Land Prices Go Up, Location Remains Uncertain

KOMPAS/SUCIPTO

One of the burnt plots of land that has never been cultivated is for sale by the owner on Jl. Mahir-Mahar, Palangkaraya City, Central Kalimantan, on Wednesday (7/8/2019). Since the start of the discourse over relocating the capital city to Kalimantan, people have begun to take care of their land, despite it being burned. They mark their land to prevent it from being claimed by other people.

Palangkaraya city and Gunung Mas regency in Central Kalimantan are separated by a great distance from Kutai Kartanegara regency in East Kalimantan. However, these days, both regions are facing the same phenomenon: Rumors of capital relocation have led to land prices skyrocketing.

Lutfi Bachtiar has just sold his two hectares of land at Kilometer 47 near Tumbang Talaken village, Manuhing district, Gunung Mas regency. He earned Rp 400 million (US$28,151.66) from the sale.

“The buyer was from Jakarta. However, people from Surabaya and Bali also made offers. This is because the capital is about to be relocated,” said Lutfi on Thursday (8/8/2019). The buyer said that he wished to make an investment, as he was sure the capital would be relocated to Central Kalimantan.

The conviction was based on President Joko Widodo’s visit to Tumbang Talaken village in May this year.

In Tumbang Talaken, the President visited the forest that was among the options for the location of the new capital. Manuhing district head Sugiarto said that a piece of land measuring 20 meters by 30 meters located far from residential areas had been priced at Rp 10 million. As rumors of the capital relocation got louder, the price went up to Rp 40 million.

“I have urged locals not to haphazardly buy and sell land. We’re not even sure where the location of the new capital will be,” Sugiarto said. Manuhing is about 140 kilometers away from Palangkaraya.

The road heading there is mostly in poor condition, with oil palm plantations lining both sides of it. The area is not peat land.

“Euphoric” transactions of land also spread to Palangkaraya. Once-neglected lands are being cleared and marked. “I have abandoned this land for five years. I used to plant pineapples here,” Palangkaraya resident Marhat, 39, said. He had just obtained a certificate for his land on Jl. Mahir-Mahar.

Mahir had just put pegs on his 300-square-meter land. “The price is going up. This is why I took care of the certificate at the BPN [National Land Agency],” he said, adding that he offered the land, measuring 10 meters by 30 meters, for Rp 80 million. A nearby plot of land of a similar size was sold for Rp 40 million in 2017.

NikolakItak, 45, in Hiu Putih 20, also cleared his land. He paid two persons to spread chemicals on it to get rid of weeds. “I have no time to work on the land. I used to have oil palms here but it’s better to replace it with another plant. Even better to just sell it,” he said.

In Palangkaraya, land registration has increased, from 340 plots of land from January to July last year to 375 in the same period this year.

“This increase can be felt. This is not only about the capital relocation but also because of a free certificate program,” BPN Palangkaraya land rights subdivision head Sony Gusti Anasta said.

KOMPAS/SUCIPTO

A motorcyclist passes the Bukit Soeharto Grand Forest Park area in Samboja district, Kutai Kartanegara regency, East Kalimantan. As a conservation area, environmental impacts need to be taken into consideration if the area is chosen as the new location for the capital city because of the potential for landslides and erosion in the surrounding areas.

On land speculation, BPN Central Kalimantan head Pelopor said that the capital relocation rumors had also led to land conflicts. He refused to comment on this issue, other than affirming that many land cartels had emerged since the capital relocation rumors began to spread.

Central Kalimantan was among the candidates for the new capital. A 300,033-ha plot of land on the province’s “golden triangle”, comprising Palangkaraya city and Gunung Mas and Katingan regencies, is being prepared.

Central Kalimantan Governor Sugianto Sabran said that he was optimistic the capital would be relocated to Central Kalimantan. “We have made the preparations and, right now, the regions are working to solve problems,” he said.

Eyes on Bukit Soeharto

In East Kalimantan, investors are looking at the land around the Bukit Soeharto Forest Park in Samboja district, Kutai Kartanegara regency, named as another candidate in the hunt for the new capital.

There have been questions from people claiming to be investors from Jakarta on the price of land within the conservation zone. “They said they wanted to make office buildings. The forest park is a conservation zone that belongs to the state, so it is impossible,” Bukit Soeharto Forest Park management head Rusmadi said.

President Jokowi visited the area in May this year. Land transactions soon ensued.

Along Jl. Soekarno-Hatta, from Km 38 to Km 50, on Wednesday (7/8), Kompas found at least three signs offering land for sell. This is despite the land being located within the forest park and along the main road between Balikpapan and Samarinda that the President visited in May.

Over the telephone, one of the sellers, named Kus, said that he was in Makassar, South Sulawesi. He wished to sell his 1-ha plot of land for Rp 1.5 million per square meter. He said he first put up the sign in July this year. “By February next year, I may sell it for Rp 5 million per square meter. The land certificate is being arranged right now. This land is not part of the forest park,” Kus said. Upon checking at the sub-district office, it was found that the land was part of the forest park.

Six months ago, a mining company bought lands located outside the forest park for Rp 600 million per ha. “It was in Samboja and the price was quite high,” Bukit Merdeka subdistrict secretary Antonius K. Pakalla said.

Amid the hopes of gaining great fortunes from land, some are worried. “Be my guest, we’re happy as long as we’re not harmed,” said Baderun, 80, with shaky voice.

KOMPAS/DIONISIUS REYNALDO TRIWIBOWO

Motorcyclists pass a plot of land that is for sale in the Bukit Soeharto Grand Forest Park area in Samboja district, Kutai Kartanegara regency, East Kalimantan, at a high price in early July (8/7/2019), even though the area is included in the conservation area of the grand forest park.

The man from Tabalong, South Kalimantan, manages 15 ha of rubber plantation, some of which are planted with productive rubber. Having lived in Samboja since 1969, he has no certificates for the land he manages.