Consignment in Land Acquisition

Abstract

This paper provides an overview of land acquisition for public interest projects with a focus on a specific aspect of the process: the consignment of the compensation payment in court when an affected land owner rejects the compensation offered by the government institution that requires the land. Consignment has become a common practice in cases where the government and land owner can not reach a mutual agreement on land compensation during the negotiation time frame established by regulation. The first part of this paper presents some general facts about consignment and how it is regulated in Indonesia. The second part describes some current cases of consignment in land acquisition. The third part clarifies some parts in the current regulation which cause delays to land acquisition and have negative social effects especially related to consignment. The last part of the paper suggests some policies which may facilitate land acquisition in Indonesia.