effective and efficient developmental approach for overcoming the decline of the

quality of the municipal environment. Bradley (1995) suggested that GOS is an

important component of an urban ecosystem, which significantly contributes to the

environmental, ecological, cultural and economic qualities of life. GOS plays a key

role in refining the livability of cities. In addition, GOS components can produce

oxygen in the air and absorb dust and air pollutant particles. Unfortunately, such

expected functions cannot be achieved unless the area of GOS is sufficient.

Therefore, it is necessary to maintain the GOS area in the city to realize GOSs

function optimally.

Indonesian Spatial Zoning Law No. 26/2007 keeps and requires the public

sector to provide GOS in 20% of the urban area and the private sector to provide

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GOS in 10% of the urban area. However, these requirements have not been satisfied

due to budgetary constraints in the government sector and cost constraints in the

private sector. To lighten the load and to meet the availability of public and private

GOSs, the government must cooperate with public and private parties.

Batam Municipality started a program to involve the private sector in providing

GOS. The law requires the private sector to make various contributions to the

surrounding humans and environment.

1.2. Problem Statements

Rapid development of Batam Municipality has been causing the reducing of

GOS. Batam Municipality development is determined by increasing population and

its activities, indirectly it imposes on high pressure on land use. Existing GOS often

be transformed to other function so that its quantity and quality has been reduced

gradually. Meanwhile more people more GOS needed as environment supplier. The

quality and quantity GOS must be aligned with population growth in order to create

comfortable, productive and sustainable Batam Municipality.

Provision by the public of 20% of the GOS and by the private sector of 10% of

the GOS as mandated by Indonesian Spatial Zoning Law No. 26/2007 had

compliance problems. Meanwhile government has lack of budget to meet the

availability GOS. So that it needs to involve private sector to participate on

provision of GOS.

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1.3. Research Questions

Based on problem statement, specifically this research will focus on research

questions as follow:

1. How is companies perception and awareness of the GOS provision program

in Batam Municipality?

2. What are the opportunity involving private sectors in provision of GOS in

Batam Municipality?

1.4. Research Objectives

The aims of this research are:

1. To analyze companies perception and awareness of the GOS provision

program in Batam Municipality.

2. To investigate the prospect of involving the private sector in providing GOS in

Batam Municipality.

1.5. Research Benefits

The results of this research could contribute to benefits for stakeholders, who

are involved in GOS provision and management such as follows:

1. The research provides recommendations for the local government of Batam

Municipality regarding the policy or program that needs to be implemented to

increase GOS in Batam Municipality.

2. It contributes to theory and practice in science universally.

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1.6. Research Framework

Figure 1.1 shows the framework of this research. This research framework

provides stages to analyze each companys perception and awareness of the GOS

provision program and to investigate the prospect of involving the private sector in

the GOS provision program in Batam Municipality.

1.7. Structure of Thesis

This thesis is organized in several chapters as follows:

Chapter I - Introduction: This chapter describes the research background and

provides an overview of the study area, the research objectives, the research benefits,

the research framework and the structure of the thesis.

Chapter II Literature Review: This chapter explains the literature on the GOS

concept, including public and private roles, environmental perception and

awareness, general concepts of participation, corporate social responsibility and the

justification of the study.

Chapter III Research Methodology: This chapter describes the study area, the

type and stage of research, the design of survey questionnaires and the data analysis.

Chapter IV Questionnaire Results and Analysis: This chapter presents the

results of the questionnaire and discusses each companys character based on its

participation in the GOS provision program and analyzes the prospect of involving

the private sector in the GOS provision program.

Chapter V- Conclusion and Recommendation: This last chapter summarizes the

analytical results and the contribution of this study and offer recommendations.

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Figure 1.1. Research Framework

RESEARCH METODHOLOGY

BACKGROUND OF THE RESEARCH 1. The lack of green open space in metropolitan and large cities in Indonesia. 2. Provision by the public of 20% of the GOS and by the private sector of 10% of the

GOS as mandated by Indonesian Spatial Zoning Law No. 26/2007 had compliance problems.

3. The limited budget of Government for infrastructure can be overcome by involving private sector participation.

LITERATURE OVERVIEW 1. Green Open Space 2. Public and Private Sector Roles for GOS in Indonesian Spatial Planning 3. Environmental Perception and Awareness 4. General Concepts of Participation 5. Corporate 6. Justification of Study

To analyze companies perceptions and awareness of GOS provision program To investigate the prospect of

involving private sector in GOS provision in Batam Municipality

RESEARCH OBJECTIVES

RESULTS 1. Companies perceptions and awareness of the GOS provision program. 2. Prospect to involve the private sector in the GOS provision program. 3. Recommendations

Descriptive, comparison and correlation analysis Analysis prospect

CHAPTER I. INTRODUCTION1.1. Research Background1.2. Problem Statements1.3. Research Questions1.4. Research Objectives1.5. Research Benefits1.6. Research Framework1.7. Structure of Thesis