Critical land acquisition bill approved in Indonesia
Date
December 16, 2011
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According to Reuters and the Financial Times, Indonesia's Parliament passed today a critical piece of law for the future development of infrastructure projects in the country. The title of the bill is "land provision for the development for public interest".
As one of the points in the Reuters' article puts it:
The bill shortens to two years the process of deciding on a project location, with an extension of one year. Many delayed infrastructure projects in Indonesia are blamed on weak regulations, which were not strong enough to move people from land. It is hoped the bill will solve the issue.Although the bill ws introduced in December 2010, poiliticians have been discussing it for all this period of time and it was not apporved until they agreed on the creation of a body which will set prices on a cas-by-case basis.
Basically, land owners will get a fair price for their piece of land needed for critical infrastructure project (being this defined in the bill) and if they do not agree they can go to court to try to get a better price. Apparently, the court phase and compensation have to be decided by a court within 30 days.
But it is not definitive, according to Reuters, to become effective, the bill requires a separate presidential regulation, which government officials say should be next year. Follow us:- Linkedin group (more than 1,500 members)
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