Investor Presentaiton
Efforts to Accelerate Infrastructure Provision
Land Value Capture (LVC) Scheme
" A policy approach that enables communities to recover and
reinvest economic value increases and increases in economic
productivity that result from public investment and other
government actions. (Lincoln Institute of Land Policy)
Tax Based LVC
Land and Property Tax
Betterment Levies and
Special Assessment
Development Based
LVC
Land Sale and Rent
Collaboration in the development
of LVC Regulation in Indonesia
The implementation of LVC obviously
need an intensive cooperation of all
related stakeholders, such as: National
and Regional Government, SOE & ROE,
International Institution, as well as
higher education agencies with CMEA
as an implementing coordinator.
Tax Increment Financing
(TIF)
Air Right Sale
Joint Development
Land Readjustment
2019
Triple Win LVC
Creating Fiscal
Space
Reducing
Subsidy
Better Urban
Mobility
LVC Benefit
Local revenue from tax and levy
Better city planning and development
Regional growth
Distributed development in urban area
Source: Committee for Acceleration of Priority Infrastructure Delivery (KPPIP)
•
National
and
Regional
Govt
SOE &
ROE
Universit
and other
higher
Internatio
nal
education Institution
agencies
LVC Policy Development Timeline
Finalizing Study on National Value
Capture Framework in Indonesia
2020
Initiate the LVC policy implementation in the form of
legal regulation and pilot projects
Conducting socialization and stakeholder capacity
development on LVC
2021
.
Completing the pilot project modelling process
to find the most appropriate LVC scheme to be
implemented in Indonesia
Completing legal drafting as the regulation on
national LVC policy
2022
•
LVC development and implementation
Conducting socialization to Regional
Government and SOE
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