The Reconstruction of Compensation Regulations for Owners of Shophouse Ownership Certificates Due to Market Development by the Government Based on Justice Values

Abstract

One of the main challenges in land acquisition is ensuring that the process is carried out transparently, fairly, and respects the rights of affected communities. In this regard, the role of regulation becomes very important. Land acquisition regulations must be able to create a legal framework that provides legal certainty for all parties involved, while prioritizing social justice. Competent appraisers must determine the value of land transparently, based on market data and the socio-economic conditions of the landowner. A more accurate and fair assessment will ensure that affected communities receive compensation that is in accordance with the value of their property and the social conditions they experience. This study uses a socio-legal approach, examining law both as written norms and in their real-world application. It focuses on how regulations address compensation for shophouse (SHM) owners affected by government market construction projects. Key laws reviewed include Law No. 2 of 2012, PP No. 71 of 2012, PP No. 39 of 2023, and the Job Creation Law. The findings show these laws have not fully resolved conflicts between the government and affected communities, particularly regarding fair compensation. Regulatory weaknesses highlight a gap between legal objectives and their implementation. A justice-based reconstruction of regulations is needed to ensure a more inclusive and fair compensation mechanism. This reconstruction must include changes to relevant articles such as Articles 33 and 35 of Law No. 2 of 2012, Article 68 Paragraph (1) and Article 85A of PP No. 39 of 2023, and Article 68 Paragraph (1), Article 69 Paragraph (2), and Article 85A in PP No. 39 of 2023. This research is expected to be a foundation for creating a land acquisition system that is fairer, more transparent, and oriented towards community welfare, while also supporting the acceleration of sustainable national development.