Land Bank Expected To Start Operation In 2016

Jakarta (Antara Bali) - A land Bank, which will facilitate provision of land for infrastructure projects in Indonesia is expected to be operational early 2016.

The state-owned land bank will start operation with assets  valued at Rp6.8 trillion.

The government is still calculating a number of schemes of providing land  and potential increase in asset from year to year, State Asset Director General Vincentius Sonny Loho told ANTARA news agency here on Thursday.

"The feasibility study on the Land Bank would begin in November, 2015," Vincentius said.

The Land Bank would take inventory of lands owned by the state and based on the last calculation it already has an inventory of Rp6.8 trillion worth of empty lands and unused  buildings.

In addition to be responsible for land data , the Land Bank would function to secure lands for infrastructure projects.

Such banks have been in operation in a number of other countries such as the Netherlands, Switzerland  and Sweden.

Land Bank abroad also serve as land appraisers to prevent involvement of speculators.

In addition, Land Bank could also function as land manager responsible for the revitalization of land .

The Land Bank would be under the Public Service Body (BLU)of Asset Management at the Finance Ministry.

The Commission XI of the Parliament on Thursday gave approval to the Finance Ministry for the disbursement of Rp1.5 trillion to finance the BLU of Asset Management. (WDY)