Abstract

The patterns of land utilization and infrastructure investment serve as means that can be employed to create opportunities for increasing the economic value of land. This research aims to formulate a Land Value Capture (LVC) model as a non-government financing source that can be utilized for financing the development of the Pekalongan City Station area with Transit-Oriented Development (TOD) concepts. The analytical tools used include multiple regression analysis, overlay, descriptive and literature studies, as well as SWOT analysis. The study results demonstrate that the distance to the commercial center is the most influential variable in increasing land value. The closer the proximity to the commercial center, the higher the land value will be. Meanwhile, areas considered potential for the application of LVC instruments are the Hoegeng Stadium area, the Ex Sri Ratu area, shops on its east side, and the shops east of the station. LVC instruments that can be applied include land value tax, joint development, land readjustment with diversification strategies.

Keywords: Land Value Capture (LVC), Pekalongan City Station, Transit Oriented Development (TOD)