REGULATION OF HEAD OF THE NATIONAL LAND AGENCY OF THE REPUBLIC OF INDONESIA NUMBER 3 YEAR 2007 REGARDING

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1 REGULATION OF HEAD OF THE NATIONAL LAND AGENCY OF THE REPUBLIC OF INDONESIA NUMBER 3 YEAR 2007 REGARDING IMPLEMENTING PROVISION OF THE PRESIDENTIAL REGULATION NUMBER 36 OF 2005 REGARDING LAND PROCUREMENT FOR IMPLEMENTATION OF DEVELOPMENT FOR PUBLIC INTEREST AS AMENDED BY PRESIDENTIAL REGULATION NUMBER 65 OF 2006 REGARDING AMENDMENT TO PRESIDENTIAL REGULATION NUMBER 36 OF 2005 REGARDING LAND PROCUREMENT FOR IMPLEMENTATION OF DEVELOPMENT FOR PUBLIC INTEREST BY THE GRACE OF GOD ALMIGHTY HEAD OF THE NATIONAL LAND AGENCY OF THE REPUBLIC OF INDONESIA, Considering : that in order to implement provisions of Articles 2 and 22 of Presidential Regulation Number 36 of 2005 regarding land procurement for implementation of development for public interest as amended by Presidential Regulation Number 65 of 2006, it is deemed necessary to establish Regulation of Head of the National Land Agency regarding Implementing Provision of Presidential Regulation Number 36 of 2005 regarding Land Procurement for Implementation of Development for Public Interest As Amended by Presidential Regulation Number 65 of 2006 regarding Amendment Upon Presidential Regulation Number 36 of 2005 regarding Land Procurement for Implementation of Development for Public Interest; In view of : 1. Law Number 5 Year 1960 concerning Basic Principle Regulations on Land Matters (State Gazette of the Republic of Indonesia Year 1960 Number 104, Supplement to State Gazette of the Republic of Indonesia Number 2043); 2. Law Number 51 PRP Year 1960 concerning Prohibition for Use of Land without Permission from the Rightful Owner or Attorney (State Gazette of the Republic of Indonesia Year 1960 Number 158, Supplement to State Gazette of the Republic of Indonesia Number 2106); 3. Law Number 20 Year 1961 concerning Revoking of Rights on Land and Assets Thereon (State Gazette of the Republic of Indonesia Year 1961 Number 288, Supplement to State Gazette of the Republic of Indonesia Number 2324);

2 4. Law Number 17 Year 2003 concerning State Finance (State Gazette of Republic of Indonesia Year 2003 Number 47, Supplement to State Gazette Number 4286); 5. Law Number 1 Year 2004 concerning State Treasury (State Gazette of the Republic of Indonesia Year 2004 Number 5, Supplement to State Gazette of the Republic of Indonesia Number 4355); 6. Law Number 32 Year 2004 concerning Local Government (State Gazette of the Republic of Indonesia Year 2004 Number 125, Supplement to State Gazette of the Republic of Indonesia Number 4437) as amended by Law Number 8 Year 2005 concerning Determination of Government Regulation in Lieu of Law Number 3 Year 2005 concerning Amendment To Law Number 32 Year 2004 concerning Local Government which develop into Law (State Gazette of the Republic of Indonesia Year 2005 Number 108, Addendum to State Gazette of the Republic of Indonesia Number 4548); 7. Law Number 26 Year 2007 concerning Spatial Planning (State Gazette of the Republic of Indonesia Year 2007 Number 68, Supplement to State Gazette of the Republic of Indonesia Number 4725); 8. Government Regulation Number 40 Year 1996 concerning Rights of Development, Rights to Build, and Rights to Use of Land (State Gazette of the Republic of Indonesia Year 1996 Number 58, Supplement to State Gazette of the Republic of Indonesia Number 3645); 9. Government Regulation Number 24 Year 1997 concerning Land Registration (State Gazette of the Republic of Indonesia Year 1997 Number 28, Supplement to State Gazette of the Republic of Indonesia Number 2171); 10. Government Regulation Number 16 Year 2004 concerning Land Utilization Planning (State Gazette of the Republic of Indonesia Year 2004 Number 45, Supplement to State Gazette of the Republic of Indonesia Number 4385); 11. Presidential Regulation Number 36 Year 2005 Concerning Land Procurement for Implementation of Development for Public Interest As Amended by Presidential Regulation Number 65 Year 2006 Concerning Amendment To Presidential Regulation Number 36 Year 2005 Concerning Land Procurement for Implementation of Development for Public Interest; 12. Presidential Regulation Number 10 Year 2006 concerning National Land Agency; 13. Presidential Decree Number 34 Year 2003 concerning National Policy on Land Field;

