THE ESTABLISHMENT OF LAND BANK INSTITUTIONS FOR STRENGTHENING THE NATIONAL DEVELOPMENT

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1 International Journal of Civil Engineering and Technology (IJCIET) Volume 8, Issue 11, November 2017, pp , Article ID: IJCIET_08_11_074 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed THE ESTABLISHMENT OF LAND BANK INSTITUTIONS FOR STRENGTHENING THE NATIONAL DEVELOPMENT Firman Freaddy Busroh Sumpah Pemuda School of Law, Palembang Indonesia Faisal Santiago Universitas Borobudur, Faculty of Law, Jakarta Indonesia ABSTRACT One important element in national development is the availability of sufficient land. The problem of unavailability of land often hinders the government to build infrastructure. In addition, land is often the object of the land speculators to achieve great benefits. This is of course detrimental to the government because the costs incurred to provide land becomes large and burden the government budget. For that the government needs to find alternatives, one of them by forming a land bank. The establishment of a land bank is very urgent for the development of a more just and prosperous spatial and regional planning plan. With the existence of a land bank, land acquisition activities will not become a problem for the future government. The government is just preparing the spatial planning plan in accordance with the direction of national development. By the existence of land bank, then the action of land to be used as an object of land speculators can be minimized and control the price of land of an area. Keywords: land bank; national development; land procurement. Cite this Article: Firman Freaddy Busroh and Faisal Santiago, The Establishment of Land Bank Institutions for Strengthening the National Development, International Journal of Civil Engineering and Technology, 8(11), 2017, pp INTRODUCTION Land as the basic right of every person, its existence is guaranteed in the 1945 Constitution. The realization of the right to land is regulated in Law Number 5 in the year of 1960 on Basic Regulation of Agrarian Principles. At the beginning of the enactment of Law No. 5 of 1960 on Basic Regulations of Agrarian Principles, hereinafter referred to as UUPA has begun to feel the existence of symptoms of inequality of ownership and control of land. Comparison between the availability of land as a scarce natural resource on the one hand, and the increase editor@iaeme.com

2 Firman Freaddy Busroh and Faisal Santiago of population with various needs of the land on the other hand, is not easy to find its problem solving. (Maria SW Sumardjono, 2009). Access to acquire and utilize land to meet basic human needs has not been enjoyed by everyone because of differences in access to capital and political access. The presence of UUPA should minimize inequality in access to and use of the land by including provisions on restrictions on land ownership and control, particularly agricultural land under Articles 7, 10, 17 of the BAL. The principle of Landreform is further elaborated in Law Number 56 Prp 1960 on Stipulation of Land Area of Agriculture. In addition to the restrictions on the ownership and control of agricultural land, Article 12 of Law Number 56 Prp of 1960 states that "the maximum area and amount of land for housing and other development, and the subsequent implementation of this Government Regulation in Lieu of this Law shall be governed by a Government Regulation". It turns out to date that regulates the limitation of land area for the company, especially those related to the Location Permit, among others Regulation of the State Minister of Agrarian Affairs / Head of BPN No. 5 of 2015 on the Location Permit. The maximum allowable land area is determined by type of business (housing and residential development, industrial estate, plantation and embankment) for each province in Indonesia. The mandate of Article 12 of Law Number 56 Prp of 1960 concerning the limitation of the maximum area and the amount of land for buildings that can be owned by individual persons has not been successfully formulated to date. The incidence of inequality and injustice in access to land acquisition and utilization is increasingly felt after the General Agreement on Tariffs and Trade (GATT) and the Asia- Pacific Economic Cooperation Organization (APEC), and this can be seen as having an impact on national land policies. The shift of land policies that increasingly tend to be pro-capital encourages the need to re-question the policy orientation outlined by UUPA as the embodiment of Article 33 Paragraph (3) of the 1945 Constitution especially with regard to the phrase "for the greatest prosperity of the people". In the course of time, the national development policy based on economic growth has encouraged the issuance of various sectoral laws and regulations established without regard to the foundation, philosophy, orientation and principles mandated by the BAL. As a result, there is a clash of various laws and regulations with all its impact. The increasing intensity of development and the limited availability of land supply have an increasingly difficult impact on land acquisition for various purposes, soaring land prices in uncontrolled and irregular development trends in land use, especially in strategic areas. The skyrocketing price of land makes it increasingly difficult for the government to undertake development for the provision of infrastructure and public facilities, while for the marginalized people, the inability to reach the land prices is increasingly displaced. In addition, soaring land prices can also lead to land speculators. This situation raises the idea to form a land bank institution that had emerged in the 1980s. In Indonesia, activities that can be called embryos of land banks include JIEP (Jakarta Industrial Estate Pulo Gadung) in Jakarta, and SIER (Surabaya Industrial Estate Rungkut) in Surabaya (Maria SW Sumardjono, 2006). The idea of establishing a land bank was delivered by the Minister of Agrarian Affairs and Spatial Planning (ATR) / Head of the National Land Agency (BPN) Sofyan Djalil. Sofyan Djalil stated that the land bank will operate in The existence of the land Bank aims to ensure the availability of land for projects related to public interest. Ministry of Agrarian and Spatial Planning is currently completing the draft Government Regulation (PP) as legal umbrella of the land bank institution. Later the land bank will be shaped like a Public Service editor@iaeme.com

