Land Procurement in the Public Interest and the Law



 
Marcell Sihombing, Kartini L. Makmur


ojk

Workshop event entitled "Obstruction and Solutions to Land Procurment Probelm for the Purpose of Infrastructure  Construction. Photy by: Talks Hukumonline.


 

The government is continuing with its efforts to accelerate Indonesia’s competitiveness and economic development, in line with its new Mid-Term National Development Plan (RPJMN) for the 2015 - 2019 period. The current focus of this process of acceleration is on the streamlining of various nationally strategic projects, particularly the construction of infrastructure. Unfortunately however, the land procurement so vital for these infrastructure projects has become a major obstacle.
 
According to Aslan Noor, Head of the Sub-Directorate of Government Land Utilization at the Ministry of Agrarian Affairs and Spatial Planning’s Directorate General of Land Procurement, the legality of such procurement will be the key to successfully realizing infrastructure projects across the country. During his address at a hukumonline workshop event entitled Obstruction and Solutions to Land Procurement Problems for the Purpose of Infrastructure Construction,Mr. Noor highlighted three legal land-procurement issues relating to the construction of infrastructure issues which he claimed had to be taken into consideration. These issues break down as follows:
 
1.     The Proportionality Principle

Article 4 of Law No. 2 of 2012on Land Procurement in the Public Interest (Land Procurement Law) mandates for the government to guarantee the availability of land for the purpose of development in the public interest (e.g. infrastructure-construction projects). Moreover, the Land Procurement Law also mandates for both central and regional level governments to provide sufficient funding for such projects.
 
Contrary to this provision however, many projects often grind to a halt due to members of the general public refusing to hand their land over to the government. By way of example, Mr. Noor pointed to the construction of the new toll roads connecting Kemayoran and Kampung Melayu, Sunter and Rawa Buaya, and Pasar Minggu and Casablanca, as well as the Batang power-station project (Pembangkit Listrik Tenaga Uap - PLTU), all of which have come to a halt as a result of land-procurement issues.
 
“The Land Procurement Law adheres to the proportionality principle. This means that land procurement in the public interest must proportionately take the interests of both the government and the general public into consideration. However, dissemination of vital information has been lax as regards the general public’s obligation to relinquish their land titles to the government,” Mr. Noor asserted.
 
Mr. Noor further pointed to Article 5 of the Land Procurement Law, which states that any parties in possession of land titles must relinquish these rights to the government should a process of land procurement in the public interest be underway. However, Mr. Noor also emphasized that landowners are not forced to immediately relinquish their land titles, as they are entitled to receive sufficient compensation if such a demand for relinquishment is based upon a final and binding court decision.
 
2.    Public Participation

Any process of land procurement for an infrastructure project in the public interest is subject to a four-stage process. Project planners are obliged to: (i) submit detailed location data for the intended land to the relevant provincial government; (ii) arrange for a public consultation; (iii) secure a location designation; and (iv) wait for the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency to complete the relevant land-procurement procedures (e.g. land assessment, negotiation, land acquisition).
 
Note that public participation is an important element of any land-procurement process undertaken by a land-procurement body (lembaga pengadaan tanah), and should encompass the entire process, from planning to any actual act of land acquisition. The result of a public-consultation process carried out during the land-procurement preparatory stage will determine whether the intended location can ultimately be acquired, or whether another location will have to be sought.
 
“Should there be any an objections [from the local community] during the public-consultation process, then another public consultation must be organized. Moreover, if a civil lawsuit is filed at a district court which challenges the demand for land procurement, and the respective court finds in favor of the lawsuit, then the land procurement in question cannot take place in the intended location,” Mr. Noor concluded.
 
3.    Payment of Compensation
 
Article 9 (2) of the Land Procurement Law guarantees that any land procurement in the public interest must grant fair and proper compensation to land owners. In his address, Mr. Noor asserted that the government is required to offer proper compensation commensurate with or even higher than current market prices, so that any soon-to-be former landowners will be able to enjoy a better standard of living once they relinquish their land titles.
 
“Underlying the government’s authority to acquire land in the public interest is the obligation to promote better standards of living for former owners. This obligation is stipulated under Article 1.1. of Presidential Regulation No. 36 of 2005 juncto Article 1.3 of Presidential Regulation No. 65 of 2006,” asserted Mr. Noor.
 
Mr. Noor also admitted that negotiations between the appointed committee responsible for a given land-procurement project [panitia pengadaan lahan] and the community often failed to reach an amicable solution. In order to anticipate any objections being raised regarding construction projects, Mr. Noor suggested a process of consignment [konsinyasi] be employed, a form of government compensation which is deposited with local district courts in order that it then be disbursed to the relevant former landowners, as stipulated under Article 42 of the Land Procurement Law.
 
“This kind of compensation will be disbursed to former landowners who refuse to accept the results of any negotiation process. Consignment does not involve the forced acquisition of land from landowners however, which is why it needs to be further deliberated by the relevant appointed committees, so that any further obstructions can be avoided in the future,” Mr. Noor concluded.
 
