Over land funtion by leasing state owned enterorises pt. kai (persero) in west sumatera

The Indonesian railway company (PT. KAI persero) is a state owned enterprise whose business requires the use of land. In order to optimalise this land use the company leasing land to the community on parts of the line that are not currently being used because the line is regarded as uneconomic and no longer in operation. Leasing of land occurs with or without a certification process. Since independence many of West Sumatera's rail lines have stopped functioning but the railway company continues to rent out the land. Leasing contracts resemble standard contracts and are formulated by the railway company themselves. The form of the contract gives the impression that the land is rented from the state and that the lessee only obligation is to pay the rent and can then utilise the land as they see fit. There is no commensurate agreement with the party lessor the land. In light of this two issues can be formulated: What is the regulations and legal status relating to the Leasing of land by the Indonesian railway company to members of the community? Does it have a valid and legal right to do this in the eyes of the law? Normative empirical juridical methadology was used in this study involving both library and field research which was conducted West Sumatra Regional Division II and with the lessee of railway land. Purposive sampling was used. Results showed that the Indonesian Railway Company basis for Leasing land is the legal provisions of the Ministry of State Owned Enterprise and Raliway Company regulations. However these leasing based on Ministry of State Owned Enterprise decrees are invalid if the regulations do not specify The Indonesian Railway company.