3 The Establishment of Land Bank Institutions for Strengthening the National Development Agency (BLU). Land Bank will manage abandoned state land or dispute. Later the land will be allocated for infrastructure development. The Land Bank will govern which land for agrarian reform, industrial estate, for housing, infrastructure and other areas. The Ministry of Agrarian Affairs and Spatial Planning will be given the authority to develop land from the Land Bank through auction mechanism. Later the party who will do the development can ask for land to be worked on and then will be reviewed by the Land Bank how much benefit for the community ( 2017). This is in line with what was delivered by President Joko Widodo who ordered every region to prepare the land bank as a housing land to address the limited land, while the population continues to grow. The problem of limited land is also a big problem facing the government. The population continues to grow but the available land is always fixed and we have no land bank. So the President also asked each of these areas to prepare the land bank. If the area has a land bank, it will be easy for the developer to build because the land has been available. With the existence of a land bank it will eradicate speculators or land mafia that controls so that the price of land becomes unnatural and continue to rise. The President also claimed to have ordered the relevant ministers to find the necessary land such as the Minister of Agrarian Affairs and Spatial Planning / BPN, the Minister of Environment and Forestry to start looking for future land acquisition for future land banks. In addition to the land bank, the President also acknowledged that there were problems related to spatial planning and control, especially the integration of housing with public facilities. Many developers withdraw because it is difficult to get for example the allocation for clean water to plan the location of the housing or not integrated with public transportation available. It is the obligation of the Regional Government to see the existing spatial so that housing and public facilities are ntegrated. The problems also experienced by subsidized housing developers. Estimates of subsidies and spending on housing for approximately Rp74 trillion from the Ministry of Public Works and People's Housing, this is a small number which is jumping very high. The movement in this property should be fast. According to the President, subsidized housing is a subsidy in the form of housing construction liquidity facility (FPLP). The President also told that he had traveled to Cikarang, Balikpapan, Pekanbaru which have subsidized housing built by private but have good quality. ( 2017). The main objective of land policy is the provision of land needed for development in an appropriate location, at the right time and at a reasonable price. To control the price of land which is one of the tasks in the implementation of land policy, the government can intervene through various ways / techniques, for example: 1) land acquisition; 2) regulation / arrangement of stewardship of the land; 3) the provision, maturation and distribution of land through the institution of the land bank; and 4) tax policy. Thus the concept of a land bank institution is complex and of wide-ranging impact, the exploration of possibilities for its formation, in particular in relation to housing and industrial estate development requires comprehensive thinking to support national development. The idea of establishing a land bank has been urgently implemented given the rapid national development that needs to be realized through government policy.from the description above, the authors formulate the issues to be discussed: 1. What is the concept of the establishment of a land bank? 2. How is the existence of a land bank as a supporter of national development? editor@iaeme.com

4 Firman Freaddy Busroh and Faisal Santiago 2. THEORETICAL FRAMEWORK The meaning of Land Bank is an institution established to promote the environmental revitalization of the property, especially for the realignment of ownership and reuse of housing and urban settlements, in addition to some development that leads to an industry / commercial as the application of the authority of the land bank. Definition and activity of the land bank in the context of the public sector is as a government strategy to deal with urban renewal, preserving open space and stabilizing the value of land belonging to a particular area. Technically a land bank is a land purchase / acquisition practice with the intention of being developed / matured to meet future development needs. Land bank is a concept related to accessing land for the purposes of providing public services for housing, industry, agriculture, with land management, directing the land market and preventing land speculation. The basic principle of the formation of the Land Bank: 1. That the executor of urban land bank activities is directed as an effort to empower the land as the wealth of the Indonesian nation for the achievement of the people's welfare. It is intended that the land which is the asset of the nation should be utilized as fair and as optimal as possible in order to achieve the common goal of improving the welfare of society as a whole. 