Overcoming the Constraints of Infrastructure Development, Government Will Form the Land Bank

Overcoming the Constraints of Infrastructure Development, Government Will Form the Land Bank

The Government recognizes, until now, the problem of land acquisition remains a main obstacle in the development of infrastructure in Indonesia. To overcome this problem, the government discourse for the establishment of the land bank in Indonesia.

Minister of Finance, Bambang P.S. Brodjonegoro said, the establishment of land bank is needs to be done immediately to improve the government’s sovereignty and ensure the development of infrastructure projects can be run properly.

With the land bank, Bambang said, later, the institution will make the purchase of land before infrastructure development projects begins.

Public Service Agency

Minister of Finance Bambang Brodjonegoro conveyed, that at this time, the government continued to conduct discussions with the House of Representatives (DPR) for the establishment of the land bank in the form of Public Service Agency (BLU).

He said the idea from BLU (land bank) this is when it gets an indication from these regions (for infrastructure development), so the BLU will make the purchase (land) first, then when a project will be realized, so the parties will run the project (ministry/investor), can simply buy from BLU.

Minister of Finance Bambang Brodjonegoro conveyed, that at this time, the government continued to conduct discussions with the House of Representatives (DPR) for the establishment of land banks in the form of Public Service Agency (BLU).

He said, the idea from BLU (land bank) This is when it gets an indication from these regions (for infrastructure development), so that the BLU will make the purchase (land) first, then when a project will be realized, so the parties will run the project (ministry/investor), can simply buy from BLU.

According to Minister of Finance, if the land acquisition will be done after the project is launched, it is feared will hamper the implementation of the project. “(If) the launching of the project, then the procurement of land, I’m sure this project will not happen, because I believe the price of this land when leak that there is development of a project, then the land price will go up tremendous, so that eventually even complecate on land acquisition itself”, he explained

Minister of Finance pointed out, the construction of the Trans Java toll road, for example, is still hang fire because of constrained land acquisition problems. “We already know exactly how many projects delayed only because of land acquisition problems, including the Trans Java, for example, in the northern part of Central Java, there are some sections that have not been released,” he said.

This, Minister of Finance continued, resulting in the construction of the Trans Java toll road would be difficult to be realized in the near term.  (Humas Kemenkeu/ES)