Publications

Case study land acquisition in the oil and gas industry in Indonesia

Proceedings Title : Proc. Indon. Petrol. Assoc., 39th Ann. Conv., 2015

Land Acquisition in Indonesia is still challenging due to possible impact to legal, social and economic aspect to community particularly to the land owners. Since the House of Representative (DPR) issued a Law No. 2 Year 2012 on Land Acquisition for the Development for Public Interest in 2012, and in the same year President Republic of Indonesia has released the technical guidance which is Presidential Regulation No. 71 Year 2012, now the land acquisition process has provided better legal certainty compared to the previous Regulation stipulating the similar matter. The law covers land acquisition for infrastructure projects such as roads, dams, tunnels, railways, ports and airports, oil, gas and geothermal facilities, power plants and their distribution networks, hospital and telecom networks. It is limited to government projects, however it allows government to partner with state owned firms and private sectors. In the oil and gas industry, SKKMIGAS has regulated the land procurement through PTK No. 0027/PTK/XII/2007. Before the law and the presidential regulation released, a PSC can directly dealing and undertaking land acquisition process which was facilitated by local government. Currently, based on the law and the presidential regulation, a PSC is only allowed to coordinate and communicate with SKKMIGAS. The dominant implementer of land acquisition process, a team consists of local government team such as regent/major, head of government agency at regency level, will carry on land acquisition process and activity. This paper will present an ERM case study dealing with land acquisition process, which related to the facts of benefits and challenges of acquisition’s implementation in oil and gas industry in Indonesia.

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