"If the Land Bank operates effectively, then in the next one or two years, there will be many building use rights (HGB), cultivation rights (HGU), and abandoned land that can be used as a land bank for public housing," Amin noted in his opening remarks during the 2020 National Working Meeting of the Indonesian Association of Real Estate Developers (REI) held virtually here on Thursday.
Land Bank is one of the eight aspects related to property regulated in Law Number 11 of 2020 on Job Creation apart from flats, buildings, housing, and residential areas, the agency for accelerating the implementation of housing, abandoned land and areas, as well as spatial planning and taxation.
"Land Bank allows the Government to optimize abandoned lands and unmanned lands to be accommodated and redistributed back to the community," he remarked.
Meanwhile, the REI assessed that the formation of a Land Bank will later guarantee the availability of land for residential development, especially in urban areas at a lower price.
The REI is optimistic that the derivative regulations of the Law on Job Creation related to Land Bank would be drafted and passed in order to encourage growth of the property sector in Indonesia.
"Through the Job Creation Law, a breakthrough is expected for the ease of licensing, including spatial planning, so that agrarian reform can be conducted properly,” REI Chairman Paulus Totok Lusida stated.
The provisions related to Land Bank are regulated in article 125 to article 135 in the Job Creation Law. The government forms a Land Bank Agency comprising a committee, supervisory board, and executor.
The law explains that the Land Bank Agency guarantees the availability of land in the framework of a just economy for public interest, social interest, national development interest, economic equality, land consolidation, and agrarian reform. Related news: Land acquisition problems hampering infrastructure credit growth
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Translator: Fransiska N, Fardah
Editor: Suharto
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