DPR: Spatial Planning and Land Issues Frequently Reported by Industrial Estates
The House of Representatives (DPR) Commission VII has stated that spatial planning and land issues are major grievances for industrial estate managers, as they lead to difficulties in renewing Building Use Rights Certificates (SHGB).
“We request the Indonesian Industrial Estate Association and the Ministry of Industry to take concrete steps so that the problems faced by industrial estate managers can be resolved immediately,” said the Deputy Chair of Commission VII, Evita Nursanty, during a visit to the Mitra Industrial Estate in Karawang Regency, West Java, on Monday.
She noted that during several visits to various industrial estates, the Working Committee for the Draft Law on Industrial Estates of Commission VII DPR RI has identified numerous issues. However, the majority of these problems pertain to spatial planning and land matters. For instance, at the Mitra Karawang Industrial Estate, there is a dispute involving a 2-hectare discrepancy regarding land and spatial planning.
Such conditions naturally create discomfort for investors, who require legal certainty. Regarding these spatial and land issues, the management of the Mitra Karawang Industrial Estate mentioned that a portion of their land, approximately 30 hectares, is still classified as permanent production forest area based on the 2011-2031 Karawang Regional Spatial Plan (RTRW) Regulation.
However, according to the latest Forestry Decree, the location specified in the Karawang RTRW Regulation is no longer classified as permanent production forest area. According to the estate managers, this discrepancy prevents companies from renewing their Building Use Rights Certificates (SHGB).
In relation to this, the National Land Agency (BPN) stated that SHGB can only be extended if the Regional Spatial Plan (RTRW) is updated. However, it remains uncertain when such a revision will take place.
Furthermore, based on the latest Forestry Decree, there are indications of overlapping land claims involving approximately 2 hectares within the Mitra Karawang Industrial Estate. This situation is feared to become a significant problem when the current SHGB, which expires in 2037, comes up for renewal.
Evita explained that her visit to the industrial estate was intended to “gather problems” so that the Draft Law on Industrial Estates, currently being discussed by Commission VII, can provide genuine benefits. “We have come to absorb aspirations. We are here to identify the issues related to the Industrial Estate Bill. Therefore, please convey all the problems regarding the management of these industrial estates,” she said.