2. In an effort to realize the land institution, the role of government is needed, formal juridically it has become the authority of the government to regulate and organize allotment, use and supply of land and maintainers. 3. The land bank institution can guarantee the availability of land by seeking the improvement of utilization and the land use, and taking into account the physical condition of the soil, as well as the ratio of equilibrium of land distribution by aligning the interests of individuals, communities, governments and the private sector and always paying attention to the social functions of land in the context sustainable urban development. 4. In order for the activities of the land bank to achieve optimal land utilization and able to improve the welfare of the land owners, the way is actively involving the land owners in the management of the land bank institution (Supraba Sekarwati, 2003). The objective of the Land Bank as one of the alternative land procurement for public interest, has the objectives, among others: 1. Ensure the realization of the objectives formulated in Article 33 paragraph (3) of the 1945 Constitution namely that the earth, water and natural resources contained therein are controlled by the State and used for the greatest prosperity of the people whose realization is a sustainable national development, equitable and equal for the benefit of the masses; 2. As an instrument to implement various land policies and support the development of the region efficiently and effectively; 3. Controlling the procurement, control and utilization of land in a fair and reasonable way in carrying out development. In addition, the specific objectives of the land bank are: 1. Provide ready to build land both physically and administratively, ie land to be sold has been completed with a certificate of land rights; 2. Provide land for various purposes, especially the location of settlement development for the middle class down, able to control the price of land and eradicate land speculation; editor@iaeme.com

5 The Establishment of Land Bank Institutions for Strengthening the National Development While the benefits of land banks include: 1. Controlling the balance between the need for land for development and supplies. 2. To streamline and guarantee the value of land properly and fairly. 3. Controlling the mechanism of the land market and ensuring the efficiency and rationality of prices. 4. Integrate policy, strategy, implementation and evaluation related to land. Besides the advantages there are also losses that can be caused by the activities of the land bank institutions, they are: 1. The landowner community may be tempted to quickly sell the land; 2. Sale of land after the maturity of the manager becomes multiplied; 3. Land becomes a commodity tool contrary to article 6 and article 13 of BAL. In order to achieve the objectives and benefit from the activities of the land bank as described previously, it is necessary to provide a legal regulation that can define various legal aspects needed to achieve the objective of establishing a land bank institution as a manager of urban land provision. The formulation of the policy of the land bank is a policy that regulates and controls the activities of the land bank institutions in the form of terms of its formation and operational activities. The policy of the land bank referred to above should include four legal aspects: 1. The institution of the land bank must contribute significantly to improve the welfare of the people and create new sources of land for the welfare of the people. 2. The land bank institution should contribute significantly to improve equitable justice in the distribution of land in relation to land tenure, ownership and use. 3. The land bank institution should contribute in providing physical and administrative land to ensure the sustainability of urban development with the policy of land allocation, both for social activities and for commercial activities. 4. The land bank institution should be able to improve the control system on soil values so that it can be reached by the ability of all levels of society. Land Bank as a solution for the procurement of land for development for the public interest, it can be seen some functions of the land bank in urban areas, namely: 1. Land bank as Land Keeper as the land collector, the activity of the land bank institution is to conduct an inventory of land that will be the object of management of the land bank. along with land accumulation activities, also collect and provide complete, accurate, integrated and actual land data. 2. Land Bank (Land Warantee).The land bank in carrying out its activities refers to the spatial plan to secure the provision, designation and utilization of land which has been established based on the land use plan which is an integral part of the existing spatial plan. 3. Land Bank as Land Purchaser. Through Land Bank activities referring to the designated spatial plan, the implementation starts from planning, utilization and control. through spatial planning, land banks can exercise control over land tenure. so that land tenure is not centered on certain groups of people. 4. Land Bank as Land Value. Through the Land Bank, it is expected that price and value of land can be established and controlled in accordance with applicable legislation. 5. Land Bank as Land Distributor. Land Bank activities include land acquisition activities, land maturation and land distribution in accordance with the designation and use editor@iaeme.com

