Indonesia Establishes Land Bank

Indonesia will set up a land bank to serve as a state-owned entity to acquire vacant properties such as abandoned houses, forgotten buildings and empty lots so that they can be repurposed. Minister of Agrarian Affairs and Spatial Planning Sofyan Djalil said in Jakarta the rules related to a land bank were specified in Chapter XIII, Article 180 of omnibus law on job creation. The state will acquire abandoned lands or those that are not cultivated, not used or not utilized by the owners of rights or permit holders within two years. These rights can be revoked and returned to the state, while the land bank assets will be regulated under government regulations. "The land will be repurposed and redistributed under strict regulations. It allows the state to provide land for settlements in urban areas at low prices or even for free,” said the minister. Currently, low-income people working in Jakarta live outside the city, far from their workplace. As a result, they have to pay large costs for transportation and do not have enough time to rest that affects productivity. According to the minister, the land bank will be managed by the Land Bank Board under the omnibus law on job creation.