New Provisions of Land Procurement Process under the Government Regulation No. 39 of 2023

Gain a comprehensive understanding of new provisions of land procurement for public interest development process under Government Regulation No. 39 of 2023.

1. The application for extending location determination no longer requires the conditions of (i) confirmation of space utilization activities (KKPR), (ii) land technical considerations, (iii) environmental impact analysis (Amdal), (iv) land usage outside forest area and mining area, and (v) land usage outside the peat/coastal border area.

2. Land appraisers consist of Public Appraisers and Government Appraisers.

3. The entitled parties are considered to reject the form and/or amount of compensation if they are absent at the scheduled compensation disbursement, provided that they have been properly invited for 3 times.

4. The Head of the Land Office can issue a cover letter to collect compensation that is consigned in the district court, if the Chief Executive of Land Procurement has changed.

Land procurement is an activity of providing land for public interest development, by providing fair and eligible compensation to the entitled parties (“Land Procurement”).

In the previous article, IGNOS explained the key changes of land procurement under the Job Creation Law. Meanwhile, in this article, IGNOS discusses new provisions regarding Land Procurement under the Government Regulation No. 39 of 2023 on Amendment to Government Regulation No. 19 of 2021 on Land Procurement for Public Interest Development (“GR 39/2023”), as the implementing regulation of Land Procurement Law.

1. Confirmation regarding the substance of location determination.
Under the Land Procurement Law, these five conditions are no longer required after the issuance of the location determination by the Regional Head, namely:

a. confirmation of spatial utilization activities (KKPR);
b. land technical considerations;
c. environmental impact analysis (Amdal);
d. land usage outside forest areas and mining areas; and
e. land usage outside the peat/coastal border area.

The GR 39/2023 also regulates that these conditions are also not required in applications for the extension of location determination.

2. Government Appraiser.
Previously, the party that was authorized to conduct the appraisal of the amount of compensation was only the Public Appraiser, as the land appraisers. The GR 39/2023 now distinguishes land appraisals into Public Appraisers and Government Appraisers. Public Appraisers are private individuals with a practice license from the Minister of Finance. Meanwhile, Government Appraisers are civil servants who has a duty to conduct an appraisal.

3. GR 39/2023 also regulates that if the entitled party is absent at the scheduled compensation disbursement despite being duly invited 3 times, then the entitled party is considered to reject the form and/or amount of compensation.

4. Collection of Consigned Compensation in the District Court.
The collection of consigned compensation must be supported with a cover letter from the Chief Executive of Land Procurement. In practice, it is difficult for the entitled party to fulfill this requirement if the officer who serves as the Chief Executive of Land Procurement has changed.

Under GR 39/2023, if the officer who previously served as the Chief Executive of Land Procurement has changed, then the Head of the Land Office can issue the cover letter.