Indonesia will inject IDR 20 trillion ($1.5 billion) in 2017 into its country’s asset management to fund land acquisition for national strategic projects. The fund injection is higher than that in 2016, which stood at IDR 16 trillion ($1.2 billion). In order to tackle the problem of land acquisition, the government has changed the scheme to fund land acquisition from capital expenditure to government investment funding through the State Asset Management Agency (LMAN). LMAN will plan the funding and the utilisation of land banks as well as pay compensation for land acquisition to support the government’s infrastructure development programmes. As part of the new scheme, two public bodies – Toll Road Regulatory Agency and the Public Works and Public Housing Ministry – signed an MoU with 23 toll road companies.
