No more land acquisition problems next year

JAKARTA. The government is hoping that the implementation of a law on land procurement for public infrastructure next year will be able to ease land acquisition problems that have delayed major infrastructure projects, including the US$4-billion Batang power plant in Central Java.

Deputy Public Works Minister Hermanto Dardak said in Jakarta on Tuesday that he hoped there would be no resistance from the public because the implementation of Law No. 2/2012 on land procurement for public infrastructure would give certainty not only to land owners but also to investors of infrastructure projects.

“The law gives certainty to private firms willing to invest in the country’s infrastructure projects,” he said, adding that the law would be fully enforced in January 2015.

Under the new law, people will be forced to sell their property if it is necessary for public infrastructure projects. However, the law guarantees that people whose property is affected by such projects will receive fair compensation.

The law, for example, would create a more democratic process by providing a 60-day public consultation period before acquisition takes place. If members of the public did not wish to sell their land, they would be able to appeal at the State Administrative Court (PTUN), which would issue a ruling in 30 days.

Should the public remain dissatisfied with the ruling, they will be given a 14-day period to appeal to the Supreme Court, which should issue a ruling within 30 days.

The government has thus far continued to use the obsolete land law (Law No. 5/1960) for most infrastructure projects because it has not issued the implementation ruling for the land acquisition law.

Law No. 5/1960 does not take a firm stance on land acquisition for the public interest, unlike the new law.

Hermanto said that the government had failed to meet its five-year target for infrastructure investment of Rp 1,920 trillion (US$ 164,40 billion) due to lingering land acquisition issues. According to him, during the five-year period, investment for infrastructure development only reached about Rp 1,800 trillion.

“We have found that the government’s spending on infrastructure is actually on the rise and the investment from state-owned enterprises is relatively stable. However, the uncertainty in acquiring land has stopped a number of private firms from taking part in the country’s infrastructure projects,” he said.

Hermanto added that the central government had spent Rp 825 trillion on infrastructure projects in 2014, a increase from the initial projection of Rp 560 trillion. Infrastructure spending from the regional budget (APBD) also jumped to Rp 455 trillion from the Rp 355 trillion initially planned.

The investment from state-owned enterprises was in line with the prediction of Rp 340 trillion, while investment from private firms only reached Rp 250 trillion, below its target of Rp 300 trillion, he added.

Many infrastructure projects, including the $4-billion coal-fired power plant to be built in Batang, have been delayed due to land acquisition problems.

Local residents in Batang refused to give up their land for the power plant, which is estimated to cost around Rp 40 trillion. The project requires a total of 226 hectares of land occupying three subdistricts in Ponowareng, Ujungnegoro and Karanggeneng, with some 15 percent hanging in the balance due to objections from locals. (Khoirul Amin)