affected lands, structures and trees. The RCS results will be included in the updated LARP.
101. At the implementation phase, the Land Acquisition Implementation Chairman at the KATR/BPN or the Regional Land Office will assign appraisal services in accordance with government procurement regulations. If the provision of the independent appraisal cannot be obtained or implemented within a period of 30 working days, the Land Acquisition implementation chairman will appoint a government appraiser licensed by the Minister of Finance. Appraiser conducts compensation assessment for: (i) physical losses that include land, over ground and underground space, structure, plants and other assets related with the land; and (ii) non-physical losses that include (a) loss of business or job and profession shift; (b) emotional loss (solatium);
(c) transaction cost; (d) compensation for waiting period; (e) loss of residual land; and (f) other physical damages. Assessment will be conducted per plot of land affected by the subproject. The assessment results will be the official basis for compensation determination that will be delivered to the entitled parties.
102. Valuation of compensation for land acquisition objects will refer to the Indonesia Valuation Standards 204. The adequate replacement value shall be higher than the Property Market Value, or at least equal to the compensation transaction value of similar property condition (if the comparator is similar property from a compensation transaction).
the harmonization with the ADB SPS of 2009, there are still key gaps that should be bridged. A comparison between ADB SPS 2009 and government regulations on IR along with gap filling measures is proposed in the table below.
Table 26: Gaps between ADB’s SPS (2009) on IR and GOI’s Laws and Regulations on Land Acquisition and Resettlement and Proposed Gap-filling Measures
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures 1 Objective To avoid involuntary
resettlement (IR) wherever possible;
to minimize involuntary
resettlement by exploring project
and design
alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels;
and to improve the standards of living of the displaced poor and other vulnerable groups.
With regard to avoid involuntary resettlement wherever possible to minimize involuntary resettlement by exploring project and design alternatives, the Appendix II of Government Regulation No. 22/2021 requires
assessment of
alternatives (project and / or design) for the analysis of the project environmental and social impacts assessment.
Article 3 of Law No.
2/2012 stipulates that one of the objectives of land acquisition in the public interest shall have the objectives is to improve the welfare and prosperity of the people, state and society by guaranteeing the legal interest of the entitled party.
There is no explicit requirement to improve the living standards of the displaced poor and other vulnerable
groups after
involuntary resettlement.
The subproject has tried to avoid IR impacts from the feasibility stage of the design by exploring alternatives. Measures which have been taken to avoid or minimize involuntary resettlement impacts are included in this LARP.
During the LARP preparation, the Social Safeguards Team assessed whether the APs can readily make up for livelihood impacts
through cash
compensation or asset restoration or whether participation in livelihood rehabilitation programs would be necessary and suitable to fully restore her/his livelihood. The assessment results indicate that all the 16 AHs (67 APs) will be severely AHs and these AHs need to support through the LRP. The livelihood restoration measures have been consulted with the AHs
during LARP
preparation.
2 Scope and Triggers
The involuntary resettlement safeguard cover physical
displacement (relocation, loss of residential land, or loss of shelter) and economic
displacement (loss of land, assets, access to assets, income sources, or
means of
livelihoods)
because of (i)
Article 7 of Government Regulation No. 19/2021 stipulates that the Land Acquisition Plan shall be prepared based on feasibility studies including social impacts that may arise because of land acquisition and development.
There is no explicit requirement to cover any impacts caused by restrictions on land use or on access to legally designated parks and protected areas.
The scope shall include
both economic
displacement and physical displacement because of (i) involuntary acquisition of land or (ii) involuntary restrictions on land use or access to legally designated parks and protected areas. It covers whether such losses and involuntary restrictions are full or partial, permanent or temporary.
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures involuntary
acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such
losses and
involuntary
restrictions are full or partial, permanent or temporary.
3 Screening of the project
Screen the project early on to identify past, present, and future involuntary resettlement
Article 14 of Government Regulation No. 19/2021 stipulates that every agency that requires land for public-interest development shall prepare a Land Acquisition Plan which is based on (i) spatial plan, (ii) development priorities as stated in the medium- term development plan, the strategic plan, and the working plan of the relevant agencies.