3 HAS DECIDED To Implement: THE REGULATION OF HEAD OF NATIONAL LAND AGENCY OF THE REPUBLIC OF INDONESIA CONCERNING IMPLEMENTING PROVISION OF PRESIDENTIAL REGULATION NUMBER 36 YEAR 2005 CONCERNING LAND PROCUREMENT FOR IMPLEMENTATION OF DEVELOPMENT FOR PUBLIC INTEREST AS AMENDED BY PRESIDENTIAL REGULATION NUMBER 65 YEAR 2006 CONCERNING AMENDMENT TO PRESIDENTIAL REGULATION NUMBER 36 YEAR 2005 CONCERNING LAND PROCUREMENT FOR IMPLEMENTATION OF DEVELOPMENT FOR PUBLIC INTEREST CHAPTER I GENERAL PROVISIONS Article 1 In this regulation the following definitions apply: 1. Government Institution is State Institution, Department, Non Department Governmental Institution, Provincial Government or Regency/City Government. 2. Owner is the holders of rights, and/or the owner of building, and/or the owner of plants, and/or the owner of other object pertaining to land. 3. Land Price Appraisal Agency is a professional and an independent institution which has a proficiency and ability in land price assessment field. 4. Land Price Appraisal Team is a team that is established by Regent/Mayor Decree or Governor Decree of Special Capital City Region of Jakarta to asses the price of land, if there is no existing Land Price Appraisal Agency in such Regency/City or its surroundings. CHAPTER II PLANNING Article 2 (1) To obtain land for implementation of development for public interest, the government institution needing the land shall prepare a development plan proposal at least 1 (one) year before, which describes: a. purpose and aims of the development; b. place and location of the development; c. surface area needed; d. source of funding; e. environment feasibility analysis of development plan, including development impact with its prevention and management. (2) For the purpose of preparing the development plan proposal as mentioned in paragraph (1) letter b and letter c, the government institution needing the land may ask for consideration from National Land Agency of Republic of Indonesia.

4 Article 3 The development plan proposal as mentioned in Article 2 shall not be required in the event that the implementation of development for public interest is utilized for public safety facility and urgent disaster handling. CHAPTER III LOCATION DETERMINATION Article 4 Based on the development plan proposal as mentioned in Article 2, the government institution needing the land shall apply for location determination to the related Regent/Mayor or to Governor of Special Capital City Region of Jakarta with carbon copy to Head of Regency/City Land Office. Article 5 (1) After obtaining the approval of location determination as outlined in Article 4, the Regent/Mayor or Governor of Special Capital City Region of Jakarta shall conduct a study on compliance of development plan on the following aspects: a. spatial planning; b. land utilization planning; c. social economy; d. environment; and e. authorization, ownership, and use of land. (2) Implementation of study on compliance of development plan as mentioned in paragraph (1) shall be based on recommendation from related institution and Regency/City Land Office. (3) Based on such recommendation as mentioned in paragraph (2), the Regent/Mayor or Governor of Special Capital City Region of Jakarta shall issue a decree on location determination. (4) The Decree on location determination as mentioned in paragraph (3) shall be delivered to the government institution needing the land with carbon copy to the Regency/City Land Office and related institution. (5) The Decree on location determination as mentioned in paragraph (3) shall also remain in effect as a license of land acquisition for government institution needing the land. Article 6 (1) The Decree on location determination as mentioned in Article 5 paragraph (3) is given for period of: a. One year, for land procurement which needs surface area up to 25 hectares; b. Two years, for land procurement which needs surface area for more than 25 hectares to 50 hectares; c. Three years, for land procurement which needs surface area for more than 50 hectares; (2) In the event that the period of location determination as mentioned in paragraph (1) has been elapsed and the land acquisition process is not completed yet, however at least 75 % (seventy

5 five percent) of the development plan has been procured, the Regent/Mayor or Governor of Special Capital City Region of Jakarta is allowed to issue only 1 (one) renewal of location determination for a maximum period of 1 (one) year. Article 7 In the event of recommendation as mentioned in Article 5 paragraph (2) is not comply with Regional Spatial Layout Plan or existing regional or city spatial layout planning, and cannot be implemented in the location as intended in Article 2 paragraph (1), the Regent/Mayor or Governor of Special Capital City Region of Jakarta shall advise on other development location to the government institution needing the land. Article 8 After the acceptance of decree on location determination, the government institution needing the land in the maximum period of 14 (fourteen) days, is obliged to publish the development implementation planning for public interest to the public, in ways as follows: a. direct; and b. non direct, through print media, electronic media, or any other medias. Article 9 If the land location has been determined as development location for public interest, the third party that intends to acquire the said land is obliged to obtain a written consent from the Regent/Mayor or Governor of Special Capital City Region of Jakarta. Article 10 Written consent of land acquisition as mentioned in Article 9 shall not be required in the event that such land procurement is given by inheritance, by judge s decision which has a legal binding force or by rules of law. Article 11 (1) Proposal of location determination which located in two regions of regencies/cities or more will be submitted to the Governor. (2) Proposal of location determination which located in two regions of provinces or more will be submitted to the Head of National Land Agency of Republic of Indonesia. Article 12 Procedures of land determination as outlined in Article 4 to Article 7 are also remains in effect for location determination which is under the authorization of the Governor in compliance with to the environment in provincial level.

