Challenges and Strategies in the Return of Land Bailout Funds for Toll Road Construction: A Detailed Analysis of PT Hutama Karya’s Approach

This study explores the factors that cause the delay in the process of returning the Land Bailout Fund (LBF) and examines potential problems related to the inability of the Government of Indonesia to return LBF to PT Hutama Karya (HK) in the context of the Trans Sumatra Toll Road project. Using a qualitative case study methodology in the framework of empirical law, this study integrates Gustav Radbruch’s theory of legal objectives to analyze the current legal regulations. Primary data were collected through interviews with key informants and secondary data on the realization of LBF at PT HK. The findings show that the main cause of the delay is the length of time it takes for the Commitment Making Officer (CMO) to prepare the LBF return submission documents, coupled with the slow verification process at the State Asset Management Agency (SAMI). In addition, problems related to the Land Bailout Fund that cannot be returned arise when the land acquisition is outside the specified area or when the business use right permit is not extended. The current laws and regulations, including the regulations of the Minister of Public Works and Public Housing and the Minister of Finance, are unable to overcome this gap, resulting in the failure to achieve legal goals in terms of justice and legal certainty. This study shows that this legal ambiguity inhibits the effectiveness of the LBF mechanism and recommends legislative changes to address this gap. By refining the legal provisions, the study supports increased fairness and certainty, ultimately benefiting the government and entities such as PT HK.