Gov't completes land acquisition regulation deliberations

National Land Agency (BPN) head Joyo Winoto says that the deliberations on the presidential land-acquisition regulation have finished and that the crucial issue on old project transitions has been resolved.

“Transitions of old projects was the main issue during the deliberation process. There were intensive discussions on whether old projects -- which are already underway -- should be included under the new land acquisition law and regulation or not,” Joyo said in Jakarta on Tuesday.

“Based on the latest coordination meeting, old projects have two years at the most to be completed using the former regulations. If they are not completed within that time, they will be required to use the new law and the new regulation,” he added.

The long-awaited law was passed at the House of Representatives in December and is awaiting an enacting regulation before it can enter into force.

The law is expected to provide more certainty for government-backed infrastructure projects. The law, among several others, sets a 436-day time frame to resolve all legal proceedings pertinent to a given land acquisition. Previously, contested land acquisitions took several years to resolve.

The law also ensures a more democratic process for land acquisitions by offering 60 days for a public consultation process. It also gives the National Land Agency (BPN) the authority to appoint an independent appraisal team, which will comprise independent financial experts focusing on agrarian issues and certified by the agency, to establish compensation levels for land owners.

According to the new law, the valuation process must be completed in 30 days and can be paid either in cash, a resettlement benefit, or in the form of land or stock ownership in the government project.