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Government launches scheme to fund land acquisition for infrastructure projects
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Finance Minister Sri Mulyani Indrawati (Antara Photo/Agung Rajasa)
T
he Finance Ministry through its State Asset Management Agency (LMAN), a public agency responsible for state asset management, launched on Tuesday a new scheme to fund land acquisition for the country’s national strategic projects (PSN).
As part of the new scheme, two public bodies, the Toll Road Regulatory Agency (BPJT) and the Public Works and Public Housing Ministry, signed a memorandum of understanding (MoU) with 23 toll road companies (BUJTs).
Among the 23 companies are state-owned construction firm PT Hutama Karya and PT Jasamarga Manado Bitung, a subsidiary of state-owned toll road operator Jasa Marga that is responsible for the Manado-Bitung toll road development project in North Sulawesi.
(Read also: Road project hampered by complicated state-land acquisition)
“Infrastructure development is vulnerable to delays. I’ll ask LMAN to study and share its knowledge to solve the issue [of land acquisition],” said Finance Minister Sri Mulyani Indrawati in her speech during the launch.
Land acquisition is a significant hurdle faced by the Indonesian authorities in infrastructure development.
Under a 2016 presidential regulation, LMAN should plan for funding and the utilization of land banks as well as pay compensation for land acquisition to support the government’s infrastructure development programs.
The agency was approved in 2015 by the House of Representatives as a public service agency under the Finance Ministry’s Directorate General of State Assets. The agency commenced operations in December last year.
The government allocated the agency state capital worth Rp 16 trillion (US$1.2 billion) and Rp 20 trillion in the 2016 and 2017 state budgets, respectively. (bbn)
