The Effect of Toll Road Development on Agricultural Land Conversion in Indonesia: An Empirical Analysis

Abstract

It is essential to undertake infrastructure development, including the construction of toll roads, due to the effects of advancing socioeconomic outcomes. Toll roads have the function of connecting and enhancing accessibility among different regions. In Indonesia, the development of toll roads has recently increased due to a national policy to boost the economic sector by developing regional infrastructure, particularly on Java Island. Although contributing to economic growth, the development of toll roads may result in a negative impact on agricultural land conversion. This paper aims to assess to what extent the effect of regional toll road development contributes to agricultural land conversion in Indonesia. Java Island was selected as a case study due to the extensive construction of the Trans-Java Toll Road, a high population, and as the primary source of agricultural products in Indonesia. A quantitative approach was applied, based on secondary data, including the farmland area and toll road development in certain regencies (Kabupaten) and cities (Kota). Statistical analysis was conducted by examining the significant differences in the growth of wetland rice fields with and without the toll road. The findings reveal that the existence of toll roads has a significant impact on the negative growth of agricultural land. However, this result needs to be verified by other influencing factors.