6 Firman Freaddy Busroh and Faisal Santiago 6. Land Bank as The Land Management. Land Bank as the activity of land management conceptually should contain policies and strategies for optimizing land use and utilization, so in the case of the existence of the Land Bank should be able to direct the development of land use (Ranitya Ganindha, 2016). 3. RESEARCH METHODS Research methods used in this paper using normative research methods and a research approach of normative juridical. The data used are secondary data obtained from literature study. The research materials used are primary legal materials, namely legislation and government policy, secondary law materials namely journal, book and literature, tertiary law material is news obtained from print media and online media. From these materials, an analytical study was conducted to examine the problem and to get the answer to the problem. 4. DISCUSSION The current Indonesian government has designed national development policies, and strategies. In the Era of Government Working Cabinet of President Jokowi, the direction of national development needs to start from strengthening economic development. Economic development is an effort made by the Indonesian government to improve the welfare of people throughout Indonesia. Development policies and strategies have dramatically altered economic structures and achieved high levels of economic growth. Strategy is the steps that contain indictive programs to realize the vision and mission. Strategies should serve as an important reference in development planning. Strategy formulation is a statement that explains how goals and objectives can be achieved which are further clarified with a series of policy directions. The vision of Indonesia's national economic development span of 20 years ie from 2005 to 2025 which makes Indonesia an independent, fair, prosperous and leading. Independent nation is a nation capable of aligning itself with other nations who have advanced using their own abilities and strengths. A country is said to be more advanced if its human resources have: the personality of the nation, a noble character and a high level of education. A just nation is a nation in which there is no discrimination between individuals, groups or between regions. A prosperous nation is a nation that has been able to meet its needs and to provide meaning and significance for other nations in the world. Meanwhile the vision of Indonesia's development includes: 1. Realizing a society that has noble character, moral, ethical, cultured and civilized based on Pancasila philosophy. 2. Creating a competitive nation. 3. Creating a democratic Indonesia based on law. 4. Creating a safe, peaceful and united Indonesia. 5. Achieve equitable development and justice. 6. Creating a beautiful and sustainable Indonesia. 7. Creating Indonesia as a unitary state that is independent, advanced, strong and based on national interests. 8. Creating Indonesia which plays an important role in the interaction of the nation in the international world editor@iaeme.com

7 The Establishment of Land Bank Institutions for Strengthening the National Development The strategy to carry out the vision and mission is described gradually in the 5-year period or RPJM (Middle-Term Development Plan) with priority scale and development strategy in previous periods. Stages of priority scale and starategi RPJM are described as follows: 1. The 1st RPJM ( ) is redirected to organize Indonesia in all areas shown to create a safe and peaceful, just and democratic Indonesia, and the level of welfare increases. 2. The 2nd RPJM ( ) is shown to further strengthen Indonesia's development in all areas with more emphasis on improving the quality of human resources, including in science and technology and strengthening the competitiveness of the economy. 3. The 3rd RPJM ( ), isaimed to further strengthen the development of all fields with the emphasis on the attainment of competitive competitiveness of the economy based on the advantages of natural resources and quality human resources and the mastery of science and technology which continues to increase. 4. The 4th RPJM ( ) is aimed at bringing an independent, just, prosperous and leading of Indonesian society through the acceleration of development in various fields by emphasizing the establishment of a robust economic structure based on competitive advantage in various areas which is supported by human resources which is qualified and competitive. Referring to the problems and challenges which are being faced by Indonesia, the general policy direction of national development is as follows: 1. The general policy direction for continuing development to achieve prosperous Indonesia. Indonesia is reflected in the welfare of the community as a whole in the form of acceleration of economic development supported by science and technology, poverty reduction, reduction of unemployment rate which is realized by increasing the quality of human resources, improving basic infrastructure, and by preserving the environment continuously. 2. The general policy direction to strengthen the pillars of democracy by institutional strengthening and leading to the establishment of public order, the elimination of all forms of discrimination, the recognition and application of human rights and freedom of responsibility. 