Indef Criticizes Land Banks: Will Make It Easier For The Private To Get Cheap Land For Investment

Illustration. (Photo: Setkab)

JAKARTA - Institute for Development of Economics and Finance (Indef) researcher Abra Talattov criticized the government's decision to form the Ease of Government Project cluster in the Omnibus Law of the Employment Creation Law (UU). This is because in this cluster the government opens space for the private sector to acquire land at low prices.

Abra Talattov said, chapter VIII of the Job Creation Law on land acquisition, in article 125 paragraph 1 states that the central government establishes a Land Bank agency.

Then, in Article 125 paragraph 4, it is stated that the function of the Land Bank is to carry out the planning, acquisition, procurement, management, utilization and distribution of land.

"We need to guard against this with the Land Bank. Because this is our concern, that the existence of a Land Bank can be a shortcut for private companies or oligarchs to be able to get land for their investment cheaply, even if it is free," he said, in a virtual discussion. , Monday, November 2.

Moreover, Abra said, in article 173 paragraph 2 of the Work Creation Law for the Ease of National Strategic Projects (PSN) cluster related to land acquisition for national strategic projects, it could be carried out by business entities.

"What business entity is meant in this Job Creation Law? Because if the Ciptaker Law is clarified, it is only BUMN and BUMD. But in the government's presentation, this business entity is still ambiguous whether it is also a non-BUMN business entity," he said.

According to Abra, the substance of the government project convenience cluster in the Job Creation Law includes the government that will provide land in the form of land or forest areas needed in project implementation. Provision of land takes into account the state's financial capacity and fiscal sustainability, land acquisition can be carried out by the private sector if there is no government budget available.

Furthermore, Abra said, because the mechanism was when there was a strategic project it was then facilitated by the government through the Land Bank and the land acquisition was borne by the government. Meanwhile, the land lease is applied as low as possible for the benefit of the corporation for investment in land parcels.

Moreover, the Job Creation Law also states that this land bank is a non-profit which assumes that it provides land rental services to the private sector. So that in the sense that the land bank does not profit from the projects that are built.

"We have to monitor the implementation of this land bank establishment together," he explained.