Law No. 11 of 2020 concerning Job Creation (“Job Creation Law”) aims to realize a prosperous, fair, and prosperous Indonesian society through national development. In order to accelerate the realization of these goals, the Government changed various regulations that can encourage the investment ecosystem, and the acceleration of the National Strategic Project, including arrangements regarding the procedure of land acquisition for development in the public interest.
Scope of The Procedure for Acquisition of Land for Development in Public Interest
Previously in Law No. 2 of 2012 concerning Land Acquisition for Development in the Public Interest (“Law 2/2012”), the maintenance of land in the public interest was used for 18 (eighteen) types of development. However, after the enactment of the Job Creation Law, the enforcement of land in the public interest is now used for 24 (twenty-four) types of development. The same provision is reaffirmed in Government Regulation No. 19 of 2021 concerning the Implementation of Land Acquisition for Development in the Public (“GR 19/2021”).
The points added in connection with the scope for land acquisition for development in public interest are as follows:
- upstream and downstream oil and gas industrial estates initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or domestic owned enterprises;
- special economic areas initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or local-owned enterprises;
- industrial estates initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or local-owned enterprises;
- tourism areas initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or local-owned enterprises;
- food security areas initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or local-owned enterprises; and
- technology development areas initiated and/or controlled by the Central Government, Local Government, state-owned enterprises, or local-owned enterprises.
The Stages of Land Acquisition for Development in Public Interest
All agencies that require land for the development of public interest (“Agencies”) are required to prepare a land acquisition plan which must be based on:
a. Spatial plan; and
b. Development priorities, which are listed in: 1) Medium-term development plan; 2) Strategic plan; and/or 3) Agency work plan.
The Land Acquisition Plan is prepared in the form of a land acquisition planning document containing at least:
a. the aims and objectives of the development plan;
b. Suitability of Spatial Use Activities;
c. national/regional development priorities;
d. land location;
e. the required land area;
f. general description of land status;
g. the estimated time period for the implementation of Land Procurement;
h. the estimated timeframe for development implementation;
i. estimated land value;
j. budget plan; and
k. preference form of Compensation.
After receiving the land acquisition planning document, the Governor carries out the stages of Land Acquisition preparation activities and forms a Preparation Team.
The Preparatory Team have tasked of:
a. carry out notification of development plans;
b. carry out initial data collection on the location of the development plan;
c. carry out Public Consultation on development plans;
d. prepare the Determination of the location of development;
e. announce the Determination of Development Locations for Public Interest; and
f. carry out other tasks related to the preparation of Land Acquisition for development in the Public Interest assigned by the governor.
The implementation of land acquisition is carried out by the head of the Regional Office of the National Land Agency (in Bahasa: Kepala Kantor Wilayah Badan Pertanahan Nasiona ) no later than five working days after the receipt of the application for land acquisition.
The implementation process includes:
a. Implementation preparation;
b. Inventory and identification of data;
c. Determination of appraisers;
d. Provision of compensation;
e. Release of land acquisition object; and
f. Documentation of land acquisition administration data.
The Head of Land Acquisition Executor (in Bahasa: Ketua Pelaksana Pengadaan Tanah) will then submit the results of the land acquisition to the Agency together with the land acquisition data no later than 14 days after the relinquishment of the rights to the object of land acquisition.
Compensation Under Special Circumstances
In the event that the Entitled Party requires Compensation under special circumstances, the Land Acquisition Executor prioritizes the provision of Compensation. What is meant by “special circumstances” is a situation where the Entitled Party needs Compensation money immediately for an urgent need. This urgent need must meet the following requirements:
- There are urgent circumstances, including natural disasters, education costs, worship, medical treatment, debt payments, and/or other urgent circumstances; and
- Evidenced by a letter from the village head.
Small-Scale Land Acquisition
In the context of efficiency and effectiveness, land acquisition for public interest with an area of not more than 5 (five) hectares, may be carried out:
- directly by the Agency Requiring Land with the Entitled Party, by way of buying and selling, exchanging, or other agreed methods; or
- using the stages of land acquisition as described above.
Land Acquisition to Facilitate National Strategic Project
The Central Government and/or Local Governments are responsible for providing land for National Strategic Projects. However, in the event that the Central Government and/or Local Government cannot provide the land, any land acquisition carried out related to a national strategic project can be carried out by:
- State-owned enterprises and regional-owned enterprises with special assignments; and
- Business entities that have obtained power of attorney based on agreements from relevant state institutions (such as state institutions, ministries, non-ministerial government agencies, etc.) in the context of providing infrastructure for the public interest.
Electronic Land Acquisition System
GR 19/2021 stipulates the electronic system as the main means in the implementation of land acquisition activities carried out for the development of the public interest. As a result, the results of the implementation of electronic land acquisition in the form of data, information and related electronic documents, are currently recognized as valid legal evidence and an extension of legal evidence in accordance with the procedural law in force in Indonesia.
Any information contained in this Article is provided for informational purposes only and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included in this Legal Update without seeking legal or other professional advice. This document is copyright protected. No part of this document may be disclosed, distributed, reproduced or transmitted in any form or by any means, including photocopying and recording or stored in a retrieval system of any nature without the prior written consent of SIP Law Firm.
 Article 10 of Law 2/2012, before the amendment to the Job Creation Law
 Article 10 10 Law 2/2012, as amended through Article 123 number 2 of Job Creation Law
 Article 2 GR 19/2021
 Article 3 GR 19/2021
 Article 4 GR 19/2021
 Article 6 paragraph GR 19/2021
 Article 9 GR 19/2021
 Article 11 paragraph (1) GR 19/2021
 Article 53 paragraph (3) and paragraph (5) GR 19/2021
 Article 115 paragraph (1) GR 19/2021
 Article 86 paragraph (3) GR 19/2021
 Article 126 paragraph (1) GR 19/2021
 Article 131 paragraph (1), paragraph (2), and paragraph (3) GR 19/2021
 Article 132 paragraph (1) GR 19/2021
 Article 132 paragraph (3) and paragraph (4) GR 19/2021