Who Can Own Land?

Who Can Own Land?

Who Can Own Land?

Who may carry out land acquisition for development in the public interest? Those who may carry out land acquisition are agencies that require land.
The agency that needs the land is the government, which means that in this case non-government (private business entities) are not included or in other words are not bound by land procurement regulations, but they may use their own wishes to refer to land procurement regulations, for example because the business entity has support. international donors who require the implementation of social safeguards, so to facilitate the land acquisition process, some processes refer to government regulations, for example implementing land appraisals by public appraisers as a material for negotiating land prices. So it is clear here that the provincial government, district/city government can also act as agencies that need land, not just the [central] government.
[Private] business entities that obtain authority based on an agreement with the government are exempt from being bound by land acquisition regulations. Business entities that obtain authority based on an agreement with the government are actually bound by land acquisition regulations as is the government as explained previously.
Now the government that can give power to the private sector in this context includes state institutions, ministries, non-ministerial government institutions, provincial governments, district/city governments, state-owned legal entities/state-owned enterprises that receive special assignments from the Central Government/Regional Government in the context of provision of infrastructure for the Public Interest. For example, Government and Business Entity Cooperation (KPBU) or Public Private Partnership (PPP) is cooperation between the Government and Business Entities in the provision of infrastructure and/or services for the public interest referring to specifications previously determined by the government, which partly or wholly use natural resources. business entity by paying attention to the distribution of risks between the parties.
Things that are not in Law no. 2/2012, but after UUCK No. 11/2020 there are additional agencies that need land, namely the Land Bank Agency and Business Entities that have agreements as explained above.
As for BUMN/BUMD, both in regulations before and after the UUCK, they remain as agencies that need land, as long as the state-owned legal entity/state-owned enterprise/regional-owned enterprise "has a special assignment from the Central Government/Regional Government."

 


Published by :

Rimun Wibowo

Chairman & Senior Principal of Social Safeguards at LPM EQUATOR | The Indonesia NLCs [Networks of Learning Centers for Environmental & Social Standards]