Structure, Function and Duty of Land Bank Agency

1. Land Bank is an Indonesian legal entity that formed under the Job Creation Law, which has special authority to guarantee the availability of land for equitable economy.
2. The structure of Land Bank consists of Committee, Supervisory Board, and Implementing Body.
3. Land Bank functions to carry out the planning, acquisition, procurement, management, utilization and land distribution.
4. Acquisition of land by the Land Bank originates from (i) land determined by the government, and (ii) land from other parties.
5. Land managed by the Land Bank is granted with management rights.

Under Law No. 6 of 2023 on the Determination of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (“Job Creation Law”), the central government is required to establish a Land Bank Agency (“Land Bank”).

The Land Bank is a special agency with the authority to manage land, in which its assets are separate from state assets, where this special agency is formed to 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.

The Land Bank are regulated under the following regulations:

1. Article 125 to Article 135 of the Job Creation Law;
2. Government Regulation No. 64 of 2021 on Land Bank Agency (“GR Land Bank”); and
3. President Regulation No. 113 of 2021 on the Structure and Administration of the Land Bank Agency (“PR Land Bank”).

Land Bank is an Indonesian legal entity that is responsible to the President through a committee and has special authority to guarantee the availability of land for a just economy. Therefore, the Land Bank has the following organizational structure:

1. Committee: Responsible to determine the strategic policy of the Land Bank, consisting of a chairman and members. In carrying out its duties, the Committee is supported by the Committee Secretariat, which provides technical, administrative and analytical support to the Committee.
2. Supervisory Board: Responsible to supervise and provide advice to the Implementing Body in carrying out the activities of the Land Bank.
   
   The Supervisory Board consists of 7 members who are elected by the President based on the recommendation of the Committee, one of whom is appointed as a chairman and also a member. The Supervisory Board comprises of 4 members from the professional backgrounds, and 3 members from the government sector.
   
   The members of Supervisory Board serve for 5 years and can be reappointed for 1 additional term.
   
   
3. Implementing Body: Vested with full authority and responsibility for the implementation of the Land Bank functions.
   
   The Implementing Body consists of a Head and Deputy, supported by the Secretary of the Implementing Body and the Internal Supervisory Unit. The Head and Deputy of the Implementing Body are appointed for a term of 5 years and can be reappointed for 1 additional term.
   
   In policy determination, the Implementing Body has two decision-making mechanisms, namely implementing body meetings, and circular decisions.

The Land Bank functions to carry out the planning, acquisition, procurement, management, utilization and land distribution.

In addition, the Land Bank has tasks to conduct:

1. long-term, medium-term, and annual activity planning;
2. land acquisition;
3. land acquisition for development for public interest or direct land acquisition;
4. land management;
5. utilization of land; and
6. land distribution.

Acquisition of land by the Land Bank originates from:

1. land determined by the government, such as land of ex-rights, abandoned areas and lands, forest area release land, emerging land, reclamation land, ex-mining land, land on small islands, land affected by spatial planning change policies, and unoccupied land; and
2. land from other parties originating from the government, state-owned company, and regionally-owned company, which is carried out through purchases, grants, exchanges, relinquishment of rights, and other forms.

Further, the land managed by the Land Bank is granted with management rights.