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)