Bank Indonesia Policy Mix

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 Universit and other higher education agencies LVC Policy Development Timeline Finalizing Study on National Value Capture Framework in Indonesia 2020 SOE & ROE Internatio nal Institution 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 171

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