Jardin Legal Contributes to Socialization of Indonesia’s Land Value Capture Framework for Infrastructure Financing

Jardin Legal was invited as a speaker at the socialization of Coordinating Minister for Economic Affairs Regulation Number 3 of 2026 regarding Guidelines for the Implementation of Infrastructure Financing Schemes Through the Management of Land Value Capture (P3NK) (CMEA Reg. 3/2026). The discussion also highlighted the implementation and significance of Presidential Regulation Number 79 of 2024 concerning the Funding for the Provision of Infrastructure through Management of Acquisition of Land Value Capture (PR 79/2024), which serves as the principal legal framework for the implementation of land value capture mechanisms in supporting infrastructure financing and area development.

The event was organized by the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, through the Assistant Deputy for Economic Area and Strategic Project Development. The socialization session was attended by representatives and officials from various regional governments across Indonesia as part of ongoing efforts to strengthen understanding and implementation of innovative infrastructure financing mechanisms.

In the session, Jardin Legal shared insights on the planning and value creation aspects of P3NK, including the determination of potential catchment areas (wilayah tangkapan), preparation of the P3NK Feasibility Study, formulation of the RP3NK, and value creation (penciptaan nilai) as the initial stage of the Land Value Capture cycle.

The discussion further addressed institutional arrangements for feasibility study preparation and P3NK Managers (Pengelola P3NK), as well as the key principles of feasibility study approval and its function as the basis for RP3NK formulation. It also highlighted that regional value creation can be conducted through the implementation of certain government policies and/or infrastructure provision, which may generate value uplift to be captured and reinvested to support infrastructure provision and area development.

The issuance of PR 79/2024 marks an important milestone in Indonesia’s infrastructure development agenda, providing a broader policy framework for utilizing value capture instruments to support public infrastructure projects. In line with this development, CMEA Reg. 3/2026 serves as a technical guideline for the implementation of the scheme by relevant stakeholders, including regional governments.

Jardin Legal appreciates the trust and opportunity to contribute to the discussion and remains committed to supporting public sector initiatives through strategic legal insight and regulatory expertise, particularly in areas relating to infrastructure, public-private partnerships, and economic development policies.