Feb

18

Infrastructure Development and Land Boundary Changes – What Property Owners Need to Know

Infrastructure development, such as the construction of roads, highways, railways, or urban public facilities, often brings significant benefits to communities, including improved accessibility, economic growth, and increased property values. However, such development can also lead to changes in the physical boundaries of private and corporate land, raising legal, administrative, and practical concerns for property owners.

Importantly, these boundary changes are not limited to land owned under individual freehold rights. They can also affect other land rights, such as Hak Guna Bangunan (Right to Build), whether held by individuals or corporate entities. Consequently, both individual and corporate landowners must be aware of the potential implications and take appropriate legal measures to protect their rights.

Physical boundary changes may involve partial land acquisition, realignment of property lines, or adjustments to plot areas due to road expansions, public utility installations, or other infrastructure projects. For property owners, these changes affect not only the physical land but also ownership rights, land use, and future development potential.

From a legal perspective, infrastructure-related boundary changes must comply with existing land and property laws. In Indonesia, for example, land acquisition for public purposes is regulated under Law No. 2 of 2012 on Land Acquisition for Development in the Public Interest. This law provides that landowners are entitled to fair compensation for affected portions of land and that all boundary modifications must be legally recognized. Accurate documentation, including updated land certificates and cadastral records, is essential to maintain the clarity and enforceability of ownership rights after such changes.

Boundary adjustments may also trigger disputes, particularly when physical changes are not accompanied by formal legal procedures or clear communication with affected owners. In some cases, disagreements arise over the extent of the land affected, valuation of compensation, or interpretation of property boundaries. Such conflicts can delay projects, create financial uncertainty, and increase the risk of litigation for both private owners and developers.

Property owners can mitigate these risks by taking proactive measures. Engaging in thorough due diligence, obtaining accurate cadastral surveys, and ensuring that any boundary changes are formally recorded with the relevant land office are crucial steps. Early legal guidance helps ensure fair compensation, clarifies ownership rights, and minimizes potential disputes.

Developers and public authorities also have a responsibility to maintain transparency and comply with statutory procedures. Clear communication with affected landowners, accurate surveys, and fair compensation practices can reduce legal challenges, facilitate smoother project execution, and strengthen trust between stakeholders.

In conclusion, physical boundary changes resulting from infrastructure development are more than a technical matter, they have important legal and economic implications. Proper legal guidance, thorough documentation, and proactive engagement between landowners and developers are key to ensuring that infrastructure progress benefits communities while respecting property rights.

If you are facing or anticipating boundary changes due to infrastructure development, Schinder Law Firm offers expert legal advice and support. Our experienced team specializes in property law, land disputes, and infrastructure-related legal matters, helping clients protect their interests. Please contact us at info@schinderlawfirm.com for consultation.

Author:
Dewi Susanti

Schinder Consultant London Ltd.

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