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Land acquisition law due now: Govt
Without appropriate regulations, the biggest problems infrastructure projects face are in land acquisition, particularly in the construction of new roads, a minister says
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ithout appropriate regulations, the biggest problems infrastructure projects face are in land acquisition, particularly in the construction of new roads, a minister says.
Land acquisition problems have delayed many road projects in Indonesia,National Development Planning Minister Armida Alisjahbana said Monday.
The Trans-Java toll roads, for example, an infrastructure project due to be completed in 2014, may not be completed on schedule because it has been hampered by numerous obstacles, particularly land acquisition
diffi culties.
“If we want to fi nish the Trans-Java toll roads by 2014 as scheduled, we need to resolve land acquisition
regulations,” said Armida, who also chairs the National Development Planning Agency (Bappenas).
Coordinating Economic Minister Hatta Rajasa said recently that the government would soon submit to
the House of Representatives a draft law on land acquisition that would ensure fair compensation for property
owners affected by public infrastructure projects. He said the proposed law would also be able to “force” land owners to sell their land for public use, in exchange for fair compensation.
Bappenas deputy chairman Dedy Supriadi Priatna said the government would soon decide the connectivity-related infrastructure projects to be developed between 2011 and 2014.
“I cannot mention which projects will be prioritized before discussing them with Vice President Boediono. He will decide which domestic connectivity projects will be followed up,” Dedy said, adding that the decision would be made at the end of October.
Obstacles in terms of regulations and fi nancing schemes also needed to be resolved so that the domestic
connectivity development program (which includes the Trans-Java toll roads) can be realized by 2014, he said.
If the government is serious about completing the connectivity-related infrastructure projects by 2014, the
proposed law on land acquisition would need to be implemented this year, he said.
Armida added that the government was committed to increasing its budget for infrastructure development.
According to the proposed 2011 state budget, the government has allocated Rp 126 trillion (US$14.11 billion) toward infrastructure development next year, far more than the Rp 108 trillion allocated in the revised 2010 state budget.
As part of the establishment of the ASEAN Economic Community (AEC) in 2015, the government is promoting the development of domestic connectivity, as a step toward the creation of the ASEAN single market.
Under the AEC, Indonesia and its neighboring countries will be integrated in the ASEAN context in three main sectors — goods and services, investment and skilled labor.
Working toward the establishment an ASEAN single market and production base, the ASEAN Connectivity
Master plan was endorsed by ASEAN leaders at the 4th AEC Council meeting in Da Nang, Vietnam,
on Aug. 25. (ebf )
