to those in need; (iv) administering the sale and 
purchase of land in accordance with the provisions. 
Van Dijk explains that land bank activities can take 
the form of systematic land acquisition which is 
usually on a large scale, and that land will be used in 
the future to implement land policies (2006). 
The functions of the Land Bank include (i) land 
keeper in the form of inventory and development of 
land databases, administration and land information 
systems; (ii) land warrantee in the form of securing 
supply, designation, land use in accordance with the 
spatial plan and ensuring the efficiency of the land 
market; (iii) land control (land purchaser) in the 
form of control of land ownership and use in 
accordance with applicable regulations; (iv) land 
valuers in the form of supporting standard, fair and 
mandatory land values for various purposes; (v) land 
distributors (land distributors) in the form of 
ensuring fair and equitable distribution of land based 
on the unity of land values, securing land planning, 
supply and distribution; (vi) land manager in the 
form of land management, analysis, determination of 
strategy and implementation management related to 
land. 
Thurston stresses that the objectives of the Land 
Bank include (i) managing urban growth; (ii) 
ensuring the availability of land for certain purposes; 
(iii) taking capital gains due to an increase in land 
value. Flechner (1974) added, if related to the 
government, the Land Bank's objectives could 
include (i) forming regional growth; (ii) arranging 
the development of the city; (iii) obtaining from 
increasing the value of land investment; (iv) 
perfecting the land market so as to reduce land 
speculation; (v) obtaining land for public use; (vi) 
reducing the cost of public services as a result of a 
planned development; (vii) allowing to provide 
housing subsidies for low-income communities; 
(viii) maintaining environmental quality (Limbong, 
2013). 
In general, the Land Bank is useful for (i) 
controlling the land market that guarantees the 
efficiency and rationality of land prices; (ii) 
streamlining and guarantee fair and fair land values; 
(iii) having able to integrate policies, strategies, 
implementations and evaluations related to land. 
While Limbong added other benefits such as (i) 
helping to achieve various goals (not only one type 
of activity but can vary from housing, infrastructure, 
and others); (ii) can be an integral part of 
metropolitan development. In particular, the benefits 
of the Land Bank for Indonesia include  (i) 
availability of land guaranteed especially in urban 
areas; (ii) land prices are affordable and relatively 
stable; (iii) support food security and housing 
programs for low-income communities; (iv) 
guarantee the implementation of agrarian reform and 
village modernization (Limbong, 2013). 
In addition, Limbong based on his observations 
of land conditions in Indonesia confirms that the 
Land Bank is able to answer some of the crucial 
issues facing the government today, namely the 
government has land reserves. The Land Bank is the 
government's engine in providing land reserves for 
development purposes such as public facilities, 
infrastructure, development of strategic cities and 
regions, resettlement of disaster victims, liberation 
and eviction of slums, and food security through 
reducing the rate of agricultural land conversion 
(Limbong, 2013). 
The benefits, the purpose and function of the 
presence of the land bank that has been described by 
the experts above are the basis for arguments for the 
urgency of establishing a land bank itself which 
cannot be bargained again to launch development for 
the public interest. Because with this land bank the 
government has a land stock, able to do the state 
budget efficiency and avoid land acquisition 
conflicts that always cut development in the public 
interest.  
Constitutionally, the establishment of a land 
bank in Indonesia is a constitutional mandate Article 
33 Paragraph 3 of the 1945 Constitution which states 
that the earth, water and natural resources contained 
in it are controlled by the State and used as much as 
possible for the prosperity of the people. That is, 
common interests are more important than 
individual interests. This shared interest is a 
development that is oriented towards public benefit. 
 Constitution as the highest law in the legal 
hierarchy in Indonesia ((Law No. 12 of 2011 
concerning Establishment of Legislation 
Regulations, 2011), the mandate in relation to the 
earth, water and natural wealth in this country is 
translated into Law Number 5 of 1960 concerning 
Agrarian Principles, article 2 paragraph (1) the 
authority of the State concerning land includes (a) 
regulating inventory, use, designation and 
maintenance of the earth, water and space; (b) 
determine and regulate the legal relations between 
people regarding the earth, water and space; (c) 
determine and regulate the legal relationship 
between people and legal acts regarding the earth, 
water and space.  
In relation to land tenure and ownership aspects, 
state activities include (a) protection and giving 
equal opportunities for every Indonesian citizen to 
own land as a source of life properly; (b) prevention