LEASING OF LAND BY INDONESIAN RAILWAYS – LEGAL OR NOT?

Yulia Mirwati, YM (2017) LEASING OF LAND BY INDONESIAN RAILWAYS – LEGAL OR NOT? International Journal of Business, Economics and Law, 12 (4). pp. 33-38. ISSN 2289-1552

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Abstract

PT Kereta Api Indonesia (Persero) (Indonesian Railways) is a state-owned enterprise, which carries out its business by requiring lands. In order to optimize the business, Indonesian Railways leases the land to the people along the lines which are not used for transportation, either because the consideration that they are not effective and should be closed, diverted, or because the train does not operate anymore. The leasing of this land is done to the land that is already certificated and not certificated. Since the independence of Indonesia, many railways in West Sumatera no longer work, but Indonesian Railways keeps renting the lands. The leasing is implemented in the form of a letter of lease whose format is determined by the Indonesian Railways itself, similar to a standard contract. In the lease, there is an impression that the State leases, and the tenant has only the obligation to pay the rent and enjoy the use of such land, not having the concept of agreement that is balanced (Article 1320 jo 1338 of the Civil Code). Based on that, the problem formulated is: How are the regulation and status of right and land leasing by Indonesian Railways to the people – legal or not? The research methods used are normative research and juridical empirical research, with data collection techniques through the study of literature (library research) coupled with secondary data of field research. Location of the research is conducted in the Regional Division II West Sumatera and the tenant communities of lands which by Indonesian Railways are considered assets. Selection of location is done purposefully. Based on the results of the research, it is obtained that Indonesian Railways is conducting the leasing that bases on Decree of Minister of State-Owned Enterprises. Leasing of land by Indonesian Railways is apparently done with the basis of the Decree of Minister of State-Owned Companies, not specifically intended to Indonesian Railways. Key Words: Leasing of Land, State-Owned Enterprise, Indonesian Railways

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