The Government has recently issued a draft Presidential Regulation concerning The Acquisition of Land for Public Interest Developments (the “Draft Regulation”). The Draft was created to anticipate the increasing number of public infrastructure developments which requires the use of private lands.

Land acquisition for development of public infrastructure is generated through (1) transfer of land title or release of land title from its previous owners, (2) revocation of land title by the government. Land acquisition for purposes other than national development is conducted through sale and purchase of land or other ways as agreed by the parties.

The Draft explicitly stated that revocation of land title must be conducted in accordance with Law No. 20 Year 1961 Concerning revocation of land title and objects on top of it. Provision of land titles can only be conducted through the city landscape planning mechanism as approved by the city councils. If a specific land has been designated for public infrastructure, the Draft stated that all physical and legal actions toward the land must obtain prior approval from the Governor/Mayor of respective regions.

All land acquisitions for public infrastructures must be conducted with the aid of land provision committee, formed by the heads of regional governments of each regions. The land provision committee will be tasked with investigating the land conditions and buildings on its top on their legal status, values, and to suggest relevant compensation fud to the regional government. The committee will witness, supervise, administer and keep all documents related to the transfer of land title and related objects. The draft reiterated the importance of deliberation (musyawarah) in settling land related cases.

Construction of the public infrastructure may commence only if 50% of landowners with more than 50% of overall land width subjected to the acquisition has agreed to the amount of compensation and such amount has received. Construction may also commence to location formerly belong to those disagreeing the compensation amount, provided that the compensation for them has been transferred to the Local Court.

The Draft  lists 21 different public interest development initiatives which may require the acquisition of land. The enactment of this Draft allows all other associated legislation to remain in force so long as it does not conflict with the provisions contained in this Draft. The enactment of this Draft will result in the revocation of Presidential Decree No. 55 of 1993 on the Acquisition of Land in the Public Interest.