3. Common policy directions to strengthen the general dimension of justice in all areas including the reduction of interregional development gaps (including rural-urban) as well as gender disparities. Justice can also be realized if the legal system is functioning in a credible, fair and free manner (illegal fees) and indiscriminate. Similarly, consistent corruption eradication is necessary to create clean governance. To strengthen the direction, policies and strategies of national development, it is necessary to support the performance of a solid, measurable and targeted cabinet. The idea of establishing a land bank institution is to strengthen national development. In general, the land bank institution is intended as any government activity to provide land that will be allocated its use in the future. Judging from its function, the land bank institution can be divided into two categories: general land banking institutions and special land bank institutions (special or land banking projects). In the sense of public land bank institutions there are activities undertaken by government agencies to provide the provision, maturation and distribution of land for all types of land use either public or private, without prior use, in order to monitor the pattern of urban development and / or regulate the price of land and / or acquire capital gains from more value as a result of public investment and / or regulating land use, including on time, location, type and scale of its development (Harvey L. Flechner, 1974) editor@iaeme.com

8 Firman Freaddy Busroh and Faisal Santiago The problem for Indonesia, which of the two categories of land bank institutions will be formed? Is the institution of a public land bank or a special land bank institution, or a public land bank institution and besides that it is also organized activities of a special land bank institution, or a public land bank institution in which also organized activities of a special land bank institution?. In the countries of Sweden and Netherlands, the activities of land bank institutions are more general, while in the United States is more prominent precisely the activities of special land bank institutions, especially for industrial development, construction of public facilities, and construction of medium and simple housing. Although there are various objectives of the land bank institutions, but in general the priorities are laid between directing the development of land use and affecting land prices. The organizer of the land bank institution should be in the form of a public legal entity, since the activities of the land bank institution are included in the policy based on Article 33 paragraph (3) of the 1945 Constitution. In its implementation, it is necessary to think about the form of the legal entity, its authority, its working mechanism, its personnel / related institutions, and coordination with various agencies / other agencies. All this depends on the characteristics of the land bank institutions that will be established, whether to establish a public land bank institution and in addition there is a special land bank institution, or formed a public land bank institution in which also includes a special land bank institutions. Both of these options will result in the form of the implementing agency and the different organizational structures, with the record, of course the particular pattern created must base itself on a predetermined general pattern. The Land Bank Institution may obtain land through sale and purchase, land acquisition / removal of land rights, and other means such as exchange of land, and the acquisition of the consequences of land abandonment. Based on the assumption that in Indonesia there are possibilities to be held two kinds of activities of the land bank, then some alternative land acquisition that can be proposed is as follows: a. Against the activities of special land banks, the acquisition of land can be implemented through two ways, namely the procurement / revocation of land rights and sale and purchase. Land acquisition / revocation of land rights is applied in the event that the special land bank activity is intended for activities related to public interest as stipulated in Presidential Decree No. 65 of 2006 where such activities shall be carried out by the Government, owned by the Government, and not used for profit. To the activities of a special land bank which are devoted to matters outside the public interest, meaning that it shall not be carried out by the Government, not owned by the Government, and aimed at obtaining profit, so the way of land acquisition is made through buying and selling. b. Against the activities of public land bank institutions in accordance with their nature, their use cannot be determined at the time of the acquisition of land, then the acquisition should be done through buying and selling. Both in the first alternative or second alternative, if by way of sale or purchase or procurement of land is not reached an agreement, then it can be pursued the event of land rights revocation. How is the legality of land acquisition for public land bank institutions through the revocation of land rights, whereas its usefulness is not known beforehand, whether it will be used for the purpose of a general / nonprofit or nonpublic goals / profit? In this case it can be argued as follows: Firstly, revocation of land rights is not a primary goal, but rather a back up if other ways (in this case buying and selling) meet failure, because there is no agreement editor@iaeme.com

