Land Ownership Indonesia: What Happens to Abandoned Land?

What Happens When a Piece of Land is Abandoned in Indonesia?

  • InCorp Editorial Team
  • 11 January 2021
  • 3 minute reading time

Land is precious and usually used to benefit both businesses and communities. However, a great number of land rights holders do not execute their rights properly. This careless disregard of their lands and specific rights eventually leads to their lands turning into abandoned lands under the Indonesian Laws, namely PP 11/2010 on the Issuance and Utilisation of Abandoned Land, Perka BPN 4/2010 and Perka BPN 9/2011 on Procedures for Abandoned Land.

Oftentimes, abandoned land in Indonesia is handed over automatically to the State after significant years of inactivity. The land can also be declared as abandoned when there is an inappropriate use of land.

After reading through this guide, you will know when your land ownership in Indonesia will be void if you are not careful, what the basis is for a land to be claimed as abandoned by the law as well as what happens after.

Criteria for Land to be Considered Abandoned in Indonesia

Under the National Land Agency (BPN), the State decides if the land is determined as an abandoned land.

There is a set of criteria for a land to be deemed abandoned, as follows:

  • Land that is granted rights by the State in terms of business rights, ownership rights, land use rights, or management rights, that is not cultivated, not used, or not utilised in accordance to the land’s nature, condition, or intended purpose
  • Land that possesses land rights in terms of business rights, ownership rights, land use rights, building rights, or management rights that are not cultivated, not used, or not utilised following the land’s nature, condition, or intended purpose
  • Land that does not have a submission for the land rights application or clear legal support
  • Land that does not have any proof of ownership or authority

There will be legal consequences when land is demonstrated as abandoned by law. The authority will terminate the owner’s land right and submit the ownership termination or change to the State.

After that, the State will seize control of the land’s ownership. Based on the Head of the Regional Office’s proposal, the Decision on Abandoned Land Determination will then be issued by the Head of BPN.

Once the decision is made, the former holder or the owner of the abandoned land must vacate the land from any objects of cultivation, utilisation, or use as soon as possible under the provisions of Perka BPN No.4/2010 and Perka BPN No.9/2011.

If the former landholder or owner does not carry this obligation as stated, the State will as well take control of the objects or property on the land.

Consult with Cekindo Regarding Land Ownership in Indonesia

Whether you are selling or purchasing land, making changes to ownership title, applying for the proper use rights for lands, or just looking for general advice, Cekindo has a wide range of solutions for you. We understand that each of our clients is unique and therefore we tailor our services based on individual client needs.

Cekindo has spent significant resources and time to create the most appropriate legal structure to ensure full compliance with your land ownership in Indonesia as well as local investment regulations. Our experienced land ownership and property experts will help you find the answers and solutions you need.

Consult with Cekindo with regard to your land ownership in Indonesia and give yourself an advantage as a foreign investor.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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