Inflation Control and Financial Facilities Strategy
Efforts to Accelerate Infrastructure Provision
Regulation improvement to accelerate land procurement process
ā
The Government of Indonesia issued Law No. 2 of 2012 on Land Acquisition for Public Interest, with a purpose to provide certainty
about the land acquisition duration for the Government Contracting Agencies and the Investors. The Law sets an estimated 583
days maximum time to complete the land acquisition process.
For its implementation, the Law No. 2 of 2012 was supported by the Presidential
Regulation No. 71 of 2012 on Land Acquisition Implementation for Developing
Public Facilities, which has been revised into the Presidential Regulation No. 30
of 2015. The Amendment to the Regulation allows a Business Entity to allocate
funding for a land acquisition which can be reimbursed by the Government
following the completion of land acquisition process. With this Regulation, the
land acquisition process is expected not to be delayed by the unallocated
budget or the delay on the budget disbursement.
Law No. 2/2012 was successfully applied in:
1. Palembang - Indralaya section of the Trans
Sumatera Toll Road Project
2. Java North Line Double Track Rail Project
ā
PLANNING
not regulated
PREPARATION
max 289 days
EXECUTION
max 257 days
ASSIGNMENT
OF RIGHTS
max 37 days
Timetable (working days) with an assumption that there is rejection from land owners
TOTAL 583 DAYS
Z
Without rejection, the estimated completion days can be reduced by 15%-20% of the maximum
number of days above
Land Procurement Process as Stipulated in Law No. 2 of 2012
Source: Committee for Acceleration of Priority Infrastructure Delivery (KPPIP)
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