9 The Establishment of Land Bank Institutions for Strengthening the National Development Secondly, is the effort to revoke the land rights justified by the public land bank, that is; whether the activities of the public land bank is an activity that can be categorized as an activity that belongs to the category of public interest in a broad sense. If we hold on to Article 18 of the UUPA and Article 1 of Law Number 20 of 1961 concerning the Revocation of Rights on Land and the objects above it which adopt a general guideline approach to the definition of public interest, then the activities of public land banks whose main purpose is to regulate use of land and set the price of land that is indirectly intended for the benefit of the people and the interests of development, if the sale and purchase method of failure, it can be carried out the event of the revocation of land rights. As a comparative study, for example in Puerto Rico which is one of the United States territories in the case of the Commonwealth of Puerto Rico vs. Rosso, the Puerto Rico Suppreme Court on December 7, 1967 declared valid as a public purpose to acquire land even though its usefulness will be determined later. In the decree, among others, it is stated: "The Land Administration was authorized to acquire any land in the form of a public or private development. "(Sylvan Kamm, 1970). The decision of the Supreme court argued that the activities of the Puerto Rico land bank institution were public policies which aimed at providing services and achieving the welfare of the community (Fishman, Richard P and Robert D. Gross, 1972). It is important to note that the organizer of a land bank in Puerto Rico, the Puerto Rico Land Administration, formed in 1962 is an example of a multipurpose land bank institution and on a large scale. Other examples in the United States, for example in the Douglas Commission (National Commission on Urban Problems) which is also an example of a public land bank, are mentioned, among other things, that "In any situation, this requires that the government actually obtains land through purchase or eminent domain and that regulation be supplemented by compensation to private property owner. For the long term it may be proposed to obtain land by way of sale and purchase, both for the activities of public land banks and special land banks, as long as the problem of financing is not a constraint. To determine the sale price, experience in other countries can be used as comparison materials. In the Netherlands, land prices for land banks are determined on the basis of their current use as agricultural land, building value, cost of moving, resettlement costs, training / retraining fees, plus the costs of compensation as a result of the move. The calculation is entirely two to three times the value of agricultural land. Thus the basis of the calculation is the present value and not the expected value if the land is sold to a developer. (Strong, Ann L, 1979). In France, the Government reserves the right to purchase preemption rights by determining a price equal to the price of land within a year before the land is designated as a land object. However, in its development, market price is determined based on land price at the time of purchase. Both in the Netherlands and in France, the way taken is the sale and purchase and the revocation of rights is only used as a support effort if purchase and buy failed. In reality in both countries it is rarely followed by the revocation of land rights, as the experience of land banks in the United States. In the United States there are three alternative ways of payment: cash payments, installment payments, and rental purchases, which of course have advantages and disadvantages seen in terms of the land bank and landowners, and depending on the circumstances editor@iaeme.com

10 Firman Freaddy Busroh and Faisal Santiago For the implementation of a public land bank institution required greater costs than the special land bank institutions, because the scale of special land bank institutions are more limited, and it is not expected to play a lot in controlling land use and pressing land prices. The financing of the land bank institution depends on many factors, including the objectives, the structure of the land bank institution, the juridical restrictions, the strategy of the provision of land, the maturation and distribution of it and so on. In general, land bank institutions are financed through long-term loans of soft interest, selling shares to the public, in addition to other possibilities, such as utilizing funds from sources derived from land-based services and tax-generated sources in the field of land. In the operational phase, several issues to think about, among others, are: 1. how much land will be the object, 2. after the land is acquired, which areas of land are prioritized to be elected, 3. where did the land acquired and how it was acquired 4. how long is the maturation period of the land and how its utilization before the land is channeled, and 5. if the land is ready to be distributed, how much will be released and how the land distribution strategy. From the above description it appears that the implementation of the land bank institutions would not be simple, because of its multi-faceted and broad-impact. It means that if the institution is chosen as an alternative to the provision of land, the matters which include the administration of the implementation and the institutional structure, financing, and operations must be carefully designed. The form of the selected land bank institution is a special land bank institution, which is intended for the construction of housing and industrial estate. As it is known, the establishment of public land bank institutions because of its scale is more limited. Several points need to be addressed concerning with this idea. Firstly, since the activities of a land bank institution are included in the land policy based on Article 33 paragraph (3) of the 1945 Constitution, the operation of the land bank must be a public legal entity, in this case State-Owned Enterprises (BUMN) and / or Regional Owned Enterprises (BUMD) and its formation is regulated by Government Regulation. In addition, because the institution that functions as a manager of the land or whatever its name whose ideas are identical with the institution of the land bank or whatever the name whose idea is identical to the public land bank institution does not yet exist, then in the