6 Article 13 Procedures of land determination as outlined in Article 4 to Article 7 are also remains in effect for location determination which is under the authorization of the Head of National Land Agency of Republic of Indonesia. CHAPTER IV PROCEDURES OF LAND PROCUREMENT Section I Land with Surface Area of More Than 1 (One) Hectare Paragraph 1 Establishment of Land Procurement Committee Article 14 (1) Land Procurement Committee in Regency/City is established by Regent/Mayor or Governor Decree of Special Capital City Region of Jakarta for land procurement for development implementation for public interest as outlined in Article 5 of Presidential Regulation Number 36 Year 2005 as amended by Presidential Regulation Number 65 Year 2006, (2) The membership of Land Procurement Committee consists of maximum 9 (nine) members with composition as follows: a. Local Secretary as the Chairman concurrently member; b. The official from the local government agency at the same level with the Second Echelon as the Vice Chairman concurrently member; c. Head of Regency/City Land Office or the appointed official as Secretary concurrently member; and d. Head of Service/Office/Body in Regency/City which is related with the land procurement implementation or the appointed official as member. (3) The duties of the Land Procurement Committee in Regency/City as mentioned in paragraph (1) are to: a. provide explanation or information to the public; b. conduct a research and inventory on land area, building and plants and other related objects to land, which its rights will be waived or delegated; c. conduct a research on legal status of land rights which are to be waived or delegated and its supporting documents; d. announce the result of research and inventory as mentioned in letter b and letter c; e. accept the result of land price assessment, and/or building, and/or plants and/or other relating objects to land from the Agency or Land Price Appraisal Team and official which responsible for assessing the building and/or plants and/or other related objects to land; f. conduct a deliberation with the owners and government institution needing the land in determining the form and/or the amount of indemnification; g. determine the amount of indemnification for the land rights which are to be waived or delegated;

7 h. witness the implementation of the delegation of indemnification to the owners; i. draft the minutes of the waiver or transfer of rights; j. administrate and documenting all files on land procurement and deliver such files to the government institution needing the land and to the Regency/City Land Office; and k. provide the issues along with its consideration for land procurement completion to the Regent/Mayor or Governor of Special Capital City Region of Jakarta in the event that the deliberation cannot be reached for the decision making. (4) Secretariat of Land Procurement Committee in Regency/City is domiciled in Regency/City Land Office. Article 15 (1) The Land Procurement Committee is established by the Governor Decree in the event the land which is needed for the development implementation for public interest is located in 2 (two) districts of Regencies/Cities within 1 (one) province. (2) Membership of Land Procurement Committee in Province as outlined in paragraph (1) consists of maximum 9 (nine) members with composition as follows: a. Local Secretary as Chairman concurrently member; b. Local Official in appointed Province which at the same level with Second Echelon as Vice Chairman concurrently member; c. Head of National Land Agency Province Office Area or appointed official as Secretary concurrently member; and d. Head of Service/Office/Body in Province which is related with land procurement implementation or appointed official as member. (3) The duties of Land Procurement Committee in Province as outlined in paragraph (1) are to: a. provide instruction, guidelines and development for land procurement implementation in Regency/City; b. coordinate and synchronize the land procurement implementation in Regency/City; c. provide a consideration to the Governor for the decision making of the form and/or amount of indemnification which proposed by the Regent/Mayor; and d. monitor and control the land procurement implementation in Regency/City. (4) Secretariat of Province Land Procurement Committee is domiciled in Provincial Office Area of National Land Agency. Article 16 (1) The National Land Procurement Committee is established by Minister of Home Affairs Decree in the event that the land which is needed for development implementation is located in 2 (two) provinces or more. (2) Membership of National Land Procurement Committee as outlined in paragraph (1) consists of maximum 9 (nine) members with composition as follows: a. Secretary General of the Department of Home Affairs as Chairman concurrently member;

8 b. The Echelon 1 Officer of the Department of Public Works as Vice Chairman concurrently member; c. The Echelon 1 Officer of the National Land Agency of the Republic of Indonesia as Secretary concurrently member; d. Director General/Minister Assistant/Deputy of Agency which is related with land procurement field as member; e. Related Governor or appointed officer in the same level as the Echelon II as member; and f. Related Regent/Mayor or appointed officer in the same level as the Echelon II as member. (3) The duties of National Land Procurement Committee as outlined in paragraph (1) are as follows: a. to provide instruction, guidance, and development for implementation of land procurement in Province and/or Regency/City; b. to coordinate and synchronize the implementation of land procurement in Province and/or Regency/City; c. to decide and/or determine Land Procurement Committee in Regency/City to conduct land procurement duty in each Regency/City; d. to provide considerations to Minister of Home Affairs and Head of National Land Agency of the Republic of Indonesia for decision making on settlement of form and/or amount of indemnification that submitted by Regent/Mayor or Governor; and e. to monitor and to control the land procurement implementation in Province and/or Regency/City. (4) Secretariat of National Land Procurement Committee is domiciled at the office of National Land Agency of Republic of Indonesia in Jakarta. Article 17 (1) With regard to the land procurement necessity for an integrated development for public interest in 1 (one) fiscal year or more (multi years), the implementation of the abovementioned is established and carried out only by 1 (one) Land Procurement Committee in Regency/City. (2) In the event that more than 1 (one) type of development activities for public interest are carried out in a Regency/City in 1 (one) fiscal year, the Regent/Mayor or Governor in Special Capital City Region of Jakarta shall establish 1 (one) or more Land Procurement Committee in Regency/City. Article 18 Land Procurement in a Regency/City or more within 1 (one) province or more is carried out by Land Procurement Committee in accordance with its duty and scope area, with regard to Article 15 paragraph (3) and Article 16 paragraph (3).

