Don’t wait for rule on land acquisition law: Minister

The Jakarta Post | May 10, 2012

Public Works Minister Djoko Kirmanto told regional leaders on Wednesday to continue with infrastructure projects and not to wait for a long-delayed presidential regulation to implement the Land Acquisition Law.

“Local governments are reluctant to acquire lands in their area because they are waiting for the regulation,” Djoko said on the sidelines of the Construction National Seminar 2012.

West Java and Banten are the provinces that have postponed the most projects due to the prolonged process to implement the law, Djoko said.

“I am disappointed. We cannot stop working on infrastructure projects. Thus, every land acquisition process has to continue while waiting for the presidential regulation,” Djoko added.

The regulation, which is required for the Land Acquisition Law to take effect, has been scheduled for promulgation in June, six months after the House of representatives passed the initial law.

Separately, Suryo Bambang Sulisto, the chairman of the Indonesian Chambers of Commerce and Industry (Kadin), urged the government on Wednesday to issue the regulation immediately.

Suryo said that the regulation was important and would accelerate projects by providing a mechanism to resolve the land disputes that have become a major impediment to national development.

Meanwhile, Indonesian Employers’ Association (Apindo) chairman Sofjan Wanandi said that the delayed regulation showed that the government was not serious in accelerating infrastructure projects.

“The President promised that the regulation would be issued immediately after the law passed, yet we are still waiting. It means that the government is not serious,” Sofjan told The Jakarta Post.

Sofjan said that Indonesia might lose momentum to accelerate infrastructure development if the regulation was not passed this month, as investors might consider leaving Indonesia.

“That is the reason why our economy will only grow at around 6 percent,” he added.

Before the law was passed, land acquisitions were typically contested, in some cases requiring years to resolve.

The law stipulates that legal proceedings pertinent to land acquisition for government-commissioned infrastructure projects must be completed within 436 working days.

The law also allowed a more democratic process, providing a 60-day public consultation period before acquiring land.

The National Land Agency (BPN) is authorized under the law to assign an independent appraisal team, consisting of independent financial experts with expertise in agrarian issues certified by the BPN, to determine the value of compensation to be paid to land holders.

The valuation process must be completed within 30 days and compensation can be paid in the form of money, re-settlement, land ownership or stock ownership in the government project.

Landowners who disagree with the compensation offer or the proposed land price can file a legal complaint and seek court rulings, up to the Supreme Court level.

Courts were given a maximum of 30 days to rule on such claims. (nfo)


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