Introducing The Land Bank And Other Changes In The Real Estate Sector

The seventh edition of "Omnibus Law 2020: Overview Series" will highlight changes in real estate sector. This alert is the second alert on real estate.

In our first real estate client update, we discussed changes to the spatial utilisation permit, building permits, amendments under the Housing Law and Apartment Law, and foreign ownership of apartment units. In this second update, we discuss other critical changes to this sector, which include land procurement for public purposes, the establishment of the Land Bank, and strengthening of the Right to Manage (Hak Pengelolaan) title.

Land Procurement for Public Purposes

Land procurement in Indonesia is known to be a time-consuming process, mainly because of the difficulty in determining fair compensation. Previously, the amount and form of compensation depended on the negotiation between the parties, which could be tedious and lengthy and would often delay the land procurement process.