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President Joko Widodo has signed a new regulation on funding mechanisms for land acquisition for national strategic projects (PSNs).

Presidential Regulation Number 66 of 2020 concerning Funding of Land Acquisition for Development in the Public Interest in the Context of National Strategic Project Implementation was signed by President Widodo on May 19, 2020 and enacted the same day.

With the promulgation of the new regulation, the previous regulation —Perpres No. 102/2016 — on land acquisition for national strategic projects stands revoked.

According to a copy of Perpres No. 6/2020, obtained from the website of the Ministry of State Secretariat here on Friday, the government found that Presidential Regulation No. 102/2016 was no longer in line with the development of funding needs for land acquisition for national strategic projects, and therefore, it needed to be replaced.

In Article 3 of the Perpres, the government has regulated that funding for land acquisition for development in public interest can be done through a financing budget, with the aim of establishing long-term funds or reserve funds, or both. The long-term funds or reserves are the accumulation of financing and the results of its management.

In the latest regulation, two funding mechanisms for land acquisition for PSNs have been laid down, namely, funding implemented by the Minister of Finance with a mechanism for direct compensation payments to entitled parties, or payments to business entities that have already carried out compensation payments.

Furthermore, Article 21 explains that for land acquisition for national strategic projects, funds of those business entities can be used that have obtained the necessary authority, based on agreements for and on behalf of ministries or institutions, within the framework of providing infrastructure for a public interest, in accordance with statutory provisions.

"In the event that there is a need for acceleration of land acquisition for the National Strategic Project, the Minister/Head may first use the funds of the Business Entity for Funding for Land Acquisition," Article 21 paragraph 1 of the Perpres states. (ANTARA)