(hs/sp)


 
Marcell Sihombing, Kartini L. Makmur


ojk

Workshop event entitled "Obstruction and Solutions to Land Procurment Probelm for the Purpose of Infrastructure  Construction. Photy by: Talks Hukumonline.


 

The government is continuing with its efforts to accelerate Indonesia’s competitiveness and economic development, in line with its new Mid-Term National Development Plan (RPJMN) for the 2015 - 2019 period. The current focus of this process of acceleration is on the streamlining of various nationally strategic projects, particularly the construction of infrastructure. Unfortunately however, the land procurement so vital for these infrastructure projects has become a major obstacle.
 
According to Aslan Noor, Head of the Sub-Directorate of Government Land Utilization at the Ministry of Agrarian Affairs and Spatial Planning’s Directorate General of Land Procurement, the legality of such procurement will be the key to successfully realizing infrastructure projects across the country. During his address at a hukumonline workshop event entitled Obstruction and Solutions to Land Procurement Problems for the Purpose of Infrastructure Construction,Mr. Noor highlighted three legal land-procurement issues relating to the construction of infrastructure issues which he claimed had to be taken into consideration. These issues break down as follows:
 
1.     The Proportionality Principle

Article 4 of Law No. 2 of 2012on Land Procurement in the Public Interest (Land Procurement Law) mandates for the government to guarantee the availability of land for the purpose of development in the public interest (e.g. infrastructure-construction projects). Moreover, the Land Procurement Law also mandates for both central and regional level governments to provide sufficient funding for such projects.
 
Contrary to this provision however, many projects often grind to a halt due to members of the general public refusing to hand their land over to the government. By way of example, Mr. Noor pointed to the construction of the new toll roads connecting Kemayoran and Kampung Melayu, Sunter and Rawa Buaya, and Pasar Minggu and Casablanca, as well as the Batang power-station project (Pembangkit Listrik Tenaga Uap - PLTU), all of which have come to a halt as a result of land-procurement issues.
 
“The Land Procurement Law adheres to the proportionality principle. This means that land procurement in the public interest must proportionately take the interests of both the government and the general public into consideration. However, dissemination of vital information has been lax as regards the general public’s obligation to relinquish their land titles to the government,” Mr. Noor asserted.
 
Mr. Noor further pointed to Article 5 of the Land Procurement Law, which states that any parties in possession of land titles must relinquish these rights to the government should a process of land procurement in the public interest be underway. However, Mr. Noor also emphasized that landowners are not forced to immediately relinquish their land titles, as they are entitled to receive sufficient compensation if such a demand for relinquishment is based upon a final and binding court decision.
 
2.    Public Participation

Any process of land procurement for an infrastructure project in the public interest is subject to a four-stage process. Project planners are obliged to: (i) submit detailed location data for the intended land to the relevant provincial government; (ii) arrange for a public consultation; (iii) secure a location designation; and (iv) wait for the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency to complete the relevant land-procurement procedures (e.g. land assessment, negotiation, land acquisition).
 
Note that public participation is an important element of any land-procurement process undertaken by a land-procurement body (lembaga pengadaan tanah), and should encompass the entire process, from planning to any actual act of land acquisition. The result of a public-consultation process carried out during the land-procurement preparatory stage will determine whether the intended location can ultimately be acquired, or whether another location will have to be sought.
 
“Should there be any an objections [from the local community] during the public-consultation process, then another public consultation must be organized. Moreover, if a civil lawsuit is filed at a district court which challenges the demand for land procurement, and the respective court finds in favor of the lawsuit, then the land procurement in question cannot take place in the intended location,” Mr. Noor concluded.
 
3.    Payment of Compensation
 
Article 9 (2) of the Land Procurement Law guarantees that any land procurement in the public interest must grant fair and proper compensation to land owners. In his address, Mr. Noor asserted that the government is required to offer proper compensation commensurate with or even higher than current market prices, so that any soon-to-be former landowners will be able to enjoy a better standard of living once they relinquish their land titles.
 
“Underlying the government’s authority to acquire land in the public interest is the obligation to promote better standards of living for former owners. This obligation is stipulated under Article 1.1. of Presidential Regulation No. 36 of 2005 juncto Article 1.3 of Presidential Regulation No. 65 of 2006,” asserted Mr. Noor.
 
Mr. Noor also admitted that negotiations between the appointed committee responsible for a given land-procurement project [panitia pengadaan lahan] and the community often failed to reach an amicable solution. In order to anticipate any objections being raised regarding construction projects, Mr. Noor suggested a process of consignment [konsinyasi] be employed, a form of government compensation which is deposited with local district courts in order that it then be disbursed to the relevant former landowners, as stipulated under Article 42 of the Land Procurement Law.
 
“This kind of compensation will be disbursed to former landowners who refuse to accept the results of any negotiation process. Consignment does not involve the forced acquisition of land from landowners however, which is why it needs to be further deliberated by the relevant appointed committees, so that any further obstructions can be avoided in the future,” Mr. Noor concluded.
 
(hs/sp)
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