Article 7 of Government Regulation No. 19/2021 sets out that the Land Acquisition Plan shall be prepared based on feasibility studies which include (i) socio- economic survey; (ii) location feasibility; (iii) analysis of development costs and benefits for the region and community;
(iv) estimated land value;
(v) environmental impacts and social impacts that may arise as a result of land acquisition; and (vi) other necessary studies.
Government
Regulation No.
19/2021 requires a feasibility study for land acquisition that must include a socio- economic survey and discussion of social impacts but does not explicitly require screening for involuntary
resettlement. The depth of screening for socio-economic impacts as mandated for a feasibility study is not stipulated in the law. There is no explicit requirement to conduct screening and assessment of impacts when land acquisition involves easement rights, land purchase or land use restrictions, as opposed to direct acquisition.
Screen the subproject to identify involuntary resettlement impacts and risks in accordance with the requirements of ADB’s SPS (2009).
4 Meaningful consultatio n
Carry out
meaningful
consultations with
DPs, host
communities, and concerned
nongovernment organizations.
Pay particular attention to the needs of vulnerable
Articles 29, 30, 31, 32 of Government Regulation No. 19/2021 and Articles 59, 60, 61, 62 and 63 of Ministry Agraria/Spatial Planning (MASP) Regulation 19/2021 describe in detail the requirements of public consultation with entitled parties, property
Government
Regulation No.
19/2021 and MASP Regulation No.
19/2021 regulate consultations with the entitled parties in determining form of compensation, but not the communities surrounding.
Meaningful consultation and participation of APs have been conducted in accordance with the requirement of the ADB’s SPS (2009)
during LARP
preparation and implementation stages.
Consultations and discussions with APs
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures
groups managers and/or
property users and/or affected communities during land acquisition preparation.
Articles 71, 72, 73 and 74
of Government
Regulation No. 19/2021 and Articles 112, 113 and 114 of MASP Regulation 19/2021 describe requirements of consultation with entitled parties in determining form of compensation.
There is no mention of requirements on public consultation and community
participation during monitoring of land acquisition
implementation.
Government
Regulation No.
19/2021 requires public consultation before a decision of location determination for land acquisition, however, the law does
not require
consultations with host communities.
Article 30 of Government
Regulation No.
19/2021 stipulates that affected communities as well as those who are directly affected are invited to participate in consultations, but there is no mention of ensuring that vulnerable groups as per the definition of ADB’s SPS (2009) are involved in.
Article 32 of Government No.
22/2021 requires the involvement of vulnerable community in the public consultation. However,
“vulnerable
community” is referred to the layer of community that is most potentially affected by the business and/or activity so that it requires more attention so that it does not adversely affect their lives – the definition is not clear.
and stakeholders will be carried out continuously during the process of land acquisition and the subproject
implementation.
Vulnerable groups (the poor, the landless, the elderly, women and children, Indigenous Peoples, and those without legal title to land) will be paid particular attention during LARP preparation, updating and implementation.
5 Information disclosure
Inform all DPs of their entitlements and resettlement options and ensure their participation in planning,
Article 55 of Law No.
2/2012 regulates that the entitled parties shall have rights to (i) have knowledge of the performance of the land
There is no provision on standalone disclosure of LARP to the APs.
All the APs, including APs without titles to land, will participate in planning,
implementation, monitoring, and
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures implementation,
monitoring, and evaluation of resettlement;
acquisition; and (ii) receive information about the land acquisition.
Land Law 2/2012 stipulates that one principle of land
acquisition is
“Transparency” which means land acquisition for development will be carried out by providing access to the community to obtain information related to land acquisition.
Article 31 of Government Regulation No. 19/2021 and Article 61 of MASP 119/2021 regulate that a Land Acquisition Plan shall be explained during public consultation including (i) purpose and objectives of public- interest development plan; (ii) stages and time of the land acquisition process; (iii) roles of the appraiser in determining
the value of
compensation; (iv) incentives to be granted to entitled parties; (v) affected assets; (vi) form of compensation; and (vii) rights and obligations of entitled parties, property managers and/or property users and affected communities.
