ABSTRACT
Local governments in Indonesia use both N-NDOs and NDOs in exchange for development permits. Especially in the case of Surabaya City, apart from a small retribution that has to be paid by a developer to get the permit (IMB), a free cession of fixed percentages of land for public infrastructure is also regulated in local bylaws, but, in practice, it leaves room for negotiating the form of infrastructure and hence, a form of ‘not-pure’ NDO. Interestingly, a special ‘corporate social responsibility’ (CSR) law offers one more possibility for the local government to negotiate with developers to provide public infrastructure. Often this occurs after development has taken place, and is not related to land-use regulation decisions. However, some municipalities, including Surabaya, use this law as an NDO, i.e. to negotiate, as part of the process of granting development permit, contributions from private companies to public facilities and to improve the social and physical conditions in the surroundings of the development area. There are, however, some concerns about the lack of transparency in the negotiations.
