Legal Transplantation of Land Bank in Indonesia: A Comparative Study of Land Bank Policy from Leading Country

Abstract

Indonesia is facing a severe housing crisis, compounded by rising property prices resulting from limited urban space. Data analysis provided by the Ministry of Public Works and Public Housing (PUPR) highlights a significant backlog in residential ownership, totaling 12.75 million units. Unfortunately, only 59.5% of these units meet the necessary standards for habitability. Mass land acquisition practices by a select few were observed. The potential increase in land prices due to speculative solid activities presents a pressing issue, given the economic and social impacts it generates. However, implementing the Land Bank for this problem still faces various problems. This paper aims to develop an optimal policy for enacting the land bank concept through legal transplantation between the United States and Indonesia. This study employs a conceptual and comparative methodology, examining land bank policies in both Indonesia and the United States. Comparative analysis was carried out to assess the similarities and differences between the two countries' approaches. Data collection involved a comprehensive review of literature pertaining to diverse land bank regulations. Based on the research findings, Indonesia can enhance its land bank management by adopting principles from the United States' land bank framework. The US model features adaptable non-profit organizations benefiting from well-defined state-level regulations. These entities concentrate on community revitalization efforts and frequently secure federal funding, streamlining legal procedures. Establishing land banks at the local level promotes community involvement. Indonesia should contemplate enacting specialized legislation, fostering collaborative partnerships, pursuing international grants, and streamlining bureaucratic processes to optimize the effectiveness of its land bank initiatives.