9 Paragraph 2 Information Article 19 (1) The Land Procurement Committee in Regency/City together with government institution needing the land shall carry out guidance in order to clarify the benefit, the aims and the purposes of such development to public and also in order to get willingness from owner. (2) Clarification is carried out at a given place specified in invitation letter made by Land Procurement Committee in Regency/City, and as guided by Land Procurement Committee in Regency/City during its performances. (3) In the event of clarification as mentioned in paragraph (1): a. accepted by public, it shall be continued with land procurement activity; b. is not accepted by public, Land Procurement Committee in Regency/City shall carry out reclarification to the public. (4) In the event that re-clarification as outlined in paragraph (3) letter b: a. is not accepted by 75% (seventy five percent) of the land owners, the government institution needing the land may propose an alternative location provided that the location can be allocated; b. is not accepted by the public, whereas the location cannot be allocated as stipulated in Article 39, Land Procurement Committee in Regency/City proposed to Regent/Mayor or Governor of Special Capital City Region of Jakarta to exercise the provisions in Law Number 20 Year 1961 concerning Revoking of Rights on Land and Assets Thereon. (5) The result of clarification performance is stipulated in Minutes of Clarification Result. Paragraph 3 Identification and Inventory Article 20 (1) In the event that development planning is accepted by public as outlined in Article 19 paragraph (3) letter a, Land Procurement Committee in Regency/City shall carried out an identification and an inventory on authority, utilization and ownership of land and/or building and/or plants and/or other objects related to land. (2) Identification and inventory as outlined in paragraph (1) consist of the following activities: a. border determination; b. measuring on land and/or building sector; c. mapping on land and/or building and land border sector; d. assessment on land and/or building border sector; e. listing on land usage and utilization; f. listing on land and/or building status;

10 g. listing on land and/or building and/or plants control and ownership; h. listing on land and/or building and/or plants control and ownership evidence; and i. other matters which are deemed necessary. Article 21 (1) In the event of the object that has identified and inventoried cannot be effectively carried out by Land Procurement Committee in Regency/City, then a working unit can be established to help the duty of Land Procurement Committee in Regency/City. (2) The working unit as mentioned in paragraph (1) is established and stipulated by Land Procurement Committee in Regency/City. (3) The result of identification and inventory which performed by working unit as mentioned in paragraph (1) shall be under the responsibility of Land Procurement Committee in Regency/City. Article 22 In the event that identification and inventory as mentioned in Article 20 paragraph (2) are conducted by the working unit as mentioned in Article 21 paragraph (1), then the nomination of working unit shall base in accordance with the skill of each member of working unit aligned with the duties which will be carried out. Article 23 (1) Identification and inventory result as mentioned in Article 20 paragraph (2) letter b and letter c is stipulated on Land Sector Map. (2) The result of identification and inventory performance as mentioned in Article 20 paragraph (2) from letter e to letter h is stipulated on List form which covers: a. The name of a person who possess the rights of land; b. Status of the Land and its documents; c. Land Surface Area; d. Ownership and/or land authority and/or building and/or plants and/or other object related to land; e. The utilization of land; f. Encumbrance on Rights of Land; and g. Other required information. (3) Map of Land Area and List as mentioned in paragraph (1) and paragraph (2) are announced by Land Procurement in Regency/City at the Town/Sub-District Office, Land Office Regency/City, through the website for 7 (seven) days, and/or through mass media at minimum 2 (two) publications to give an opportunity to any concerned party to submit an objection. (4) In the event that there is an objection, Land Procurement Committee in regency/city shall research and assess the objection, and if:

11 a. the objection is liable, the Land Procurement in Regency/City shall carry out correction in a proper manner; b. the objection is not liable, the Land Procurement in Regency/City shall continue the land procurement process. (5) If the objection as outlined in paragraph (4) contains ownership dispute, and/or authority/utility on land and/or building and/or plants and/or other object related to land, the Land Procurement Committee in regency/city shall make a deliberation to reach settlement. (6) In the event that the deliberation as mentioned in paragraph (5) does not reach any settlement, Land Procurement Committee in Regency/City shall propose to the parties to reach the settlement through judicial institution, and shall record the dispute/case on the Map of Land Area and List as outlined in paragraph (1) and paragraph (2). (7) After the dispute or case as outlined in paragraph (6) being recorded, the Land Procurement Committee in Regency/City shall continue the process of land procurement. Article 24 After the announcement period as mentioned in Article 23 paragraph (3) lapsed, the Map of Land Area and List as mentioned in Article 23 paragraph (1) and paragraph (2) are legalized by all members of the Land Procurement Committee in Regency/City, with acknowledgement from Head of Land Office in Regency/City, Head of Town/Sub-district and Head of District, and/or related Officer. Paragraph 4 Appointment of Appraisal Agency/Team on Land Price Article 25 (1) Land Procurement Committee in Regency/City shall appoint Land Price Appraisal Agency which established by Regent/Mayor or Governor of Special Capital City Region of Jakarta to assess the land price. (2) Land Price Appraisal Agency as mentioned in paragraph (1) shall mean an agency having obtained license from National Land Agency of the Republic of Indonesia. Article 26 (1) In the event that no Land Price Appraisal Agency, as mentioned in Article 25, is established in such Regency/City or its surroundings, the Regent/Mayor or Governor of Special Capital City Region of Jakarta shall establish a Land Price Appraisal Team. (2) The membership of Land Price Appraisal Team as mentioned in paragraph (1) consists of: a. Institution element on building and/or plant sector; b. Institution element from central Government on National Land sector;