absence of a common provision applicable to the operation of the land bank institution, if this special land bank institution is about to be introduced, then all the principles underlying the institution of the land bank must be adhered to. If this trend happens, then there will be a special land bank institutionin Indonesia, and in the future perhaps later on there is also a bank of public land under any name, which because of its broad / general purpose, and large scale, the managers are on an agency within the office of the Minister of Agrarian Affairs and Spatial Planning / National Land Agency of the Republic of Indonesia. In relation to the governing body of a land bank institution, ie BUMN / BUMD, of course the question arises: can the private sector take part / participate in the implementation of the activities of the land bank institution? If it is recognized that the scope of authority and responsibility regarding the management of the land bank institution is so great as it concerns the interests of the public, there is no other answer except: it cannot. However, because the financing for the operation of the land bank institution is relatively large and thus relatively not easy for the government to obtain it, then certainly the strongly editor@iaeme.com

11 The Establishment of Land Bank Institutions for Strengthening the National Development capitalized private sector wants to participate with various motivations. Theoretically this can be done, but the government should be able to closely monitor the involvement of the private sector through, among other things: the determination of the purchase price of land by the private sector is the government, as well as the sale price by the private parties to those who need it, in this is a housing development company or industrial estate, also carried out by the government. This necessarily requires a reliable management and responsible executive. Given the limitations of the government, it can be questioned: can the government conduct the control? If the government does not yet have such a capability, then the voiceless voices of concern about collusion and the emergence of new land speculators through a land bank institution will probably come true. Secondly, in the provision of land, it should be emphasized that the planning must be in line with the Spatial Plan / Spatial Plan (RTRW) of the Second Level Region which has been determined to be a Regional Regulation. However, as it is known that not all Dati II (level II Area) have RTRW (Neighborhood Association and citizens Association), whereas this special land bank institution plays a role in providing land in accordance with the existing spatial plan, then channeling it in accordance with its designation. Fifth in the stage of land distribution, there are two strategies that can be selected, which will be sold or rented. As a comparative study in Amsterdam in general the rental price is determined between 4-6 percent of the purchase price and the cost of land ripening. If the land is used for public housing, then it is leased for 50 years with provisions to make periodic rental price adjustments. For other residential areas, rental rates differ between locations from one another and are calculated per square meter. Since 1915 the rental housing was not for industry and commerce since Rent can only be stopped if the City Council is of the opinion that it is done in the public interest. In Rotterdam, land destined for shelters covering land where standing buildings or private parks are sold, while roads and open spaces are still owned by the local government. The price of land is determined in order to break even. Beyond that, lands for port, industry and trade are leased for the long term with the right to renew unlimited period of time. Until 1970, the land for industry was sold, but then it was considered more profitable to lease. The rental price is reviewed every five years. In the United States, the majority of these lands are sold, as well as leased for the long term. In experience, we recommend both ways to do it. The profit of the lease is because public scrutiny persists in addition to the opportunity to renew the lease. In terms of tenants, should be given enough time for the value of reinvested investment. Rentals generally last for 40 years, but many are also given the possibility to buy. In the case of a lease it should be noted that the closer the lease term expires, there is a tendency that the lessee will leave the land and the building in a poorly maintained state. A mechanism is needed that can cope with this trend, so that even when the lease is over, the object of lease rights has no significant deterioration. In Stockholm which specifically led to his experience which is not always applicable in other countries, the advantages of renting land are: 1. allows monitoring of time and location of development 2. allowing the government to gain more value from the land 3. giving the possibility to control the land again if there is a desire to make changes in the use of the land. The specific characteristics of Stockholm have led to the fact that his experience may not always be applicable in other countries, because: editor@iaeme.com

