Index

 05 March 2006

 
Land snag in turnpike projects a priority
Jakarta Post

Among the eagerly awaited aspects of the new infrastructure policy package is the government's commitment to reduce the risks and costs of turnpike construction by ensuring the availability of land.

Public Works Minister Djoko Kirmanto assured the government would guarantee the acquisition of land for the projects before their bidding process, setting up a "revolving fund" for acquisition purposes.

"We will establish an institution to manage the revolving fund for every turnpike project. This will hopefully attract initial investors and encourage others as well," he said.

Investors expressed interest in turnpike projects during last year's Infrastructure Summit, but were discouraged by the problems involved in acquiring land.

Djoko acknowledged the difficulties, and noted foreign investors were participating in only four of the 12 offered projects.

"That is why we will amend the current land acquisition regulation, and enforce it better," he said.

Explaining amendments to 2005's presidential regulation on land acquisition for public use, head of the National Land Agency Djoyo Winoto said the government would require an independent land appraiser for each project to assess the value of its required land to avoid price speculation.

"The appraiser has to be certified and will be responsible in assessing the land's value to provide more certainty in its acquisition process," he said.

"We also expect the amendment to ensure the availability and the rights for both the public and investors, the lack of which recently hampered plans for infrastructure projects."

The regulation, which the government issued in May last year to help accelerate infrastructure development, drew criticism from scholars and civil rights groups. They feared possible abuse from the government's entitlement to take over a citizen's land for "public interest".

Last year, Indonesian Corruption Watch said the land acquisition process for at least 21 turnpike projects in Jakarta and West Java had caused billions of rupiah in state losses.