12 c. Institution element on Land and Building Tax service; d. expert or experienced person as land appraiser; e. Academician that is capable on land price assessment and/or building and/or plants and/or other related objects on land. (3) If it considered necessary, the membership of Land Price Appraisal Team as mentioned in paragraph (2) can be enhanced with Non-Government Organization element. Paragraph 5 Assessment Article 27 Land price assessment which subject to development for public interest is carried out by Land Price Appraisal Agency or Land Price Appraisal Team. Article 28 (1) The land price assessment shall be performed by Land Price Appraisal Team, in the event that no Land Price Appraisal Agency is established as mentioned in Article 26 paragraph (1),. (2) Land Price Appraisal Team as outlined in paragraph (1) shall carry out the land price assessment in accordance with Tax Object Sale Value (TOSV) or Intrinsic Value with due observance to the current year, and in accordance with these following variables: a. location and land area; b. land status; c. land allocation; d. the compliance of land utility with regional spatial layout plan or existing regional/city layout planning; e. available facility and infrastructure; and f. other factors which influence the land price. Article 29 The price assessment of building and/or plants and/or other object related on land is carried out by Head of Service Office/Office/Institution in Regency/City that sectored the building and/or plant and/or other object related on land, with due observance to standard price that stipulated by the prevailing laws. Article 30 The result of assessment as outlined in Article 28 and Article 29 shall be submitted to Land Procurement Committee in Regency/City, to be utilized as a deliberation base between the Government Institution needing the land with the owners of the land.

13 Paragraph 6 Deliberation Article 31 (1) Land Procurement Committee in Regency/City shall determine the place and date of deliberation by inviting the Government Institution needing the land and the owners of the land to deliberate on: a. development planning for public interest in such location; and b. the form and amount of indemnification. (2) Invitation as mentioned in paragraph (1), must be submitted to government institution at latest 3 (three) days prior to the deliberation date commenced. (3) The deliberation on the form and amount of indemnification are subject to: a. mutual agreement; b. result of assessment as outlined in Article 30; and c. time period on the completion of development project. Article 32 (1) Generally, the deliberation is carried out directly and jointly between the Government Institution needing the land with the listed owners on Map of Land Area and List that has been ratified in accordance with Article 24. (2) The Chairman of Land Procurement Committee in Regency/City shall lead the deliberation. (3) In the absence of the Chairman of Land Procurement Committee in Regency/City as outlined in paragraph (2), then the Vice Chairman shall lead such deliberation. (4) In the event that land and/or building, and/or plants and/or other related object on land needed for the development: a. is/are becoming object of dispute in the Court, then the deliberation shall be carried out between the disputing parties; b. is/are jointly rights, then the deliberation shall be carried out with all the holder of rights; c. is/are donation properties, then the deliberation shall be carried out with the parties as stipulated in the prevailing laws on Donation Property. Article 33 (1) In the event that a direct, jointly and effective deliberation is not possible to be conducted due to the total of land owners, then the deliberation shall be carried out in stages. (2) In the event that the owner can not attend the direct and jointly deliberation as mentioned in Article 32 paragraph (1) or in stages as mentioned in paragraph (1), the owner may be represented by other party with a notaries power of attorney or a private deed with

14 acknowledgement by Head of Town/Head of Sub-district or anyone having the same level with Head of Town/Head of Sub-district and District Head. (3) The Proxy as outlined in paragraph (2), in the name of the Authorizer is authorized to take any decision to submit a proposal, an opinion, intention, and to accept or refuse refusal form and an amount of indemnifications offered to them, provided that such authorization is given under the said Power Of Attorney. (4) To protect the owner, the Proxy, as mentioned in paragraph (3), can only be given the said authority from 1 (one) owner. Article 34 The deliberation on development planning for public interest in the location as outlined in Article 31 paragraph (1) letter a is considered to have mutual agreement, if at least 75% (seventy five percent) of: a. surface land area needed for development is obtained; b. total of owners have approved the form and amount of indemnification. Article 35 (1) In the event that the deliberation on development planning for public interest in the location are less than 75% (seventy five percent), the Land Procurement Committee in Regency/City shall propose to the Government Institution needing the land to allocate to another location. (2) In the event that the development location cannot be allocated as mentioned in Article 39, the Land Procurement Committee in Regency/City shall continue the land procurement activity. Article 36 In the event that at least 25% (twenty five percent) of the total of land owners does not agree upon the form and /or amount of indemnifications, then the Land Procurement Committee in Regency/City shall make an effort to repeat the deliberation until mutual agreement is reached upon the form and amount of indemnifications. Article 37 (1) The deliberation to determine the form and amount of indemnifications is carried out in a period of time for a maximum of 120 (one hundred and twenty) days calendar from the first deliberation invitation date on development location that cannot be allocated as outlined in Article 39. (2) If the development location cannot be allocated due to spatial layout technical; and the development planning has already obtained approval from the public as outlined in Article 19 paragraph (3) letter a; and the agreement on development location has reached 75% (seventy five percent) as outlined in Article 34; and the period as outlined in paragraph (1) has been

