Infrastructure: President signed land acquisition regulation
President Susilo Bambang Yudhoyono has finally signed a land acquisition
regulation of Presidential Decree No2/2012.
Investors and business in Indonesia have been waiting for the regulation for many
months.
The regulation set a maximum time of 583 days for the completion of land acquisition
and details steps to be taken for the handover of land for public projects.
The regulation would not be applicable retroactively.
Analyst Comment:
The regulation provides clarity on the time frame and steps to be taken in the land
acquisition process. The exact time frame should ensure timely completion of
infrastructure projects.
While we believe that the new regulation would accelerate the development in the
domestic infrastructure, it would only be applicable to the new projects. Projects
which currently undergoing land acquisition process would adhere to the previous
regulation.
Several sectors which should benefit from this new regulation are: Toll road,
construction, and cement.