Abstract
Indonesia, a country with the fourth-largest population and abundant energy resources, is yet to fully optimize its potential. Especially, the high cost of logistics, missing links in the road network, and the unstable power supply undermine opportunities to revitalize economic activities. While there is a constant need for developing infrastructures, the country has struggled with tardy or unsuccessful land acquisitions. This research investigates the landowners’ decision-making in the land lease for infrastructure. The investigation of the determinants of leasing will provide insights into land planning and the negotiation process. We find that landlords are less willing to rent out their land if they self-cultivate the plots, if plots have been obtained through inheritance or have been owned for a longer period and if the land area is small particularly in the case of non-wetlands and plots located in their villages. Currently, the compensation is calculated based on the physical value of relinquished property. For the better facilitation of land acquisition for infrastructure projects, it would be advisable to take the above factors into account, as it would encourage landowners to accept the proposed compensation.
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- 1.
Such as Singapore 5th, Malaysia 32nd, and Thailand 45th (The World Bank 2016).
- 2.
Referred English translation for Iqubal Rafani (2015) Strategic Plan of Indonesian Ministry of Agriculture: 2015–2019.
- 3.
Under the Yudoyono administration, the 8.2 percent of the national budget is assigned for infrastructure (7.63 trillion Rp) in 2009. And it increased to 8.7 percent (17.8 trillion Rp) in 2014, 14.2 percent (2.9 trillion Rp) in 2015, 15.2 percent (3.17 trillion Rp) in 2016, and 18.6 percent (38.7 trillion Rp) in 2017.
- 4.
2017 April, fourth in Hotel Kempinski, Jakarta, when the Indonesian government launched a new land acquisition scheme for national strategic projects. The other issues are protracted planning and procurement (25 percent), limited funding (17 percent), and licensing (12 percent).
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The presidential power of the expropriation of people’s land rights that his 2005 decree and Law 20/1961 permitted as a democratically elected president (Davidson 2016).
- 6.
The government had the legal domain over the nullification of land rights, local government officials were in charge of enforcing the state’s policy on the ground under the 1999’s decentralization law.
- 7.
However, the agency was not clearly named as the National Land Agency (BPN).
- 8.
Presidential decree: No. 71 (2012), No. 40 (2014), No. 99 (2014), and No. 30 (2015).
- 9.
“Peraturan Kepala Badan Pertanahan Nasional Republik Indonesia Nomor 5 Tahun 2012 Tentang Petunjuk Teknis Pelaksanaan Tanah”, October 2012 National (Decree of the head of the National Land Agency of the Republic of Indonesia, number 5, year 2012, Technical Guidelines for Implementation of Land Procurement).
- 10.
For example, on acceleration of priority infrastructure provision (No. 75, 2014), on public private partnership projects (No. 38, 2015).
- 11.
“Indonesia Valuation Standard” (Standar Penilaian Indonesia/ SPI 306) Penilaian Terhadap Pengadaan Tanah Bagi Pembangunan Untuk Kepentingan Umum.
- 12.
Wetlands are usually located lower than 200 meters below sea level, mostly in coastal areas, are downstream, and are passed by at least one river. The farm land in wetland areas is usually cultivated with paddy. Non-wetland areas are present more than 200 meters above sea level, are mountainous, and hilly areas. They are located upstream or near waterfalls. Farms in non-wetland areas are in the form of plantations.
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Yoshino, N., Parinduri, R.A., Oishi, Y. (2019). Attitudes Toward Land Acquisition in Indonesia. In: Yoshino, N., Paul, S. (eds) Land Acquisition in Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-6455-6_5
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