Some provisions under the Law No. 2/2012 (Articles 17, 26, Article 29) and Government Regulation No. 19/2021 (Articles 48, 49, 64) regulate requirements on disclosure of the development plan, IOL result, project location determination through
newspapers and
electronic media.
evaluation of
resettlement and be informed of and consulted about their entitlements on compensation and assistance and resettlement options during consultation activities.
Documents including (i) LARP endorsed by the government/EA and concurred by ADB; (ii) new LARP, updated LARP, or addendum to the LARP, any corrective action plan prepared during implementation, if any;
and (iii) semiannual safeguards monitoring reports will be made available on the project and ADB websites. In addition, these documents will also be disclosed to APs and other stakeholders in the village, and district offices in Bahasa Indonesia and made available at the subproject office and offices of the affected villages and subdistricts for public access upon request.
6 Grievance redress mechanis m
Establish a grievance redress mechanism to receive and facilitate resolution
Article 135 of Government Regulation No. 19/2021 stipulates that in the event that there are reports and/or
There is no clear requirement on GRM records and the official appointed Public Complaint Officer by
A project-level GRM will be established in accordance with ADB requirements and the Government
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures of the DPs’
concerns. Support the social and cultural institutions of DPs and their host population.
complaints from the community to the head of ministries/agencies, the Attorney General's Office of the Republic of
Indonesia, the
Indonesian National Police, governors, or regents/mayors
regarding deviations or abuse of authority in the implementation of Land Procurement for Public- Interest development and Nationally Strategic Projects, the settlement shall be conducted by prioritizing the administrative process in accordance with provisions of laws and regulations in the field of government
administration.
Government Regulation No. 19/2021 stipulates some provisions regarding resolution of objections of DPs regarding location of the development plan, results of inventory, form of compensation, compensation amounts.
the project. procedures. The GRM is a systematic process for receiving, recording, evaluating, and addressing an affected person’s project-related grievances
transparently and within a reasonable period;
The proposed project- level GRM has been consulted with and agreed upon by APs and relevant stakeholders in the public consultation meetings conducted
during LARP
preparation.
7 Compensa tion unit rates
The rate of compensation for acquired housing, land, and other assets will be calculated at full replacement costs.
The calculation of full replacement cost will be based on the following:
elements: (i) fair market value; (ii) transaction costs;
(iii) interest accrued, (iv) transitional and restoration costs;
and (v) other applicable
payments, if any.
Depreciation of structures and assets should not
According to Article 1 of Government Regulation No. 19/2021 and Article 1 of MASP Regulation 19/2021, compensation is a reasonable and fair compensation to the entitled parties, managers and/or users of goods in the land acquisition process.
According to Article 68 of Government Regulation No. 19/2021 and Article 110 of MASP Regulation 19/2021, an independent and professional appraiser who obtained a license of assessment practice from the minister in charge of government affairs in the state finance sector has the
Government
Regulation No.
19/2021 is silent on the application of depreciation when calculating
compensation for affected structures.
MAPPI applies depreciation for structures, however, this will not be applied if the principle on “no depreciation” is included in the LARP or based on the request of the project proponent/agency requesting the appraiser service.11 For affected buildings, MAPPI applies solatium (emotional
Compensation will cover all the impacts set forth in Article 68 of Law No.
19/2021.
Compensation at full replacement cost will be applied. Depreciation of structures and assets shall not be taken into account.
An independent and qualified appraiser will be mobilized to appraise the replacement cost of affected lands and non- land assets.
In case of involuntary resettlement, capital gains tax and the costs of transferring ownership, including the cost of new land certificates, will not be
11 Indonesia Valuation Standards 306 (SPI 306). Land Acquisition Assessment for Development for the Public Interest.
Code of Ethics Indonesia Appraisers and Indonesia Standard, 2015, Jakarta, Gelora Karya Bharata, 2015.
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures be taken into
account.
The replacement cost shall be determined by an independent appraiser
experienced in assessing acquired assets.
duty to appraise the amount of compensation per land plot covering (i) lands; (ii) aboveground space and underground spaces; (iii) buildings; (iv) plants; (v) objects related to land; and (vi) other assessable losses Article 69 of Government Regulation No. 19/2021 and Article 111 of MASP Regulation 19/2021 state that compensation to be appraised by the Appraiser is the value of
the time of
announcement of the Determination of Location of Public- interest development by considering the waiting period at the waiting period at the time of compensation payment.
compensation) of 5% - 30% of the total compensation for physical loss.
