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ifficulties in acquiring land and inconsistency in the implementation of regulations are still the major hurdles impeding regions in developing their infrastructure, regional leaders and stakeholders say.

South Sumatra Governor Alex Noerdin said that investors had always been hesitant to invest in toll-road projects because of the notorious difficulties in acquiring land.

“Investors will never be interested in investing in toll roads, It can take at least 20 years to acquire the land,” Alex, who is also the chairman of the Sumatra Governors’ Forum, said on the sidelines of the 2012 Indonesian International Infrastructure Conference and Exhibition at the Jakarta Conference Center.

Alex hoped that the recently issued presidential regulation on land acquisition would finally be able to resolve the issues surrounding land procurement for infrastructure projects.

Alex added that Sumatra governors were ready to apply the regulation for acquiring lands needed for the Trans-Sumatra Highway project, which will connect Lampung in the southern part of Sumatra and Aceh, which is located in the northern part of the island.

The road has been planned since 2005 but has run into the sand due to land problems and poor planning.

Alex also stressed that it was important for the central government to ensure consistent implementation of its own regulations at the regional level to provide a better investment climate for investors.

“We must stop changing the rules every single time,” Alex said.

The Sumatra region, is among the country’s commodity powerhouses, and is one of the six economic corridors planned to be developed under the Acceleration and Expansion of Indonesia’s Economic Development Master Plan (MP3EI) program.

Alex said that it was crucial for the central government to fully live up the to the spirit of MP3EI.

“The MP3EI basically aims to reduce bureaucracy by having fewer regulations that can inhibit infrastructure projects from being launched,” he said.

“But in reality this has not happened.”

Another commodity powerhouse, Kalimantan, is also facing the same issues regarding land and inconsistent regulations.

East Kalimantan Governor Awang Farouk said that as of now, the central government had yet to officially issue a clear regulation on the region’s spatial planning.

Farouk said that the issues surrounding the spatial planning had made it difficult for East Kalimantan to fully develop its food estate cluster, which was important for the country to achieve food independence.

The main location of the cluster is in Delta Kayan Bulungan, and it is planned to also cover Berau, Kutai Kertanegara, Nunukan, Penajam and Paser. The cluster will cover an estimated 200,000 hectares of area upon completion, and will merely need around Rp 42 billion (US$4.3 million) in funding.

Coal mining company PT Arutmin Indonesia chief executive officer Faisal Firdaus said that legal uncertainties were also a major issue that had to be faced by mining companies operating in Kalimantan.

“Illegal mining activities are taking place throughout Kalimantan. In our own exploration area alone, there are at least 64 spots of illegal mining activities that have got underway without being stopped by law enforcers,” Faisal said.

Faisal added that mining companies also often faced confusion when it came to land-usage permits.

“Mining companies often receive permission to conduct mining in an area that is also regulated as a nature reserve area,” he said.

The issues in Sumatra and Kalimantan are just a small sample of the frustrations endured by investors wanting to invest in infrastructure projects.

A report from the Committee for the Expansion and Acceleration of Indonesian Economic Growth (KP3EI) revealed that other corridors also face similar problems.

Investors still face difficulties in acquiring land needed for the Rp 4.7 trillion Soekarno-Hatta Airport expansion project in Tangerang, Banten, located in the Java corridor of the MP3EI.

According to the KP3EI report, the Tangerang regional administration has still not taken the necessary steps to acquire the needed land.