12 Firman Freaddy Busroh and Faisal Santiago 1. history of land ownership by the Swedish state has taken root since the 19th century 2. neither Sweden nor Stockholm have experienced significant growth 3. in Sweden the authority of the government to exercise widespread oversight of the use of land is acceptable as a matter of course, and 4. limited growth. The acceptance of the government's role in oversight, and good administration, allowed Stockholm to revalue the land, raise land and levy its rent, so that the structure of the land directly reflects public policy. Learning from the experience of various countries, it would be both the alternative of a sale and purchase also lease can be used for land bank institutions in Indonesia. It should be noted that the selling price is calculated in such a way that the results can be used for continuous operation of the land bank institution, and it does not seem to buy cheap, expensive selling, which suggests that the land bank institution serves only as a land speculator. 5. CONCLUSION Policies relating to land bank institutions established as instruments to support development which hould be transparent because they are of public interest. The required land is partly from the community and the subsequent allocation is also intended for the benefit of society as a whole. At least for the activities of the land bank institution, the community should be informed about which areas will be developed and also about the types of use in the future as well as the development period. The concepts of land bank institutions include: 1. That the executor of urban land bank activities is directed as an effort to empower the land as the wealth of the Indonesian nation for the achievement of the people's welfare. It is intended that the land which is the asset of the nation should be utilized as fair and as optimal as possible in order to achieve the common goal of improving the welfare of society as a whole. 2. In order to realize the land institution, the role of the government is required, by formal juridical it has become the authority of the government to organize and organize allotment, use and supply of land and maintenance of the land. 3. The land bank institution can guarantee the availability of land by seeking the improvement of utilization and utilization of the land, and taking into account the physical condition of the land, as well as the ratio of the land distribution balance by aligning the interests of individuals, communities, governments and the private sector and always pay attention to the social functions of land in the context sustainable urban development. 4. In order that the activities of the land bank can achieve optimal land utilization and able to improve the welfare of the land owners, how to actively involve the land owners in the management of the land bank institution. The existence of land bodies can strengthen national development, this can be seen from the purpose of establishing a land bank, among others: 1. Ensure the realization of the objectives formulated in Article 33 paragraph (3) of the 1945 Constitution namely that the earth, water and natural resources contained therein are controlled by the State and used for the greatest prosperity of the people whose realization is a sustainable national development, equitable and equitable for the benefit of the masses; editor@iaeme.com

13 The Establishment of Land Bank Institutions for Strengthening the National Development 2. As an instrument to implement various land policies and support the development of the region efficiently and effectively; 3. Controlling the procurement, control and utilization of land in a fair and reasonable way in carrying out development. However, the implementation of the activities of the land bank institution can not proceed as expected without the support of valid and adequate land administration. Land tenure administration will facilitate negotiations with rights holders, in addition to avoiding unexpected demands later on. Another thing is the availability of records on land prices as well as adjusting rent. A multipurpose land administration system is required to support a multipurpose land policy required to support the land policy, including the activities of the land bank. In the end, inter-agency coordination related to the implementation of the activities of the land bank institution is very necessary, in addition to the support of reliable management capabilities, so that the purpose of holding the land bank institution can be achieved as much as possible. REFFERENCES [1] Faisal Santiago, 2014, Pengantar Ilmu Hukum, Cintya Press, Jakarta. [2] Faisal Santiago, Implementation of The Role of Notary Through Capital Market In The Era of Asean Economic Community. International Journal of Civil Engineering and Technology, 8(8), 2017, pp [3] Fishman, Richard P dan Robert D.Gross, 1972, Public Land Banking : A New Praxis for Urban Growth, Case Western Reserve Law Review, Vol.23, no. 4 Summer, [4] Flechner, Harvey L, 1974, Land Banking in the Control of urban Development, Praeger Publisher, New York. [5] Ganindha, Ranitya, Urgensi Pembentukan Kelembagaan Bank Tanah Sebagai Alternatif Penyediaan Tanah Bagi Masyarakat Untuk Kepentingan Umum, Jurnal Arena Hukum, 3, , Brawijaya University Malang, [6] [7] [8] [9] Kamm, Sylvan, Land Banking: Public Policy Alternatives and Dilemmas, the Urban Institute, Washington DC, [10] Sekarwati, Supraba. Gagasan Mengenai Pembentukan Bank Tanah (Land Bank) Dalam Rangka Pembangunan Perumahan dan Pemukiman Yang Berkelanjutan Di Indonesia, Doctoral Dissertation University of Padjajaran, Bandung, [11] Strong, Ann. L, Land Banking: European Reality, American Prospect, The Johns Hopkins University Press, Baltimore, [12] SW. Sumardjono, Maria, Kebijakan Pertanahan antara Regulasi dan Implementasi, Jakarta, Penerbit Buku Kompas [13] SW.Sumardjono, Maria, Tanah dalam Perspektif Hak Ekonomi Sosial dan Budaya, Jakarta, Penerbit Buku Kompas [14] Tarmizi, A Historical and Juridical Review of Status and Rights of Indigenous Peoples To Land In Deli Sultanate, North Sumatra, International Journal of Civil Engineering and Technology, 8(9), 2017, pp [15] G.Shravan Kumar, D.Naresh Kumar, A.V.Paramkusam and D Kalander Basha. International Journal of Mechanical Engineering and Technology, 8(7), 2017, pp editor@iaeme.com