Local Government Authority in Supervising Land Lease Agreements for Billboards to Ensure the Fulfillment of the Principle of Proportionality

Abstract

A This article analyzes the intersection between public administrative authority and private autonomy regarding billboard land lease agreements in Surabaya. The purpose of this study is to examine the regulation of local government authority in supervising these agreements and to design an ideal supervisory framework that ensures the fulfillment of the principle of proportionality. Employing a normative legal methodology with statute, conceptual, case, and comparative approaches, this study evaluates the implementation of Surabaya Mayor Regulation Number 70 of 2024 and relevant judicial precedents. The findings reveal a significant normative gap; current local government oversight remains strictly formalistic and restricted to administrative compliance, leaving substantial contractual imbalances and adhesive clauses unaddressed until they escalate into litigation. To resolve this, the study proposes an ideal, integrated supervisory construction that harmonizes public administrative law with private contract law. This framework incorporates a pre-licensing administrative review of minimum contractual standards, unified inter-agency coordination, and non-binding balanced guidelines. Ultimately, this preventive approach effectively safeguards the public interest, ensures legal certainty, and protects the contractual equilibrium for all stakeholders without undermining the principle of freedom of contract.