Transforming Peri-Urban Areas: The Role of Public-Private Interactions, Commercial Growth, and Informal Spatial Negotiations
Popi Puspitasari1, Rabiyatul Adawiyah2, Turohman3, Lucia Helly Purwaningsih4, Muhammad Oliver Ensor Bin Silini5

Faculty of Civil and Engineering and Planning, Universitas Trisakti

Abstract

The rapid expansion of urban areas into peripheral zones presents significant challenges in sustainable urban planning, especially regarding private-sector-driven housing development and its impact on spatial investments and the transformation of public and private functions. Peri-urban areas, situated at the urban-rural boundary, are increasingly recognized as vital spaces for addressing issues of livability, spatial justice, and commercial growth. This systematic literature review examines the dynamics of livable space in urban peripheries, focusing on three interconnected dimensions: public-private space interactions, commercial activity expansion, and spatial morphology changes. Drawing on over fifty studies from the past two decades, the review highlights how middle-class housing developments have fueled space commercialization, leading to non-inclusive investments. Key findings include the transformation of lower-middle-class housing into rental properties, the dominance of private ownership, the conversion of residential areas into entertainment and dining spaces, and informal negotiations over public space use between local communities and formal institutions. These informal agreements enable more flexible space usage that often bypasses formal regulations.
This dynamic reveals a complex relationship between space commercialization, morphological changes, and the emergence of informal regulations in response to gaps in urban planning policies. While adaptive practices may present economic opportunities, they also risk generating spatial inequalities that undermine livability. The review provides critical insights into challenges and opportunities for more inclusive, sustainable peri-urban development, emphasizing the need for flexible regulatory approaches to manage public-private space boundaries. Finally, the article suggests future research avenues, particularly the development of integrated urban policies that balance economic, social, and environmental goals in peri-urban landscapes.

Keywords: Peri-Urban Areas, Public-Private Interactions, Commercial Growth, Informal Spatial Negotiations

Topic: The Concept of Livable Space