Reconstruction of the Compensation Model for the Placement of Electric Poles on Freehold Land Based on Corrective Justice, Distributive Justice, and Property Rights

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FORMOSA NEWS - Medan - Legal Experts Propose New Compensation Framework for Electric Utility Poles Built on Private Land. Indonesia’s current legal framework leaves private landowners vulnerable to arbitrary compensation when utility providers place electricity poles on freehold property. To solve this systemic legal gap, researchers Muhammad Ridwan Lubis from Universitas Muslim Nusantara Al Washliyah, alongside Cut Nurita and Ahmad Rusly Purba from Universitas Islam Sumatera Utara, and Rini Novita and Diana Lubis from Universitas Darma Agung, published a study in 2026 proposing a reconstructed compensation model. The findings highlight why updating utility laws is vital for protecting individual property rights while supporting national energy infrastructure growth.

Background and Context

As national power grids expand to meet growing energy demands, utility providers frequently erect electricity poles on private property. Unlike full land acquisition—which transfers title ownership to the state or a corporation placing a utility pole merely restricts how a landowner can use their land without stripping away their legal title. Because current regulations fail to clearly address partial land restrictions, compensation practices across Indonesia remain inconsistent. Some property owners receive negotiated payouts, while others receive no compensation at all, leading to disputes, social resistance, and delayed infrastructure projects.

Methodology
The researchers conducted a normative legal study enriched by a socio-legal approach, examining both written laws and real-world administrative practices.

• Statutory Analysis: Evaluated key statutes, including the 1945 Constitution of the Republic of Indonesia, Law No. 5/1960 (Basic Agrarian Principles), Law No. 30/2009 (Electricity), and Law No. 2/2012 (Land Acquisition).
  
• Case & Comparative Studies: Reviewed court decisions involving utility pole disputes and compared land-restriction frameworks internationally.
  
• Empirical Field Work: Conducted semi-structured interviews with affected landowners, utility officials from PT PLN (Persero), and local government authorities, alongside document audits of property agreements and approval letters.
  

Key Findings
The study identifies a significant normative vacuum and regulatory disconnect within existing laws:

• Regulatory Gaps: Law No. 30 of 2009 recognizes a landowner’s general right to compensation but provides no specific assessment formulas, standard procedures, or clear dispute resolution channels.
  
• Disparity in Legal Protection: Comprehensive protections exist for full land acquisition under Law No. 2 of 2012, but no equivalent standards protect owners facing partial land-use restrictions.
  
• Inconsistent Field Practices: Settlements currently rely on informal deliberations or verbal agreements, leaving landowners with weak bargaining power and uncompensated losses in property value.
  

Real-World Impact and Proposed Model
To address these shortcomings, the authors constructed an integrative compensation model built on four theoretical pillars: Property Rights, Corrective Justice, Distributive Justice, and Energy Justice.

Author Profile
Muhammad Ridwan Lubis, S.H., M.H. holds an advanced degree in law and serves as a researcher and academic faculty member at Universitas Muslim Nusantara Al Washliyah. His field of expertise encompasses agrarian law, land policy, administrative law, and legal frameworks governing public utility infrastructure.
Ahmad Rusly Purba Researcher at Universitas Muslim Nusantara (UMN) Al Washliyah, specializing in public law and governance dynamics.

Source

Muhammad Ridwan Lubis, Cut Nurita, Rini Novita, Diana Lubis, Ahmad Rusly Purba.  Reconstruction of the Compensation Model for the Placement of Electric Poles on Freehold Land Based on Corrective Justice, Distributive Justice, and Property Rights. International Journal of Law Analytics (IJLA). Vol. 4, No. 2, 2026, hal. 381-398

DOI: https://doi.org/10.59890/ijla.v4i2.282
URL: https://journal.multitechpublisher.com/index.php/ijla/index