On 27 May 2019, the Republic of Indonesia Government enacted the Minister of Agrarian Affairs and Spatial Planning/National Land Agency Regulation Number 12 year 2019 on Land Consolidation (“Permen Agraria 12/2019”).
The Permen Agraria 12/2019 is intended to (i) realize the optimal use and utilization of land, (ii) increase the efficiency and productivity of land and space use, (iii) improve environmental quality; and (iv) provide legal certainty of land and space rights above and/or below the land. Furthermore, the Permen Agraria 12/2019 aims that (i) land tenure, ownership, use and utilization arrangement through Land Consolidation may create a good living environment according to the spatial plan; and (ii) the availability of land for public purposes involving the active participation of the people.
Permen Agraria 12/2019 has revoked Regulation of the Head of the National Land Agency of the Republic of Indonesia Number 4 of 1991 on Land Consolidation. The Land Consolidation activities took place before the enactment of Permen Agraria 12/2019, will be carried out based on the Regulation of the Head of the National Land Agency of the Republic of Indonesia Number 4 of 1991 on Land Consolidation.
Land Consolidation is a policy of restructuring the control, ownership, use, and utilization of land and space in accordance with spatial plans and an effort to procure land for the public interest in order to improve the environmental quality and preserve natural resources by involving the people’s active participation (“Land Consolidation”).
Scope of Land Consolidation
The implementation of land consolidation includes:
- Land Consolidation planning;
- implementation of Land Consolidation;
- development of the results of the Land Consolidation; and
- supervision of Land Consolidation.
Land Consolidation is carried out in a participatory and voluntary manner/based on the agreement between the Land Consolidation Participants. Land Consolidation Participants are rights holders or tenants of land at the location of the Land Consolidation activities who have stated their agreement to participate in the Land Consolidation activities. Implementation of Land Consolidation may become mandatory in terms of structuring post-disaster areas, conflicts, slums, and strategic programs.
Classification of Land Consolidation
Based on the function and designation of the area, Land Consolidation can be divided into:
- Consolidation of Agricultural Land, which means Land Consolidation is carried out on agricultural lands in rural areas; and
- Non-Agricultural Land Consolidation, which means Land Consolidation is carried out on non-agricultural land, including the procurement of land for development for the public interest in urban and semi-urban areas.
Based on the dimensions of land use, Land Consolidation can be divided into:
- Horizontal Land Consolidation, which means Land Consolidation is carried out for the development of horizontally oriented areas and buildings; and
- Vertical Land Consolidation, which means Land Consolidation is carried out for the development of vertically oriented areas and buildings.
Based on the scale of land, land consolidation can be divided into:
- Small scale Land Consolidation; and
- Large-scale and/or strategic Land Consolidation.
Based on its needs and implementation, Land Consolidation can be divided into:
- Simple Land Consolidation; and
- Complete Land Consolidation.
Land Consolidation Planning
Land Consolidation planning covers the activity of preparing a Land Consolidation location based on regional, social, economic, cultural and environmental studies and analysis.
Land Consolidation Planning is carried out by:
- Ministry of Agrarian Affairs and Spatial Planning/National Land Agency; and
- other stakeholders, which include:
- other ministries/institutions;
- Regional Government;
- cooperatives, state-owned business entity, regional-owned business entity, desa-owned business entity, private legal entity;
- academics/practitioners; and/or
- the people.
Land Consolidation Planning shall pay attention to:
- Regional Spatial Plans, Spatial Detail Plans, or other Detailed Plans governed by prevailing laws and regulations;
- carrying capacity and support the environment as well as protection of natural resources, biodiversity, landscapes (heirlooms/heritage) and cultural sites;
- proposal of the people at the location of Land Consolidation;
- the necessity for infrastructure, facilities, and utilities;
- people’s empowerment programs; and
- regional development policy.
Implementation of Land Consolidation
The Land Consolidation is carried out by the Land Consolidation planning/implementing team, covering the following activities:
- collection of physical data, juridical data, and valuation of Land Consolidation objects;
- preparation of the design and action plan for Land Consolidation;
- waiver of land rights and affirmation of the Land Consolidation object;
- application of the design of Land Consolidation (staking out); and
- issuance of certificates of land rights and handover of the results of Land Consolidation.
Development of Land Consolidation Results
The Development of the Land Consolidation results is carried out by the stakeholders listed in the Land Consolidation action plan.
