JAKARTA (TheInsiderStories) - President Joko Widodo has signed a Presidential Decree (Decree) No. 102 of 2016 on Financing Land Procurement for Public Interest in the Context of the Implementation of the National Strategic Projects.
According to the Cabinet Secretary statement released on Wednesday, the new decree has goal to accelerated completion of the National Strategic Project in order to meet basic needs and improve the welfare of the community, need to be accelerated land acquisition for the construction of the public interest, and in order to speed up land acquisition referred performed provision of funding by the Government.
The regulation said, funding for the procurement of land for public interest can be done through the financing of investment by the government of the mechanism compensation payments directly to parties entitled by the Minister and/or enterprises use of the funds in advance.
The implementation of the funding referred to by the Minister (who held government affairs in the field of state finances). While the implementation of the Funding functionally implemented by the working unit in the Ministry of Finance is implementing the tasks and functions of the state asset management by implementing public financial management badanlayanan.
In This regulation is mentioned, the Minister responsible formally for planning budgeting and disbursement of funds Indemnity to Parties Entitled or business entities in the implementation of land acquisition using funds Enterprises advance, upon proposal of the Minister/Head or the management of state own enterprises (SOEs).
Meanwhile, Minister and SOE leaders responsible for planning and filing requirements Compensation fund payments. Agricultural and Spatial Planning Minister responsible for the implementation of the Land Acquisition in accordance with the provisions of the legislation in the field of Land Procurement for the construction of the public interest.
“Implementation of the Land Acquisition Funding for the implementation of the National Strategic Project organized through the following stages planning and budgeting also supervision, Compensation, and pensertipikatan, “reads Article 7 of this regulation.
This regulation also emphasized that the Land Acquisition Funding for the implementation of the National Strategic Projects can use the funds that enterprises get the power under the agreement to act on behalf of the ministries or agencies in the provision of infrastructure in the public interest in accordance with laws and regulations.
“Enterprises is an entity referred to in the form of state-owned enterprises or private entity in the form of a limited liability company,” reads Article 19 paragraph (2) of the regulation.
Funding for Land Acquisition as intended, according to this regulation, are reimbursed by the Minister through the State Budget after separation of the object rights for land acquisition on the field or group of fields is finished.
Furthermore, the Chief Executive of the Land Acquisition submit the results of the Land Acquisition referred to the Minister or Chairman or head of state enterprises with the data of the Land Acquisition, to be submitted to the Minister through a working unit in the Ministry of Finance is carrying out the duties and functions of management of state assets by implementing financial management of public service agencies , accompanied by the Land procurement data, at least seven working days after the submission by the Chief Executive of the Land Acquisition.
“Based on the submission referred, the Minister filed pensertipikatan for and on behalf of the Government of the Republic of Indonesia c.q. Ministry of Finance, “reads Article 22 paragraph (4) of this regulation.
Article 23 This regulation states, the Government can provide insurance against risks that may arise due to delay budgeting for land acquisition carried out by the Ministry / Agency as Responsible Project Cooperation with Enterprises, which the Government refers Enterprises underwriting infrastructure to carry out the guarantee in accordance with the provisions of legislation.
This regulation on transitional clause is mentioned, the Land Procurement Budgets in the National Strategic Projects that have been allocated by the Minister / Chairman or the management of SOEs to the Land Acquisition Year 2016 and Year 2017 can still be used for the implementation of the Land Acquisition in accordance with the provisions of the legislation.
Assistant Deputy for Housing, Land and Infrastructure Financing Coordinating Ministry for Economic Affairs Bastari Panji Indra adding recently the realization of land acquisition funds is only Rp2.8 trillion of the total budget Rp17 trillion.
The government has provided funds for land acquisition of about Rp 20 trillion through state public service Asset Management agency in the State Budget for 2017. Private sectors is expected willing to invest up to Rp 1,700 trillion for the infrastructure needs until 2019 but the realization only about Rp 110 trillion.