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The amount of compensation is final and binding: Legal Overview and Assessment Process
Admin Equator Group

Admin Equator Group

26 Juli 2024

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The amount of compensation is final and binding: Legal Overview and Assessment Process

Understanding Compensation Values in Land Acquisition for Public Interest

In the context of land acquisition for public interest, it is essential to understand that the compensation value determined is final and binding. This is regulated by Government Regulation No. 19 of 2021, Article 69, paragraph (3), and Minister of Agrarian and Spatial Planning/Head of the National Land Agency (ATR/BPN) Regulation No. 19 of 2021, Article 111, paragraph (3). These provisions state that the decision regarding the compensation value cannot be changed except through judicial mechanisms. The relevant authorities are obligated to pay the determined value, and the entitled parties must accept it. Any objections must be filed through a lawsuit in court.

Valuation by Appraisers or Public Appraisers

The compensation valuation process is carried out by competent appraisers or public appraisers. This valuation includes various elements related to the land being acquired, namely:

  • Land
  • Space above and below the land
  • Buildings (structures)
  • Plants
  • Objects related to the land
  • Other assessable losses

Valuation Process

Appraisers or public appraisers conduct the valuation after receiving planning documents, a nominative list, and land maps from the head of the land acquisition committee, as recorded in an official report. This process must be completed within 30 (thirty) days from the signing of the official report. During their task, appraisers may request information and/or supporting data from relevant institutions to ensure the accuracy of the compensation valuation for each parcel of land.

Compensation Value

The compensation value determined by appraisers or public appraisers is the value at the time of the announcement of the location designation for public interest, considering the waiting period for compensation payment. This value is a single value for each parcel of land.

Final and Binding

The results of the compensation valuation by appraisers are final and binding. Appraisers submit the results of this valuation to the head of the land acquisition committee through an official report of the valuation results. The established compensation value is then used as the basis for discussions on determining the form of compensation.

Therefore, the established compensation value is final and must be adhered to by all relevant parties, both the institutions required to make payments and the entitled parties. Objections to this value can only be resolved through the court. This ensures that the land acquisition process is conducted orderly and in accordance with the applicable legal provisions, providing legal certainty for all parties involved.

Conclusion

In implementing land acquisition for public interest, the provisions regarding the finality and binding nature of compensation values are crucial aspects that all parties must understand. The valuation process conducted by appraisers or public appraisers aims to ensure that the determined compensation value reflects a fair and equitable value, considering all relevant aspects. By following the established procedures, it is hoped that land acquisition can proceed more effectively and efficiently, avoiding potential conflicts in the future.

 

Equator Group