Land Management and Utilization by the Land Bank Agency

Gain an understanding of the land management and utilization authority by Land Bank Agency as a legal entity which has specific duties to carry out land management.

1. Land management by the Land Bank includes activity of land development, land maintenance and security, and land control.
2. Utilization of land by the Land Bank is carried out through utilization cooperation with other parties, with schemes among others (i) sale and purchase, (ii) lease, (iii) business cooperation, (iv) grants, and (v) exchange.
3. Head of the Implementing Agency of the Land Bank will set tariff for land utilization for the implementation of utilization cooperation, which include (i) the amount of the tariff, (ii) the period of time, and (iii) competitive payment method.

As a special agency which has authority to manage land and ensure the availability of land for the purpose of public interests, social interests, national development interests, economic equity, as well as for land consolidation and agrarian reform, then the Land Bank is given the authority to manage and utilize land.

The authority to manage and use land by the Land Bank is regulated under the Government Regulation No. 64 of 2021 on Land Bank Agency (“GR Land Bank”).

Acquisition of land by the Land Bank originates from land determined by the government, and land from other parties. Then, the land managed by the Land Bank is granted with management rights.

In carrying out land management, the Land Bank has the authority to carry out:

1. Land Development, namely by preparing the land for:

1. housing and residential areas;
2. urban rejuvenation;
3. integrated area development;
4. land consolidation;
5. infrastructure development;
6. construction of facilities and infrastructure;
7. soil maturation; and
8. national strategic project.

The results of land development are in the form of construction of facilities and infrastructure in industrial areas, tourism areas, agriculture, plantations, special economic zones, and other economic zones.

The development is carried out in accordance with the local spatial plan, the implementation of which can be carried out in cooperation with the central government, local government, and other parties.

2. Land Maintenance and Security, namely in the form of activities to maintain and secure land, which consists of legal aspects and physical aspects.

The legal aspect includes the activities of the Land Bank to actively defend land rights, both inside and outside the court. Meanwhile, the physical aspect includes the activities of the Land Bank to secure and maintain the physical land.

3. Land Control, namely in the form of activities to control land tenure, utilization, and value.

The Land Bank has the authority to make use of land with other parties, through the signing of a utilization cooperation, with the scheme:

1. sale and purchase;
2. lease;
3. business cooperation;
4. grant;
5. exchange; and
6. other agreed forms.

The Land Bank will provide assistance in the sector of land and spatial planning as a form of facilitating business licensing.

In addition, the Head of the Implementing Agency of the Land Bank will set tariff for land utilization for the implementation of utilization cooperation, which include (i) the amount of the tariff, (ii) the period of time, and (iii) competitive payment method.