Digitization of the national land information system

business overview

Country (trade office) Indonesia (Jakarta)
Project name Digitization of the national land information system
Business Category Transportation/Logistics
Overseas ordering company Indonesia Ministry of Agriculture, Forestry and Space Planning
project schedule (Q2021 3) Bidding Notice
(Q2022 2) Pre-screening of bidding qualifications
(Q2022 4) Selected as a successful bidder
(Q2021 4) Signing of the agreement
(Q2022 4) Financial close
(Q2023 1) Start
financing Official Development Assistance (ODA)
Scale $3 billion
Project period 2021-2036

Job Description

Main Content
  • background
    -More than half of Indonesia's land is currently unregistered, and even the land information registered so far is not secure due to the inconsistent management of land information among government ministries.
  • The goal of the Land Administration (BPN) is to digitize land information by 2025 to improve the cadastral management system and issue an electronic certificate of land registration right.
  • project scope
    -Private partners are responsible for land information system, DC and DRC infrastructure improvement and maintenance, hardware procurement, consulting service, digitalization, and land certificate verification system establishment.
    AP (Availability Payment) method in which the government pays 14% of the return on investment as fixed income for 15 years
Reason for selection
  • As a project proposed by the government, the government will actively support from obtaining relevant licenses, signing MOUs with related ministries, and managing risks due to future policy changes, making it a relatively stable project.
  • In the second half of 2019, Korea Land Information Corporation (LX) conducted consulting on project feasibility.

entry plan

opportunity factor
  • Korea already has experience in smart cadastral map project and possesses high technology, which is advantageous for project preoccupation.
Threats
  • Among the achievements of land informatization that have already been established, there are situations in which data are inconsistent due to data errors such as overlapping land, voids, and lack of location accuracy.
  • To improve the national land registration rate, it is necessary to simplify the land registration procedure and registration requirements, to expand the land information system, and to reorganize relevant laws and regulations.
Other notes
  • Participation in the bidding of the World Bank
  • Participation in G2G programs such as EDCF/KOICA