Legal Certainty of Land Banking Institutions: Theoretical and Current Challenges

Land banking is a form of land acquisition carried out by systematically acquiring land that has yet to be developed, abandoned land, or vacant land for further development and optimized use to benefit the community. The Government carries out this form of land acquisition to implement public land policies. This research uses doctrinal or normative legal research with a doctrinal approach and statutory regulations related to the Land Bank Concept and Institutions that are in accordance with the development of Indonesian Constitutional Law. Those legal material collected are analysed prescriptively. The result shows that the form of land banking is a special body (sui generis) that manages land with assets separate from state assets so that activities are more flexible, efficient, and effective. The appropriate Land Bank institutional model is in the form of a public service agency. As a separate institution from the ministry, the land bank's governance is based on general principles in the financial accounting system. Land asset management is directed at utilizing land in collaboration with other parties and distributing it to specified parties. Using land bank assets is to obtain income as capital accumulation. Meanwhile, the distribution of land assets is in the context of realizing a just economy through activities in the public interest, social interests, national interests, economic equality, land consolidation, and agrarian reform. Land banks must allocate part of their land assets for land reform.