Developer: Protected Paddy Land Policy Hinders Investment
The Association of property developers in the Solo Raya area, Central Java, considers the Protected Paddy Land (LSD) policy to hinder the investment climate and the development of affordable housing for the people. They view the policy as unsynchronised between the central and local governments, thus triggering overlapping regulations.
“Legal uncertainty impacts the locking of Spatial Utilisation Activity Suitability Permits (KKPR). Many developers have legally acquired land and paid taxes, but now that land is claimed as LSD,” said the Chairman of the National Association of Simple Healthy Houses Developers (Apernas) Solo Raya, Budiyono, at the Universitas Sebelas Maret (UNS) campus in Solo on Monday, 13 April 2026.
According to him, this situation causes several housing projects, especially for low-income communities (MBR), to be halted. The impact also has the potential to disrupt the government’s target of building three million houses.
The LSD map from the central government is said to conflict with the Regional Regulation on Spatial Planning Plans (RTRW) or Detailed Spatial Plans (RDTR) that have binding legal force.
This assessment is supported by academic research from Professor Winny Astuti in the field of Regional and Urban Planning at UNS. She considers the lack of synchronisation in the LSD policy to be a real obstacle in achieving the national housing programme.
“There is a conflict between the central LSD map and the regional RTRW or RDTR. This harms developers who already have land legality and have paid taxes,” said Winny.
Winny also encourages the establishment of a cross-stakeholder discussion forum to find solutions, given that this issue has the potential to cause legal disputes. Regional heads are expected to use their authority to provide policy discretion based on academic studies.
This developer consolidation involves several developer associations, namely Real Estates Indonesia (REI) Solo Raya, the Association of Settlement and People’s Housing Developers (Himperrra) Solo Raya, the All-Indonesian Housing and Settlement Developers Association (Apersi) Solo Raya, and the National Association of Simple Healthy Houses Developers (Apernas) Solo Raya.
In their recommendations, they request a comprehensive evaluation of LSD designations, particularly on land that is no longer productive or lacks irrigation access. This step is considered important to align local policies with national development targets.
Developers also urge the involvement of association representatives in the technical team of the Spatial Planning Forum, in accordance with the mandate of Law No. 26 of 2007 on Spatial Planning. This involvement is deemed important to ensure that the land data verification and validation process runs transparently and accountably.