SUMMARY
It is a necessity that the government requires the availability of land under development for the public interest, including housing and settlements. The government has responsibility for environmentally sound settlements, in accordance with the mandate of the 1945 Constitution Article 28 H paragraph 1.However, there are problems with the housing shortage rate (backlog) which reached 7.64 million units as of early 2020, and the density of settlements in the urban areas with inappropriate environmental conditions in Indonesia. In this case, the land bank mechanism is an alternative to environmentally sound settlements. This paper describes what are the opportunities and challenges of a land bank towards an environmentally sound settlement based on sustainable development, justice and legal benefits? The writing of this article is based on a statute approach and a conceptual approach, which are qualitative in nature and use secondary data. Based on this, it was found that the Indonesian government, based on existing statutory instruments (bestuur-executive), has legal certainty in organizing, regulating and executing the responsibilities assigned by the State to it. However, in supporting legal certainty, justice and legal benefits, the government needs to immediately issue a government regulation regarding Law No.11 of 2020 concerning work copyright. The government in this case should consider the opportunities and challenges of land banks in realizing environmentally friendly settlements.