THE INFLUENCE OF PERFORMANCE AND POLICY OF LOCAL INSTITUTIONS AS WELL AS COMMUNITY PARTICIPATION ON THE GROWTH OF SLUMS IN URBAN AREA OF MAKASSAR CITY INDONESIA

The history of settlements development began with a set of settlements in a small scale, then along with the population growth in the urban area. Latter, it developed into a medium city and eventually developed into a big city. The objectives of this study were to analyze the performance and policies, also the community participation on the growth of slums in the urban area and to analyze the slum factors in the growth of slums in urban area. Data collected from 250 respondents from 2 sub-districts of 14 subdistricts, namely Panakukang Sub-district and Mariso Sub-district. The method of discussion employs a statistical approach, Structural Equational Modeling-Partial Least Square (SEM-PLS). The results of the analysis show that 1) the path coefficient of institutional performance on the institutional policy was 0.735 with t-statistic 20.2356 (p <0.05), it means that the performance aspects significantly influenced policy; 2) the path coefficient of institutional performance on community participation was 0.162 with t-statistics 2.037 (p <0.05), it means that the aspects of performance significantly influenced community participation; 3) The path coefficient of institutional policy on the community participation was 0.640 with t-statistic 8.635 (p <0.05), it means that the policy had a significant effect on community participation; 4).