Land procurement for the public interest development (“Land Procurement”) is an activity with an objective to acquire the land rights which will be allocated for public utilities, by giving the compensation to the land owner. The determination of compensation often causes a dispute in the court due to the disagreement on the form and value of compensation during the deliberation meeting. In brief, after (i) the announcement of inventory and identification result or (ii) the verification and revision of inventory and identification result (due to objection by the land owner), the chairman of land procurement will appoint a land valuer to appraise the compensation value of the land. The result of land value will be used in the deliberation meeting for determining the compensation of land.

The Examination Process of Objection

Under Supreme Court No. 3 of 2016, the objection on the form and/or value of compensation shall be submitted in the form of application (“Objection”) to the district court in the jurisdiction of land location, at the latest 14 business days after the deliberation meeting. It is important to note that the Objection shall be accompanied with preliminary evidences, as follows:

  1. copy of documents related to identity of claimant;
  2. copy documents to prove that the claimant is the rightful party on the object of land procurement.

Different from the examination of general civil case, the examination of Objection is conducted without the agendas of mediation, and submission of exception, reconvention, rebuttal, rejoinder and conclusion. The examination of Objection consists of reading out of Objection, reply by respondent, examination of evidences and decision.

Sources  Procedure and Mechanism for Downgrading and Upgrading The Right of Land

The district court shall issue a decision no later than 30 business days from the date of registration. The parties may file a cassation to the Supreme Court towards the decision of district court at the latest 14 business days from the date of decision is read by the judge. The memory of cassation is submitted no later than 7 business days after the statement of cassation is made. The respondent may reply the memory of cassation through a contra memory of cassation at the latest 7 business days from the receipt of memory of cassation. The decision by the Supreme Court Decision is final and binding, and the parties may not file a judicial review.

Consignation of Compensation

The institution that needs the land procurement may file an application of consignation to the district court at the domicile of respondent, if the following requirements are fulfilled:

  1. the land owner refuses the form and/or value of compensation, but not filling the Objection;

  2. the land owner refuses the form and/or value of compensation, where decision is already final and binding;

  3. the whereabout of land owner is unknown.

  4. the land (i) is still under dispute in a court, (ii) ownership is in dispute, (iii) is confiscated by the authorized officers, and (iv) is under security as collateral by bank.

The chief of district court will issue a determination that requires the bailiff with two witnesses to make a payment offer to the respondent at his domicile. The rejection or acceptance of the offering shall be made in the minutes of offering. The chief of district court will determine the date of trial session for reviewing the application, and instruct the bailiff to summon the claimant and respondent.

Sources  The Land Bank Agency in Indonesia

After the issuance of consignation determination by the chairman of district court, the clerk shall make minutes of consignation which states that the compensation is kept in the clerk office’s treasury.

The compensation can be taken in the clerk office at the desired time by the respondent based on the following conditions:

  1. if the land is in dispute, the compensation can be taken only after the decision is final and binding or the dispute is settled amicably by the parties;

  2. if the land is seized, the compensation can be taken after the decision is final and binding, and the seizure has been lifted;

if the land is secured as collateral by bank, the compensation can be taken after the respondent obtain consent from the bank

Adrian Fernando