Irony in Indonesia's Rule of Law: Many State Lands Controlled by Community Organisations

The Minister for Housing and Settlement Areas (PKP), Maruarar Sirait, has admitted she cannot comprehend how numerous state lands and those belonging to state-owned enterprises (SOEs) have been controlled by community organisations (ormas) for decades. She cited examples in Jakarta where vast SOE lands are occupied by ormas, such as areas around railway tracks and stations that are legally owned by PT Kereta Api Indonesia (Persero) or KAI. Despite their recorded ownership by the state company, the facts on the ground show that these lands are often managed and controlled by certain ormas. “There are so many state lands controlled by other parties,” said Ara, the familiar name for Maruarar Sirait, in Jakarta, as quoted on Tuesday (7/4/2026). Ara explained that these state or SOE asset lands should be used optimally for the welfare of the people, including for housing purposes. In fact, these numerous state property assets are located in strategic areas. She exemplified that KAI has vast lands near Tanah Abang Station, but they are managed by ormas. “Yes, in many places. In Tanah Abang, the state land is very strategic, in Bandung very strategic, in Medan very strategic,” she revealed. After taking them back from the ormas, Ara continued, her side plans to transform these lands into sites for vertical housing, especially for low-income communities (MBR). Previously, the President Director of PT Kereta Api Indonesia (Persero), Boby Rasyidin, recently complained about the many company lands controlled by several ormas. When these SOE lands are to be used, the company must deal with the ormas. The company seems unable to do much. “The problem is that these ormas occupy them illegally at present. They are already (legally owned by KAI),” said Boby.