Land Consolidation | Frequently Asked Questions

February 11, 2021

According to BPN Head Regulation No. 4 of 1991, land consolidation is a land policy regarding the rearrangement of control and use as well as land acquisition efforts for development purposes. Then, when is land consolidation done? Is land consolidation a solution to urban spatial planning in Jakarta? Find the full explanation in this article.

One of the main problems in Jakarta is the availability of affordable housing. On the other hand, land use in Jakarta is not ideal because many areas are not optimally utilized. In fact, many residents even occupy inadequate housing in slums.

To solve the problem of housing needs, the government still leaves it to the market and builds subsidized flats, which are small compared to the housing needs. Meanwhile, to overcome the problem of slums in Jakarta, the government conductsslum upgrading which does not increase the number of dwellings. Slum upgr ading often uses eviction methods that are often rejected by the community. Whereas there is a win-win solution method to overcome both problems, namely vertical land consolidation.

Vertical land consolidation schemes allow communities to combine and organize several common lands for redevelopment by optimizing the accumulated land. This optimization through the implementation of vertical land consolidation will result in a greater number of dwellings on the same land. This can also be applied in slum locations so that the community does not need to be evicted but only needs to be organized.

What is vertical soil consolidation?

Simply put, land consolidation is the rearrangement of separate lands in terms of ownership and use to improve the quality of the environment by involving the active participation of the community. To increase the number of dwellings, this merging and rearrangement should be done by vertical land consolidation (flats or apartments). The division of flat units is determined based on the area of the old house or according to mutual agreement. With the new arrangement through the application of the vertical land consolidation concept, there will definitely be excess space that can be utilized for communal spaces, such as green open spaces in the form of parks, or trading places.

Why is vertical soil consolidation suitable for Jakarta?

Space in Jakarta is actually still loose vertically, meaning that there are not many tall buildings. Horizontal density will certainly not be able to accommodate many residents. So vertical land consolidation is needed to meet the very high housing needs.

How is the concept of vertical soil consolidation carried out?

The concept of vertical land consolidation is to combine several horizontal lands (built-up/vacant) to be built into flats by utilizing the maximum amount of buildable space.

This vertical land consolidation concept allows for the construction of more flats in Jakarta. The development of these flats should use the concept ofmixed-used and mixed income. These flats in Jakarta can have added value with various commercial activities and can also accommodate low-income workers closer to their workplace without having to travel far.

It is expected that with the increase in the number of flats in Jakarta, the number of available units will accommodate the demand for housing in Jakarta. If demand is accommodated (a lot of supply), automatically the price of housing in Jakarta will fall, thus overcoming the problem of slums.

Who is running the vertical land consolidation concept?

The concept of vertical land consolidation is carried out with cooperation between the community as the landowner and the government as the organizer. The community needs to know the concept, benefits, schemes, profit calculation proposals, compensation, regulations and development simulations. Therefore, it is important for the government to discuss with the community on a regular basis. The long process of land consolidation requires intensive communication between the government and the community so that many people want to participate.

What are the benefits of vertical soil consolidation?

The concept of land consolidation is beneficial to all parties/communities. The three main benefits are:

  1. More people have decent housing in terms of environment, building conditions and social conditions
  2. Affordable housing prices as more units can be built
  3. Increase asset value

By maximizing the built-up space on the land, it will increase the value of residential assets. Moreover, if there is still a lot of building area left, people can rent, sell or utilize it for commercial activities.

What are the critical success factors for vertical soil consolidation?

  1. Clear vertical land consolidation scheme
  2. Examples of successful vertical soil consolidation
  3. Explanation of the benefits of land consolidation as well as the incentives offered, which could be in the form of loan waivers for development or ease of increasing vertical building area.

To realize the three factors above, continuous socialization and communication from the government to the community about the implementation of the land consolidation concept is needed.

What makes vertical land consolidation unpopular in Jakarta?

The lack of socialization on the meaning and benefits of land consolidation has led many people to think that land consolidation means eviction. In addition, land consolidation regulations are not clear and detailed. The current land consolidation regulation does not yet explain the scheme, profit calculation proposal, compensation, regulation and development simulation. Without detailed land consolidation regulations and clear schemes, the government and the community will be reluctant to start the implementation of vertical land consolidation which actually has enormous potential as a solution to better urban spatial planning.

Are there any challenges to vertical land consolidation?

One of the challenges in implementing vertical land consolidation is the lack of an active role for the government to coordinate with communities if they are interested in consolidating. In addition, there is no financing incentive scheme for the community.

Meeting Jakarta's housing and urban spatial needs is an urgent need. Land consolidation is one of the things that can help Jakarta realize a better quality of life. Together, we build a better city.

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