In the case of SPI
applies the
depreciation, the depreciation and deduction for affected structures will be given back to the AHs and put it in the premium value component.
There is no provision on compensation for
people using
government’s land less than 10 years.
deducted from the compensation of those who will lose lands.
The APs will be provided
with adequate
information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and region, and
other related
information. Based on the ADB SPS (2009) Safeguard Requirement 2, any deductions from transaction process of land acquisition need to be paid by the project.
8 Compensa tion for land users (tenant farmers / croppers / share- croppers)
Compensation for affected land and non-land assets should be provided at replacement cost
Presidential Regulation 62/2018 and MASP Regulation 6/2020
stipulate that
compensation should consider the cost of mobilization, cost for moving, house rent during the transition period, and loss of income according to valuation by independent appraisal.
Compensation will only be provided to land users that can prove their physical control over the government land for at least 10 years continuously
Government Regulation No. 19/2021 stipulates that owners of trees/plants are entitled for compensation of affected trees/plants.
There is no provision on compensation for
people using
government’s land less than 10 years.
Entitlements as per Government
Regulation No.
19/2021 are only eligible when the land acquisition is applying location determination.
Compensation for informal users will be provided based on losses at replacement cost prior to economic
and physical
displacement.
9 Compensa tion and assistance to DPs without legal title or any recognizab le legal
Ensure DPs without titles or any recognizable legal rights to land are eligible for resettlement assistance and compensation at replacement cost
The legal framework provides compensation and assistance for DPs without tittle or any recognizable legal rights to land unless their legitimate claims cannot be proven/recognized prior to land LAR
Application of full replacement cost for DPs without legal title or any recognizable legal rights is unclear.
There is no provision on compensation for
people using
government’s land less
Compensation for non- land assets of APs without title or any recognizable legal rights at replacement cost will be applied. However, the eligibility of the APs will be defined by the cut-off date. Any
No Issues ADB’s SPS, 2009 GOI’s Laws Gaps between ADB’s SPS and GOI’s Laws
Proposed Gap-filling Measures rights for loss of non-land
assets
implementation.
Presidential Regulation 68/2018 mentions compensation will be provided for buildings and plants over land that controlled by people over government-owned lands must be proved those physical control of the land at least 10 years continuously.
than 10 years.
There is a principle that the APs should have better live, but no clear requirement on assistance to improve the livelihood of the APs in the article.
informal settlers who encroach on the subproject area after the cut-off date will not be eligible for any compensation and assistance under the subproject.
10 Provide physically and economica lly DPs with needed assistance
Provide physically and economically DPs with needed assistance,
including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable
access to
employment and production
opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities;
(ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community
services, as required.
Law No. 1/2011 and Government Regulation 88/ 2014 on Housing and Settlement Area stipulate general and technical guidelines applicable to housing and settlement projects for persons displaced because of land acquisition for public purposes. Central, provincial, regency, and city governments are responsible for developing norms, standards, procedures, and criteria for housing development. Provisions on settlement, housing, basic facilities, supporting facilities, general utilities, and
other related
requirements sufficiently stipulate that relocation must be conducted in an appropriate manner, including by providing secured tenure, decent
housing, civic
infrastructure, and community services.
Article 76 and Article 80
of Government
Regulation No. 19/2021 and Articles 115, 188 and 119 of MASP Regulation 19/2021 regulate resettlement as one of forms of compensation, however, they do not contain specific language regarding the issues of securing tenure to land ensuring better housing for DPs in resettlement sites, and public facilities as
The laws and regulations state on resettlement support, yet it is limited to support for housing and settlement area development and moving cost, but does not include secured tenure to relocation land, transitional
support and
development
assistance, such as land development, credit facilities,
training, or
employment opportunities.
Compensation for income loss at full replacement cost based on the duration of business disruption has been included in the entitlement matrix.
Secured tenure to relocation land will be ensured through covering the cost of registration fees and facilitating the process of securing land tenure.
Physically relocated households will be
provided with
transitional support and be entitled to participate in the LRP.