Still long way for implementation of Land Acquisition Law

There is still a long way to go before the implementation of the newly endorsed Land Acquisition Law as the government will need at least a year to prepare for the issuance of regulations to implement the law.

National Development Planning Agency (Bappenas) spokesman Maruhum Batubara said in Jakarta last week that the agency and other related government offices were still preparing the government regulations (PP) for the implementation of the law.

“The law was endorsed in December last year and we are waiting for the PP. Hopefully, the PP will be issued in the course of the year,” Maruhum told The Jakarta Post on Friday.

The House of Representatives (DPR) passed the long awaited Land Acquisition Law for Public Development in December, a legal breakthrough expected to solve prolonged conflicts in the land acquisition process, which often result in long delays in public infrastructure projects.

 Under the new law, people will be forced to sell their property if it is necessary for public infrastructure projects. However, the law guarantees that people whose property is affected by public infrastructure projects will receive fair compensation for their property.

The law, for example, allows a more democratic process by providing a 60-day public consultation period before the acquisition takes place. If members of the public do not wish to sell their land, they will be able to appeal to the State Administrative Court (PTUN), which should issue a ruling after 30 days. Should the public remain dissatisfied with the ruling, they will be given a 14-day period to appeal to the Supreme Court, which should issue a ruling within 30 days.

The price of land to be acquired for public infrastructure projects will be determined by independent appraisal teams to be appointed by the National Land Agency (BPN).

 Businesses had high hopes for the law when it was endorsed in December last year. However, the law can not be enforced until the government issues its implementing regulations, which will also specify the criteria of projects that can be called “public infrastructure projects”, the basis in determining land prices, as well as sanctions for those who divert land allocated for public infrastructure projects into commercial developments.

Maruhum said that the formulation of the PP would take time because they contained numerous technical requirements and details to reduce the possibility of disputes during land acquisitions, an issue which had always been a complex one to deal with.

“The PP will stipulate that public infrastructure projects are only those listed in clause 10 of the Land Acquisition Law and they are, for example, defense projects, public roads, dams, ports, airports and oil and gas and geothermal projects,” he said.

Maruhum added that the PP would also provide more details on how land owners would be compensated if their property was taken by the state for infrastructure projects.

“The law stipulates that compensation can come in various forms other than money. Compensation could mean relocation or even share ownership. The details of these will be regulated in the PP,” he said.

“The PP will also determine an appraisal committee to appraise the objective value of compensation. This appraisal committee might consist of elements from the administration, law enforcers and community representatives,” he added.

Meanwhile, Chicago-based Northwestern University political-economy professor and Indonesian specialist Jeffrey Winters criticized the government’s slowness in following up the endorsement of the law as this could potentially discourage investors.

“One of the most messy and chaotic areas of Indonesian law and regulations is that concerning land. This means poor or inconsistent maps, unclear or overlapping boundaries, multiple claims to the same land, missing or fake documents and multiple jurisdictions all playing confusing roles in settling these disputes,” Jeffrey told the Post.

“Given this mess and so much uncertainty, it is very important that the government structure and implement the new law properly. The question is why it is taking so long to move forward. A year is indeed a long time, even assuming great care is taken in shaping the government regulations,” he added.

“This chronic problem has existed for decades, and investors are encouraged that the land acquisition laws are finally being addressed. But delays mean risks, which prevent investors from moving forward with their plans,” he said further.