Buying Land for Infrastructure Not Easy: Public Works Official
Indonesians will have to wait at least three more years before they see the massive Trans Java Toll Road project fully operational, because only around 24 percent of the land for the 650 kilometers of road needed for the project has been freed up. The Jakarta Globe talked to Wijaya Seta, the chief of the land acquisitions department at the Public Works Ministry, about the problems facing the government in acquiring land for infrastructure projects.
Where is the Trans Java Toll Road project at, in terms of progress?
We have acquired 24 percent of the total land area needed for the project. Many people probably do not realize that we only effectively began acquiring land in early 2008. The regulation that previously allowed for land acquisition for public projects, a presidential decree issued in 2005, had not been implemented because many parties were protesting against it. It took until December 2007 to synchronize the law with other regulations. So it was only in early 2008 that we could start freeing up land.
Why were there so many revisions?
People successfully protested against the clause that gave the government the right to seize private land for public projects and compensate owners. They also succeeded in getting the consultation process on acquisitions expanded from 90 to 120 days. Currently, the negotiations with landowners are handled by a team of officials from regional governments and independent appraisers, which represent the Public Works Ministry.
What are the main problems with land acquisition?
First there is the team. Many of these officials have different skill levels in terms of their job. But mostly, people fear the process itself. Government officials are afraid to acquire land because they fear they will be prosecuted for corruption. Meanwhile, people who own the land fear they will not receive proper levels of compensation.
What is the point of view of landowners?
In general, as long as landowners are not influenced by land speculators, it hasn’t been a big problem. But these brokers can persuade people and they make promises to fight for them so the landowners can get a higher price. That causes trouble.
What happens when you reach a deadlock with landowners ?
The time for negotiations is 120 days, but if the landowner still refuses to sell, the land valuation team has the authority to set the price. Landowners can then appeal to regional government heads, who can set a new price. If the landowner continues to refuse to sell, it goes to the courts.
Is the government’s revolving Rp 6.5 trillion fund for land acquisitions by investors enough?
If it worked properly, it would be enough. However, investors only normally return the money to the government after a specific section of land is cleared, and this can take time. This means the fund doesn’t “revolve” properly and the money isn’t being re-lent. Only around Rp 476 billion ($50 million) of the fund has been used for the Trans Java project, and Rp 800 billion for all toll road projects.
When do you think land procurement for the Trans Java Toll Road can be settled?
If the money is there, it should take two or three years. But we have been facing difficulties. For example, when we need Rp 1 trillion for a specific section, the state-budget only allocates Rp 250 billion. For the rest of money we need, we have to wait for next year’s budget allocation.
Where is the Trans Java Toll Road project at, in terms of progress?
We have acquired 24 percent of the total land area needed for the project. Many people probably do not realize that we only effectively began acquiring land in early 2008. The regulation that previously allowed for land acquisition for public projects, a presidential decree issued in 2005, had not been implemented because many parties were protesting against it. It took until December 2007 to synchronize the law with other regulations. So it was only in early 2008 that we could start freeing up land.
Why were there so many revisions?
People successfully protested against the clause that gave the government the right to seize private land for public projects and compensate owners. They also succeeded in getting the consultation process on acquisitions expanded from 90 to 120 days. Currently, the negotiations with landowners are handled by a team of officials from regional governments and independent appraisers, which represent the Public Works Ministry.
What are the main problems with land acquisition?
First there is the team. Many of these officials have different skill levels in terms of their job. But mostly, people fear the process itself. Government officials are afraid to acquire land because they fear they will be prosecuted for corruption. Meanwhile, people who own the land fear they will not receive proper levels of compensation.
What is the point of view of landowners?
In general, as long as landowners are not influenced by land speculators, it hasn’t been a big problem. But these brokers can persuade people and they make promises to fight for them so the landowners can get a higher price. That causes trouble.
What happens when you reach a deadlock with landowners ?
The time for negotiations is 120 days, but if the landowner still refuses to sell, the land valuation team has the authority to set the price. Landowners can then appeal to regional government heads, who can set a new price. If the landowner continues to refuse to sell, it goes to the courts.
Is the government’s revolving Rp 6.5 trillion fund for land acquisitions by investors enough?
If it worked properly, it would be enough. However, investors only normally return the money to the government after a specific section of land is cleared, and this can take time. This means the fund doesn’t “revolve” properly and the money isn’t being re-lent. Only around Rp 476 billion ($50 million) of the fund has been used for the Trans Java project, and Rp 800 billion for all toll road projects.
When do you think land procurement for the Trans Java Toll Road can be settled?
If the money is there, it should take two or three years. But we have been facing difficulties. For example, when we need Rp 1 trillion for a specific section, the state-budget only allocates Rp 250 billion. For the rest of money we need, we have to wait for next year’s budget allocation.