Abstract
Indonesia Train Company or PT Kereta Api Indonesia (hereafter referred to as PT. KAI (Persero) is a State Owned Campanyor Badan Usaha Milik Negara (BUMN), which needs resources to carry out its business. To boost its capital, PT.KAI (Persero) leases its unused land located along the railways that have been closed due to ineffectiveness or the decrease in the operation. This lease carried out overeither certified or uncertified land. Although many of the trains in West Sumatra no longer work since independence, PT. KAI (Persero) still leases land. The lease is done in the form of lease quotation document whose format is solely determined by PT.KAI (Persero), similar to a standard contract. In such quotation,the state is leaser and the leaseholder is only obliged to pay for the lease and enjoy / use the land without a balanced agreement. This situation raises the following question: does the arrangement and status of right and lease of land by PT.KAI (Persero) to the public haveany legality / legal validity? The studydraws on socio-legal data, both primary and secondary obtained through library and field research. The research was conducted in Regional Division II of West Sumatra with land tenants / users of lands thatare deemed as assets by PT KAI (Persero). The site was chosen purposively. The results reveal that the leases of PT. KAI (Persero) arein accordancewith the provisions of the Ministerial Decree on State-Owned Company alongwith the Regulation on Railways. However, land leases by PT.KAI (Persero) basedon the Decision Letter from the Ministry of State Owned Company, which is not specifically intended to PT.KAI (Persero), is illigal.
Highlights
PT KeretaApi Indonesia (Persero) is a State Owned Company based on the law on State OwnedCompanies No 19/2003 (UUBUMN) in conjunction with Law No 23/2007(UUKA)
Under the Indonesian Law, the principle of land is controlled by the state as the highest organization, authorized to regulate, designate, use, provide, maintain the land, determine legal relationships and legal acts relating to land
The right to use the land is the right to manage and / or collect the proceeds of land directly controlled by the State or the property of another person, giving the authority and duties specified in the decision ofgrant by the competent authority or in agreement with the landowner, which is not a lease agreement or landmanagement agreement provided it does not conflict with the spirit and provisions of UUPA
Summary
PT KeretaApi Indonesia (Persero) is a State Owned Company based on the law on State OwnedCompanies No 19/2003 (UUBUMN) in conjunction with Law No 23/2007(UUKA). Under the Railway Law and some other decrees of the minister of State-Owned Company PT.KAI (Persero) declared itself entitled to use the land any profitable way it deems fit including lease and raising the price of land.
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