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Factbox: Indonesia’s New Land Law
December 16, 2011

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Key points of Indonesia's new Land Law:

The House of Representatives (DPR) debated the bill, titled “land provision for the development for public interest,” for a year.

Lawmakers discussed questions including regulatory certainty needed by businesses, government responsibility to fix infrastructure and the need for fair compensation for those whose land is acquired.  

The bill covers infrastructure projects such as roads, dams, tunnels, railways, ports and airports, oil, gas and geothermal facilities, power plants and their distribution networks, hospitals and telecom networks.

It is limited to government projects but allows government to partner with state-owned firms and the private sector.  

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.  

It gives a clear timeframe for land acquisition that includes decisions over a location, an appeals phase and compensation now to be decided by a court within 30 days.

It will also shorten the time it takes for infrastructure projects to acquire land.  

Compensation can come in the form of cash, land swaps, share ownership, aided relocation and/or other forms agreed by both parties.  

The bill gives local governments authority to decide on the location of a project.

It equips the National Land Agency, or BPN, to oversee the acquisition process.  

To become effective, the bill requires a separate presidential regulation, which government officials say should be next year.

Reuters