TEMPO.CO, Jakarta - The Land and Spatial Planning Ministry plans to establish a land bank in an effort to counter the uncontrollable increase of land prices. Land and Spatial Planning Minister Sofyan Djalil said that currently, land prices inflation is very high.
The condition will affect low-income people's access to land and housing. "If [lands] are controlled by the land bank, prices can be controlled," Sofyan said on Wednesday, December 14, 2016.
Sofyan said that assets managed by the land bank will allow land prices to reduce because the government will apply a subsidy system. "For example, we will buy neglected land with low cost," Sofyan said.
Sofyan expected that with the presence of the land bank, land prices will no longer determined by the market. Sofyan added that land use can also be optimized, either for industrial purposes, housing, or infrastructure development.
Sofyan underlined that the land bank will manage lands for public interest by employing competitive mechanism. "We will find the balance between public interest and driving investment," Sofyan said.
GHOIDA RAHMAH
