Country Report Indonesia April 2011

Economic policy: NGOs campaign against reforms to land acquisition

A coalition of non-governmental organisations (NGOs) has launched a campaign against attempts by the government to reform the procedures governing land acquisitions. The complex rules surrounding the acquisition of privately owned land for infrastructure projects deemed to be in the public interest have hampered investment in recent years. Partly as a result of this Indonesia's infrastructure remains hopelessly inadequate, posing a significant obstacle to economic growth. A draft law on land acquisition aims to clarify the rules. The National Development Planning Agency (Bappenas) hopes that the bill, once passed into law, will support investments exceeding US$100bn in a range of infrastructure projects, from roads and railways to power generation and transmission. However, an alliance of NGOs has raised objections to the bill, on the grounds that it would legalise land seizures and forced evictions. The alliance, which organised a protest against the bill outside the presidential palace on March 25th, says that the definition of public interest used in the bill is ambiguous, leaving it open to abuse. NGOs campaigning against the bill include Walhi, an outspoken environmental group, the Legal Aid Foundation (YLBH) and the Committee for Missing Persons and Victims of Violence (Kontras), a human-rights watchdog.

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