15 lapsed, then the government institution needing the land shall provide the indemnifications to the owner and receive a Minutes on Indemnifications Delivery or Minutes on Indemnifications Delivery Offering made by the Land Procurement Committee in Regency/City. (3) If the owner still refuses the indemnifications delivery or does not accept the indemnifications delivery offering, then after 120 (one hundred and twenty) days, the Land Procurement Committee in Regency/City shall make the Minutes on Indemnifications Delivery. (4) If the owner as mentioned in paragraph (3) persists to refuse, based on Minutes as outlined in paragraph (2) and paragraph (3), Land Procurement Committee in Regency/City command government institution needing the land to deposit such indemnifications to the District Court of Justice having its jurisdiction covering the land location for development implementation. Article 38 The Land Procurement Committee in Regency/City shall make Minutes on the Result of Deliberation for the Implementation on Land Location for Public Purposes and Determination on Form and/or Amount Of Indemnifications, all of which shall be signed by each and every member of Land Procurement Committee in Regency/City, government institution needing the land and the owners. Paragraph 7 Development Location that cannot be allocated Article 39 Development location for public purposes cannot be allocated to other place or location due to technical spatial layout as specified in Article 19 paragraph (4) letter b, Article 35 paragraph (2) and Article 37 paragraph (1), if: a. according to historical, climatology, geography, geology and topography aspect cannot be allocated to another location; b. it is allocated to other location it would need more or enormous sacrifices, loss, and costs; c. the development planning is urgently needed and such location is considered as the best location compare to another location or there is no any other location available; and/or d. it does not carry out in such location, it may cause disaster which threaten public security and safety. Paragraph 8 Decisions of Land Procurement Committee in Regency/City Article 40 (1) Based on Minutes as mentioned in Article 37 paragraph (2) and paragraph (3) and Article 38, Land Procurement Committee in Regency/City shall issue a decision concerning form and/or amount of indemnifications and Nominative Indemnifications Payment List.

16 (2) Nominative List shall contain the owners name, the right that has been waived or transferred, the land/building width, the amount of plantation, accepted form and/or amount of indemnifications, deposit form and/or amount of indemnifications, owners and Head of Project for government institution needing the land, and also Land Procurement Committee in Regency/City as witness. (3) The Land Procurement Committee in Regency/City shall convey the decision as mentioned in paragraph (1) to the government institution needing the land, with carbon copy to Regent/Mayor or Governor for Special Capital City Region of Jakarta and to Head of Land Office in Regency/City. (4) In the event that the land needed for the development implementation is a government institution land, the Decision concerning the determination of form and/or amount of indemnifications shall be made in accordance with the procedures as stipulated in the prevailing laws of State Treasury. Article 41 (1) The owners that are objected with the decision on determination of form and/or amount of indemnifications issued by Land Procurement Committee in Regency/City as outlined in Article 40 paragraph (1), may file an objection along with the explanation of causes and reasons of such objection to Regent/Mayor or Governor or Minister of Home Affairs according to its authority within 14 (fourteen) days. (2) Regent/Mayor, according to its authority, shall give settlement decision on the owners objection as outlined in paragraph (1) within 30 (thirty) days. (3) Governor, according to its authority, shall give settlement decision on the owners objection as outlined in paragraph (1) in the event that land procurement for development implementation for public purposes in Special Capital City Region of Jakarta or land procurement locating in 2 (two) or more Regency/City in 1 (one) province within 30 (thirty) days. (4) Minister of Home Affairs, according to its authority, shall give settlement decision on the owners objection as outlined in paragraph (1) in the event that land procurement for development implementation for public purposes locating in 2 (two) or more province within 30 (thirty) days. (5) Regent/Mayor or Governor or Minister of Home Affairs according to its authority, before give Decision on determination of form and/or amount of indemnifications may request for consideration or opinion/wishes from: a. owner who files such objection or its proxy; b. land Procurement Committee in regency/city; and/or c. government institution needing the land.

