ArticlesLandslider

Calculation and Compensation Implementation Process If Affected by Development of New Electricity Network

By July 30, 2018 No Comments

Background

Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 27 of 2018 on Compensation for Land, Buildings, and/or Plants Under the Free Space of Power Transmission Network.

To meet the need for more comprehensive compensation arrangements for land, buildings and plants, it is necessary to reorganize compensation provisions on land, buildings, and/or plants under the free space as stipulated in Regulation of the Minister of Energy and Mineral Resources No. 38 of 2013 on Compensation for Land, Buildings, and/or Plants Under the Free Space of High Voltage Air Channels and Extra High Voltage Air Channels.

Compensation

Compensation is the granting of money to the holder of the land right along with the building, plant and/or other objects contained on the land because the land is used indirectly for the development of electricity without the release or delivery of land rights.

Electricity business license holder is obliged to compensate for land, building, and plant to the holder of land, building, and plant which its economic value is reduced due to being crossed by Power Transmission Network.

Compensation applies to activities:

  • construction of new Power Transmission Network
  • the construction work of Electric Power Transmission Network which causes replacement, an addition of tower/pole, and/or conductor

  • construction of an Electric Power Transmission Network which causes the addition of the width of free space and the horizontal minimum clearance corridor from the vertical axis of the tower/pole.

Compensation calculation formula

  • formula calculation Compensation for ground: Compensation = 15% x Lt x NP

Information:

Lt: Land area under Free Space

NP: The market value of the land of the Appraisal Institute

  • compensation formula for building: Compensation = 15% x Lb x NPb

Information:

Lb Building area under NPb Free Space Market value of building from Appraisal Institute

  • Compensation Calculation Form For Plants: Compensation = Npt

Description: Npt Market Value of Crop From Appraisal Institute

Implementation of Compensation Activities

  1. Preparing for Compensation

The holder of a power supply business license prior to granting Compensation shall:

  • socialize the development plan of Power Transmission Network to society which will be crossed by Power Transmission Network

  • collect initial data of the holder of land, building and/or plant rights under the Free Space of Power Transmission Network

  • prepare the inventory and identification of ownership, use and, utilization of land, buildings, and/or Plants;

  • document the inventory and identification results

  • verify the documents of inventory and identification;

  • announce the verification result in the village or village office or local sub-district no later than 14 (fourteen) working days.

In the event that the party entitled to the land, building and/or plant does not receive the inventory and identification result, the party entitled to the land, building, and/or plant may file an objection to the holder of the electricity supply permit through the local urban village office or sub-district long 14 (fourteen) working days since it was announced.

On the basis of an objection, the holder of the electricity supply business license shall follow up by re-verifying the ownership, use and utilization of land, buildings and/or crops no later than 14 (fourteen) working days after the objection is received. Verification results are announced at the local village office. The results of inventory, identification, and/or verification shall be the basis for the nominative list of prospective recipients of Compensation.

  1. Appointment of Appraisal Institute

Holders of power supply business licenses undertake the provision of an Appraisal Institute to conduct an assessment of the magnitude of the Compensation. The Assessment Institute shall have a classification of the field of assessment services related to the field of land, building, and cultivation services Plants licensed by the minister. Electricity business license holder submits the proposal of appointment of Appraiser Institution candidate to Director General or governor in accordance with their authority.

Proposed appointment of Appraiser Institution candidates is supported with the following documents:

  • business license and/or opening license of branch office

  • Appraisal Institution

  • List of names of appraisers who have obtained the appraisal permit

  • license from the minister

  • list of related assessment services.

The Director-General or the Governor in accordance with his/her authority will determine the appointment or refusal of the Appraisal Institution no later than 14 (fourteen) working days since the application is received completely and correctly.

In the event that the appointment of the Appraiser Institution is rejected, the Director-General or the Governor shall, in accordance with his/her authority, notify the applicant in writing with the reasons for his / her rejection.

  1. Determination of the Amount of Compensation

The Appraisal Agency determines the amount of Compensation based on the compensation calculation formula. The result of the determination of the amount of Compensation shall be final and shall be the basis for the holder of the electricity supply business license in the granting of Compensation.

  1. Payment of Compensation

Payment of Compensation shall be granted by the holder of the electricity supply license to the holder of land, building and/or plant rights prior to carrying out the withdrawal of the Power Transmission Network. Payment of Compensation shall be witnessed by at least 2 (two) witnesses from the leadership element of the urban village accompanied by the receipt of payment of compensation.

In the event that a Compensation Candidate is not found or refuses Compensation, the holder of a Power Supply Business License carries out the payment of Compensation to the local District Court in accordance with the provisions of the law. After the deposit of Compensation payments, the holder of a power supply business permit may carry out activities.


Michelle Alexander