Land acquisition law also covers oil and gas infrastructure

The central and local governments must be able to guarantee the availability of land to be used for the development of oil and gas infrastructure because they are among projects categorized as public facilities as stipulated in the newly introduced acquisition law for public development.

The article 10 in the Law No. 2/2012 on the acquisition of law for public development clearly classifies different criteria of land to be used for public development. The land for public development for example includes land for the development of oil and gas, geothermal, national defense and security facilities, public roads, toll roads, tunnel, railway, dams, irrigation, clean water pipeline, hospitals owned by local or central governments.

Under the new law, land owners are obliged to transfer the ownership of their land to be used for public facilities, but they should, at the same time, receive a fair compensation from the buyers. The price of the land should be determined amicably by land owners and appointed team for the project or by the court.

The land for public facilities as stipulated in the article 10 of the new law should be acquired by the government or local governments, which would consequently become the owner of the properties.

If the land is acquired by state owned company for the development of public facilities, the properties will be consequently owned by the state as ownner of the company.

Editing by David Mustakim