17 (6) Decisions of Regent/Mayor or Governor or Minister of Home Affairs which ratify or change the form and/or amount of indemnifications shall be delivered to the owners who files the objection, and government institution which require land, and also Land Procurement Committee in Regency/City. (7) Decisions of Regent/Mayor or Governor or Minister of Home Affairs as outlined in paragraph (6) shall constitute as the basis for indemnifications payment for owner who files for objection. Article 42 In the event the settlement resolution conducted by Regent/Mayor or Governor or Minister of Home Affairs is still being rejected by owner, and on the other hand, the related development location cannot be allocated, Regent/Mayor or Governor or Minister of Home Affairs according to its authority proposed a settlement with the revocation of land rights pursuant to Law No 20 Year 1961 on The Revocations of The Rights of The Land and The Assets Thereon. Paragraph 9 Indemnifications Payment Article 43 (1) The persons having the right to receive indemnifications shall be: a. holders of land right or other rightful person in accordance with the relevant prevailing regulations; or; b. nadzir for donation land. (2) In terms of the right to use or right to build on the proprietary land right or on the right to manage, the persons having the rights to receive indemnifications shall be the owner of the proprietary land right or the person who have the right to manage. (3) The indemnification toward the building and/or plants and/or others object related with land which are existed on the right to use land or right to build land, whereby such rights are given by the holder of the proprietary land right or right to manage land, shall be remitted to the owner of the building and/or plants and/or other object related with land. Article 44 (1) According to the decision on form and/or amount of indemnification as mentioned in Article 40 paragraph (1) or Article 41 paragraph (6) and paragraph (7), Land Procurement Committee in Regency/City shall cause the institution needing the land to perform the indemnification payment to the party having the right of such indemnification as mentioned in Article 43 within the period of: a. Not later than 60 (sixty) days as of the date of such decision is ratified, provided that the indemnification is given in the form of money; or b. At any time which is agreed by and between the owner and the institution needing the land, provided that such indemnification is given in the form other than money.

18 (2) In the event of the indemnification is given in the form of money as mentioned in Paragraph (1) letter a, the Land Procurement Committee in Regency/City shall invite all the entitled parties to receive the indemnification payment as agreed, at determined time and place. (3) The invitation to receive the indemnification payment as mentioned in Paragraph (2) shall be accepted by the entitled party at the latest within 3 (three) days before the indemnification payment date. Article 45 Indemnification in the form of other than money as mentioned in Article 44 paragraph (1) letter b may be given in the form of: a. land and/or replacement building or resettlement, as required by the owner and agreed by government institution needing land; b. land and/or building and/or other facilities with the minimum value equal with released donation property, for donation property; c. recognition in the form of development of public facility or other beneficiary form for local community welfare, for ulayat land; or d. pursuant to the decision of the competent authority, for land possessed by Government Institution or Regional Government. Article 46 (1) Indemnification payment in the form of money shall be paid directly by government institution needing land to the entitled party as mentioned in Article 43, witnessed by Land Procurement Committee in Regency/City. (2) In the event the entitled party is represented by the other party, the power of attorney which becomes the basis of such representation, shall be made in the form of notary and witnessed by 2 (two) witness or, in terms of remote area, the power of attorney shall be made in writings form and acknowledged by Village Head/ Head of Sub-District or other party having the same level with Village Head/ Head of Sub-District and District Head. (3) To protect the interest of the entitled party, a proxy can only be given the said authority from 1 (one) entitled party of the indemnification payment. Article 47 (1) In the event the entitled party for such indemnification payment is not presented although they have received the invitation as mentioned in Article 44 Paragraph (2), then the Land Procurement Committee in Regency/City shall re-invite such party to receive such indemnification payment on a certain determined time.

19 (2) In the event of the entitled party for such indemnification payment is still not presented although 3 (three) invitations had been sent to them, they will be considered to accept without having any objection the agreed indemnification. (3) In the event of the absence of the entitled party as mention in Paragraph (2) is caused by illness, disaster or any other force majeure condition, then the government institution needing land along with the Land Procurement Committee in Regency/City shall deliver the indemnification directly to the owner at the place where the owner is domiciled. Paragraph 10 Deposit of Indemnification Article 48 (1) Land Procurement Committee in Regency/City shall cause the government institution needing the land to deposit the indemnification payment to the district court having its jurisdiction covering the land for the implementation of the development, in the event of: a. the existence of entitled party of the indemnification payment as mentioned in Article 43 Paragraph (1) is unaccountable; b. land, building, plant and/or other object related with land, are being the object of the dispute in court and still have not attained any final and binding court decision; c. is still becoming the object of ownership dispute and the disputing parties have not reached any settlement arrangement; and d. land, building, plant and/or other object which related with land, is in confiscation by competent authority. (2) To be able to deposit the indemnification as mentioned on paragraph (1) herein and Article 37 Paragraph (4), the government institution needing land shall file an application to the Chairman of the District Court having its jurisdiction covering the land for the implementation of the development. (3) The application as mentioned in paragraph (2) shall be filed along with : a. name of the entitled party whose receive the deposit payment; b. invitation on acceptance of indemnification payment as mentioned in Article 44 paragraph (2); and c. the document: 1) Minutes of Indemnification delivery as mentioned on Article 37 Paragraph (2) or Paragraph (3); 2) Minutes of Minutes on the Result of Deliberation Implementation on Land Location for Public Purposes and Minutes on the Result of Deliberation Implementation on Land Location for Public Purposes and Determination on Form and/or Amount Of Indemnifications as mentioned in Article 38; 3) Decision of Regent/Major or Governor of Minister of Home Affair as mention in Article 41 Paragraph (2), Paragraph (3), Paragraph (4) and Paragraph (7);

