Land Acquisition, Compensation Utilization, and Community Welfare: A Case Study of Danu Kerthi Dam

This study examines the conditions and factors that explain the effects of land acquisition on welfare and why compensation may contribute to economic sustainability. Most previous studies have focused on conflicts during the compensation phase rather than on livelihood trajectories after land acquisition. This descriptive qualitative study applied snowball sampling involving 18 informants from 80 entitled parties in Sawan and Bebetin Villages, Buleleng Regency. The primary data were collected through structured interviews and questionnaires, while the secondary data were obtained from land acquisition documents and welfare indicators from the Central Statistics Agency. The findings show that the assessment of physical and non-physical losses resulted in proportional compensation and that its success was largely determined by three conditions: credible governance involving the village government, meaningful participation through the calculation of customary losses, and socio-cultural sensitivity. Most recipients used their compensation for education, asset acquisition, and business development, which explains why the welfare indicators show relatively good conditions. However, some farmers remain vulnerable during the transition to long-term investment because perennial crops are not yet productive and prices are volatile. In conclusion, fair compensation based on the principle of indemnity can strengthen socioeconomic resilience if supported by post-payment assistance based on the Global Gotong Royong principles; otherwise, the sustainability of welfare is not automatically guaranteed.