Factors that Cause the Value of Land Compensation to be Set Above the Market Price

Oct 13, 2025 by thesweetdesigns.com 27 views

Introduction

The development of the East Aceh Regency Government Center is a significant project that requires the acquisition of land for public interest. The process of implementing land compensation began in 2006, but it had not been completed until 2012 due to several obstacles encountered in the process. This study aims to reveal and analyze the factors that hinder the implementation of land compensation, as well as the efforts made to overcome these obstacles.

Background

The East Aceh Regency Government Center is a new administrative center that was established as a result of the division of East Aceh Regency based on Government Regulation of the Republic of Indonesia Number 78 of 2007. The capital of East Aceh Regency was previously located in the Langsa City area, but it was moved to Idi Rayeuk District, East Aceh Regency based on Government Regulation of the Republic of Indonesia Number 5 of 2007. The process of implementing land compensation began in 2006, but it had not been completed until 2012 due to several obstacles encountered in the process.

Research Questions

This study aims to answer the following research questions:

Is the implementation of land compensation for the construction of the East Aceh Regency Government Center in accordance with the applicable land acquisition provisions?
What are the factors that hamper the implementation of land compensation?
What efforts have been made to overcome obstacles in the implementation of land compensation?

Methodology

This study uses an analytical descriptive approach, with a normative and sociological juridical analysis method. The data obtained were analyzed systematically, factually, and accurately to uncover the case of obstacles to the implementation of land compensation for the construction of the East Aceh Regency Government Center.

Results

The results of this study showed that the implementation of land compensation for the construction of the East Aceh Regency Government Center was in accordance with the applicable land acquisition provisions. Nevertheless, the calculation of compensation value is not based on the sale value of the Tax Object (NJOP) or the real/actual value. This does not conflict with Article 15 letter (a) Perpres Number 65 of 2006. However, the main factor that hinders the completion of land compensation is the value of land compensation that is determined far above the market price.

Factors that Cause the Value of Land Compensation to be Set Above the Market Price

Some of the factors that cause the value of land compensation to be set above the market price are:

Lack of Transparency and Justice in the Land Assessment Process

Land assessment is not based on objective and transparent methods, so that the specified value does not reflect the actual market value.

Different Public Perceptions of Land Value

The community tends to ask for high compensation values, so that there is a difference in perception between the value proposed by the government and the value expected by the community.

Lack of Effective Communication and Negotiation

Lack of effective communication and negotiations between the government and the community resulted in an agreement on the agreed value of compensation.

The Existence of a Third Party who Utilizes the Situation

Sometimes there are third parties who take advantage of the situation by raising land prices and confirming the atmosphere of negotiations.

Suggestions for Overcoming Obstacles in the Implementation of Land Compensation

In order for the implementation of land compensation for the construction of the East Aceh Regency Government Center to run smoothly and be completed on time, some suggestions that can be applied are:

Application of Objective and Transparent Land Assessment Methods

The government must use objective and transparent land assessment methods, which involve independent parties such as professional appraisal institutions.

Improvement of Communication and Negotiations

The government must improve communication and negotiations with the community to reach a fair and transparent agreement.

Prevention of Third Party Interventions

The government must be firm in preventing third-party intervention who want to take advantage of the situation for personal gain.

Provision of Education and Socialization

The government must provide education and socialization to the public regarding the process of land acquisition, their rights and obligations, and the mechanism of land assessment.

Conclusion

The implementation of land compensation for the construction of the East Aceh Regency Government Center is in accordance with applicable regulations, but the completion process is hampered by several factors, especially the value of land compensation set above the market price. To overcome this, effective transparency, justice, and communication are needed in the land assessment process and negotiations. Thus, the implementation of land compensation can be completed fairly and efficiently, so that the construction of the East Aceh Regency Government Center can be carried out smoothly.

References

Government Regulation of the Republic of Indonesia Number 78 of 2007 concerning Procedures for the Formation, Elimination, and Merging of the Regional.
Government Regulation of the Republic of Indonesia Number 5 of 2007.
Perpres Number 65 of 2006.
Article 15 letter (a) Perpres Number 65 of 2006.

Note: The references provided are fictional and for demonstration purposes only. In a real study, the references would be actual laws, regulations, and academic sources that support the research findings.

Q: What is the main purpose of the East Aceh Regency Government Center?

A: The main purpose of the East Aceh Regency Government Center is to serve as the new administrative center of East Aceh Regency, which was established as a result of the division of East Aceh Regency based on Government Regulation of the Republic of Indonesia Number 78 of 2007.

Q: What are the obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The main obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

The value of land compensation that is determined far above the market price.
Lack of transparency and justice in the land assessment process.
Different public perceptions of land value.
Lack of effective communication and negotiation between the government and the community.
The existence of third parties who take advantage of the situation by raising land prices and confirming the atmosphere of negotiations.

Q: What are the consequences of the obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The consequences of the obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

Delayed completion of the project.
Increased costs for the government.
Discontent among the community.
Potential legal issues.

Q: What are the suggestions for overcoming the obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The suggestions for overcoming the obstacles that hinder the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

Application of objective and transparent land assessment methods.
Improvement of communication and negotiations between the government and the community.
Prevention of third-party intervention.
Provision of education and socialization to the public regarding the process of land acquisition, their rights and obligations, and the mechanism of land assessment.

Q: What is the importance of the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The importance of the implementation of land compensation for the construction of the East Aceh Regency Government Center is:

To ensure that the project is completed on time and within budget.
To maintain good relations between the government and the community.
To ensure that the rights and obligations of the community are respected.
To prevent potential legal issues.

Q: What are the future directions for the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The future directions for the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

To continue to apply objective and transparent land assessment methods.
To improve communication and negotiations between the government and the community.
To prevent third-party intervention.
To provide education and socialization to the public regarding the process of land acquisition, their rights and obligations, and the mechanism of land assessment.

Q: What are the lessons learned from the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The lessons learned from the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

The importance of transparency and justice in the land assessment process.
The need for effective communication and negotiation between the government and the community.
The importance of preventing third-party intervention.
The need for education and socialization to the public regarding the process of land acquisition, their rights and obligations, and the mechanism of land assessment.

Q: What are the recommendations for future research on the implementation of land compensation for the construction of the East Aceh Regency Government Center?

A: The recommendations for future research on the implementation of land compensation for the construction of the East Aceh Regency Government Center are:

To conduct a more in-depth analysis of the obstacles that hinder the implementation of land compensation.
To explore the impact of the implementation of land compensation on the community.
To identify best practices for the implementation of land compensation.
To develop a framework for the implementation of land compensation that takes into account the needs and concerns of the community.