The most crucial stage of infrastructure development in Indonesia, especially PPP, is the land acquisition. There are many problems involved there that usually contribute to the project cost overrun and make the project less feasible.
Yesterday, I joined a meeting with West Java Planning Agency whom led directly by Prof. Deny Juanda. He proposed a break trough idea for land acquisition mechanism. The idea is equity participation from landowners. The land will not be sold to the developer (via Government), but the value will be converted into landowner’s share in the project SPV.
We can name this mechanism as a public participation scheme, who treats the people as a subject of development. Of course, this scheme is better than public empowerment one.
Unfortunately, this good idea might need more than 10 years to be real. The adequate time for paradigm shift in Indonesia….