Indonesia’s land acquisition law expected to take effect this month

05-May-2012 Intellasia | Jakarta Globe | 7:05 AM Print This Post

A new regulation that will make it easier for the Indonesian government to acquire land for infrastructure projects is expected to be issued by President Susilo Bambang Yudhoyono by the end of the month.

The law will guarantee that land set aside for infrastructure projects will remain available for acquisition by developers. It will also aim to rein-in surges in land prices that often crippled the country’s larger developments and to restrict the sale of needed land to third parties.

“The presidential regulation draft is complete. We’ll finalise it next week, to make sure it is issued in May,” the coordinating minister for the economy, Hatta Rajasa, said after a Thursday Cabinet meeting on economic issues at the Presidential Palace in Jakarta.

Finance minister Agus Martowardjo estimated that the land acquisition law will support Indonesia’s projected 7 to 7.7 percent growth in 2014.

The law was endorsed by House lawmakers in December. Lawmakers explained that controlling Indonesia’s frequent land disputes was vital to the country’s economic development. The government plans to spend $7 billion on infrastructure projects, including some 20,000 kilometers of new roads and 15,000 megawatts of energy produced by new power plants.

http://www.thejakartaglobe.com/news/indonesias-land-acquisition-law-expected-to-take-effect-this-month/515815

 


Category: Indonesia

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