In regulations and legislation it is called compensation for losses, not "compensation for profit." This means that the losses suffered by the party whose land was forced (not by choice, but must) be released for development purposes are compensated for the losses, with various alternative forms of compensation, namely (i) money; (ii) replacement land; (iii) resettlement; (iv) share ownership; or (v) other forms agreed to by both parties.
Provision of compensation in the form of money is carried out through banking services and in Rupiah currency. Compensation in the form of money is provided no later than 17 (seventeen) days after the submission of validation results by the Land Acquisition implementer. In certain cases, compensation can be provided for more than 17 (seventeen) days. Certain cases are situations where: (i) the available budget is insufficient, (ii) the Entitled Party is not present when the Compensation payment schedule is scheduled; or (iii) there are security, economic, political, social, cultural and/or other technical issues (Permen ATR/BPN No.19/2021, Article 117).
Form of compensation in the form of: (i) replacement land ; (ii) resettlement; (iii) share ownership, not discussed now. Meanwhile, compensation in "other agreed forms" is a combination of 2 (two) or more forms of compensation and is carried out on the basis of an agreement in the form of compensation. The period for providing Compensation in another agreed form shall be the longest period of time for providing the form of Compensation. (Permen ATR/BPN No.19/2021, Article 122).
For example, a party has the right to choose compensation in the form of "replacement money and land", then the longest time to provide compensation is 6 months, because compensation is in the form of Replacement land must be given a period of 6 months. Meanwhile, compensation in the form of money must be given within 17 days. So the longest time in this case is 6 months.
Another example, for example compensation in the form of money and resettlement, the longest time is 12 months, bearing in mind that compensation in the form of resettlement must be provided within a maximum period of 12 months. Meanwhile, compensation in the form of money must be given to the entitled party within 17 days. So the longest period for providing compensation in the form of money and resettlement is 12 months.
Published by :
Rimun Wibowo
Chairman & Senior Principal of Social Safeguards at LPM EQUATOR | The Indonesia NLCs [Networks of Learning Centers for Environmental & Social Standard]