20 4) The statement and legal reason on the deposit of indemnification; and 5) Other letter which related with the deposit of indemnification. Paragraph 11 Relinquishment of Rights Article 49 At the same time with the payment and acceptance the indemnification in the form of money as mentioned in Article 44 Paragraph (1) letter a: a. government institution needing land shall prepare the receipt of payment on indemnification; b. the entitled party of the indemnification payment make the statement letter on the relinquishment/transfer of right on the land or the transfer of land and/or building and/or other material related with land; c. Land Procurement Committee in Regency/City shall prepare Minutes of Payment of Indemnification and Relinquishment of Rights on Land or Transfer of Land. Article 50 (1) In the event the agreed indemnification is in form other than money, save for the entitled party of the indemnification payment has already signed the agreement as mentioned on Article 44 Paragraph (1) letter b and Article 45, then it shall be continued with the signing of the statement letter on the relinquishment/transfer of right on the land or the transfer of land and/or building and/or other material related with land for the government institution needing land interest. (2) In the event of the land required for the implementation of the development is constitute as donation property, then the relinquishment/transfer for such purpose can be carry out after obtaining the written permit from the competent authority according to law and regulation on donation. Article 51 (1) In preparing the statement letter on the relinquishment/transfer of right on land, the entitled party of the indemnification shall deliver the original documents to the Regency/City Land Procurement Committee, as follows: a. Certificate right on land and/or originals the ownership and possession of land; b. Deed of other legal action related with concerned land; c. Other deed which related with related with concerned land; and d. Statement letter which notified by local village head/head of sub-district or whom with the same level which stated that such land as mentioned in letter a is true owned by the concerned. (2) If the originals as mentioned on paragraph (1) does not exist or lost, the entitled party of the indemnification shall attached:

21 a. Statement letter from the local police force; and/or b. Minutes of oath which made before the Head of Regency/Municipal Land Office for the registered land; and/or c. Statement letter which stated that the concerned land is truly owned by the entitled party and not in the dispute notified by local village head/head of sub-district for the registered land. (3) The entitled party of the indemnification is responsible for any loss and charge on authenticity of the document as mentioned on Paragraph (1) and (2). Article 52 According to the statement letter on the relinquishment/transfer of right on land as mentioned on Article 49, Article 50 and/or Determination of the District Court of Justice as mentioned on Article 48: a. Head of Regency/Municipal Land Office shall record the nullify of the right of the release or deliver in land book, certificate and other public registry of land; b. In the event of the land is uncertified, in originals of related land documentation shall be noted by Head of Regency/Municipal Land Office that the rights of such land has been transfer or relinquish, to be noted in Land Registration; c. In the event of the delivered land is uncertified, in administration book in related Village shall be noted and marked by local village head/head of sub-district which stated that: the right of such land has been transferred to the Government/Local Government for implementation of development of public interest. Article 53 (1) The land procurement cost shall be borne by the Government Institution needing the land, which is consists of the following: a. measurement and mapping on land; b. indemnification to the owners; c. Land Procurement Committee Regency/City, Province, and/or National; d. Land Price Appraisal Agency/Land Price Appraisal Team; e. administration on Rights Of Land until the issuance of certificate; f. escrow of indemnification if needed; g. separation of the owner s land residue; h. in the framework of guidance, coordination, evaluation, supervision and settlement of dispute; and i. others that considered necessary to support the implementation of duties of Land Procurement Committee in Regency/City, Province, and/or National. (2) The amount of cost for Land Procurement Committee as outlined in paragraph (1) letter c, shall be in accordance with the Ministry of Finance Decree as stipulated in Article 7A of Presidential Decree Number 36 Year 2005 as amended by Presidential Decree Number 65 Year 2006.

22 Section Two The Land with Surface Area Less Than 1 Hectare (Small Scale) Article 54 The land procurement for implementation of development for public interest with surface less than 1 (one) hectare, shall be directly implemented through sale and purchase, exchange or other alternatives which are agreed by the parties with or without the support from the Land Procurement Committee in Regency/City. Article 55 The direct land procurement as outlined in Article 54 is conducted in accordance with the status of land that will be released or delegated to the Government Institution needing the land. Article 56 (1) In the event that the land which is released has obtained certificate, then the renunciation of rights of land is conducted by the holder of rights of land by preparing a statement letter of renunciation of rights of land for interest of the Government Institution needing the land, and such government institution shall indemnify the holder of rights of land. (2) Implementation of renunciation of rights of land as outlined in paragraph (1) made and conducted before the Head of Regency/City Land Office or Land Deed Officer, or District Head as Land Deed Officer. (3) Indemnification by the government institution needing the land to the holder of rights of land shall be based on deliberation as outlined in Article 59. Article 57 (1) In the event that the land which is delegated to the Government Institution is not certificated, then land delegation is conducted by the owners of land by preparing the land ownership delegation letter for the interest of the Government Institution needing the land, such Government Institution shall indemnify the owner of the land. (2) The land delegation process as outlined in paragraph (1) shall be made and conducted before the Land Deed Officer in Regency/City. (3) Indemnification by government institution needing the land to the owner of land is based on deliberation as outlined in Article 59.