The stages of development of the results of the Land Consolidation include:
- preparation of construction implementation;
- construction of infrastructure, facilities, and utilities;
- issuance of land rights certificates and asset handover for Vertical Land Consolidation;
- establishment of the association of owners and residents as well as social empowerment; and
- management of assets resulted in Land Consolidation.
The implementation of the Land Consolidation development begins with the preparatory stage intended to initiate physical realization and follow up on the design and action plan of the Land Consolidation. This can be performed after applying the design (staking out).
Preparation for implementation of development, includes:
- administration of building and building area permit in accordance with the prevailing laws and regulations;
- the appointment of development contractors by the participant association;
- preparation of investment cooperation documents between the association of Land Consolidation Participants and contractors;
- carrying out temporary relocation of Land Consolidation Participants; and
- preparation and land clearing of the area of Land Consolidation.
In the case of Vertical Land Consolidation, validation of the statement and proportional comparative value of the apartment units will also be conducted.
Rights and Obligations of Participants in Land Consolidation
Land Consolidation Participants are entitled to:
- obtain information and socialization regarding the implementation of Land Consolidation transparently;
- obtain land and/or building as a result of the arrangement in accordance with the agreement, with a value that is, at least, the same as the value before the Land Consolidation;
- obtain a certificate as proof of land rights as a result of the Land Consolidation; and
- utilize the infrastructure, facilities, and utilities at the location of Land Consolidation.
Land Consolidation Participants are obliged to:
- declare in the form of written agreement to participate in the Land Consolidation activities;
- accept the results of the agreed Land Consolidation design;
- waive the rights/control/cultivated land to the state for further arrangement through the Land Consolidation, including the surrender of part of the land as TP in accordance with the agreement; and
- become a member of the association of Land Consolidation Participants.
Supervision of Land Consolidation
Land Consolidation Supervision is carried out by the Land Consolidation coordination team, covering the following activities:
- Monitoring the suitability of the stages and documents of the Land Consolidation.
Monitoring the suitability of the stages and completeness of the Land Consolidation document is intended to ensure the consistency and quality of the implementation of the Land Consolidation at the planning and implementation stage of the Land Consolidation.
- land and/or Vertical Land Consolidation;
- technical aspects of the implementation of Land Consolidation; and
- the quality and performance aspects of the implementation of Land Consolidation.
- Monitoring the suitability of the stages and documents of the Land Consolidation. Monitoring the suitability of the stages and completeness of the Land Consolidation document is intended to ensure the consistency and quality of the implementation of the Land Consolidation at the planning and implementation stage of the Land Consolidation.
- the preparatory stage for the Land Consolidation construction;
- the development stage of the location of Land Consolidation; and
- the management stage post-construction of Land Consolidation;
- Monitoring and evaluation of social, economic and environmental impacts;
The monitoring and evaluation of social, economic and environmental impacts are intended to ensure the effectiveness of the implementation of the Land Consolidation on increasing the added value of the area.
Impact monitoring and evaluation, including:
- changes in socio-cultural behavior;
- economic improvement; and
- environment improvement.
- Periodic evaluation of area and development performance ievery 5 (five) years;
Evaluation of the area's performance and development every 5 (five) years is intended to find out the development and physical changes in the area as well as the sustainability of the area's functions in accordance with the objectives of the implementation of the Land Consolidation.
- Planning and rebuilding (Long Term).
Planning and rebuilding the area (long term) is intended to anticipate the need for rejuvenation and revitalization of the area resulting from the Land Consolidation.
Supervision of Land Consolidation is carried out throughout the whole process of Land Consolidation, from the planning, implementation, and construction of Land Consolidation including Vertical Land Consolidation.
Financing and Collaboration of The Land Consolidation
Source found for the implementation of Land Consolidation comes from:
- sociepeople’s participation;
- State Budget (APBN);
- Regional Revenue and Expenditure Budget (APBD) and / or;
- other legitimate sources of financing.
The fund that comes from people’s participation can be in the form of land for development and other contributions agreed by the participants' association.
The financing of the implementation of the Land Consolidation is intended for:
- planning costs;
- land administration costs through the PNBP mechanism;
- compensation and costs for damages;
- temporary relocation costs and lost income allowances;
- administration costs for obtaining permit and license;
- physical construction costs of buildings, infrastructure, facilities, and utilities;
- building maintenance costs;
- building renovation costs; and
- other costs.
Land Consolidation can be performed through forms of cooperation between the Government, Business Entities, Academics, Community Group Practitioners, and other related parties.
Shalomo Mashury Tampubolon