Land conflicts hindering industrial estate projects

Land conflicts hindering industrial estate projects

JAKARTA (JP): The government's ambitious plan to develop
economic growth centers through the establishment of industrial
estates has been hampered by the old problem of land
appropriation.

Soni Harsono, the Minister of Agrarian Affairs and head of the
National Land Agency, acknowledged that the problem has been
partly aggravated by dishonest land officials and speculators who
wrested control of the plots before they were appropriated to
cash in on huge profits.

Speaking to executives of industrial estate developers on
Thursday, Soni promised that he would take stern action against
any of his staff found to be involved in dishonest dealings. He
added that he would also punish any land speculators that tried
to influence government officials.

Soni urged the public to report any irregularities in land
appropriation and, if possible, furnish evidence to support their
allegations.

Soni said the government has already approved the
establishment of 124 industrial estates covering a total area of
54,650 hectares of land. But more than 18,800 hectares of the
designated plots of land have not yet been bought by the
developers.

He said that some land officers have vexed developers through
unnecessary, arduous procedures for land acquirement -- forcing
them to resort to the services of brokers. However, he added that
brokers made the problem much worse.

"It's too bad that people are afraid (of reporting the
irregularities) because they feel intimidated," he told the
luncheon meeting land organized by the Association of Industrial
Estates.

According to Soni, the House of Representatives (DPR) recently
alleged that there was a widespread practice of accepting bribes
in the land agency. He said that he could not take any action,
however, because there was no evidence about the misdeeds.

The minister said he wrote a letter to the House asking for
details, but they did not respond.

Developers taking part in the seminar complained chiefly about
the arduous procedures for obtaining permits for land
acquirement, which had opened a door for the operation of land
brokers.

"While we were processing the permits for land acquirement,
land brokers bought the land from local people, and then sold it
to us at much higher prices," Elias L. Tobing, president of Pasar
Kemis Industrial Estate in Tangerang, said.

"I wonder how the brokers knew which land to buy. Could they
have cooperated with land officers?" he asked rhetorically.

However, Soni also had a bone to pick with the developers.

He noted that many of them had not begun construction even
after they had acquired the land.

So far, only 17 industrial estates covering 6,325 hectares of
land in seven provinces have been fully developed. Another 11
estates covering 4,803 hectares of land are being developed.

The development of the other industrial estates in 23,677
hectares of land have not started even though the developers have
bought the land, Harsono said.

He said the government would not extend the operation licenses
of developers who had abandoned the land they acquired.

Compensation

Bambang W. Soeharto, a member of the National Commission on
Human Rights, said later in the seminar that local people often
suffered because of the inappropriate compensation, which was
decided by the government and the developers. He called on the
government and developers to involve the people in the discussion
about the compensation.

The National Commission on Human Rights headquarters in
Jakarta has been frequented by many villagers who were displaced
by the development of industrial estates and other projects. Most
of them complained about the low compensation rates which were
often set unilaterally at levels far below the market prices
without their prior consultation.

Bambang suggested that, instead of giving the people financial
compensation, the developers could offer them shares of the
industries. The developers should also give preference to hiring
the displace villagers to work in the industrial estates, so that
the development could really be beneficial for the local people.

In order to prevent any illegal cuts in the compensation by
unauthorized officers, developers could send the payment through
a bank, Bambang said. (sim)