Principle of Land Use in Indonesia Article 33 (3) of The Constitution The land, waters and natural wealth contained within them are controlled by the State dan shall be utilised to increase the prosperity of the People.
LAND LAW
Mailinda Eka Yuniza UGM – CDU January 2012
INDONESIA
INDONESIA
The Republic of Indonesia is by far the largest country in Southeast Asia, both in area and population. It consists of 13,677 islands that cover 1,919,443 km2 of land along the equator between the Indian and Pacific oceans. it is the largest archipelago on earth. This has lead to the development of what is known as the "archipelagic concept" (wawasan nusantara) in which the nation known as Indonesia comprises not simply just islands of land, but also the area of sea between the islands.
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Background Two Important phases of land law development in Indonesia: -> Before Sept 1960 (the enactment of The Basic Agrarian Law Act -> After the enactment of BAL
Background Indonesia was under colonial rule for about 350 years. Dualism on land law: adat law and western law Land law is commonly associated with: disorder and injustice Genuine adm law that is used by the state to determine land use: planning and licencing
Principle of Land Use in Indonesia Article 33 (3) of The Constitution The land, waters and natural wealth contained within them are controlled by the State dan shall be utilised to increase the prosperity of the People.
Principle of Land Use in Indonesia the Indonesian state is the administrator of all land on behalf of the Indonesian people, underpinned by principle that land has a ‘social function’ and that private property is in the gift of the state rather than an individual right
STATUS OF LAND
Based on the status of land, there are: state land and private land. Private land: land with certain right on it, registered or not State land: the rest of the land, could be divided as state land with rights on or free state land In Indonesia, we also apply separation on land, horizontal separation
LAND TITLES
Forms of land title regulated by the UUPA and issued by the National Land Board (BPN) include: •Hak Milik -- roughly equivalent to Freehold title of English common law jurisdictions •Hak Guna Usaha -- Cultivation Rights Title •Hak Guna Bangunan -- Building Rights Title •Hak Pakai -- Right to Use Title •Hak Sewa untuk Bangunan -- Right to Rent for Buildings •Hak Membuka Tanah -- Land Clearing Rights •Memungut Hasil Hutan -- Forestry Rights •Water Use and Fisheries Rights, Airspace Use Rights, Land Title for Social & Religious Purposes
LAND TITLES
To foreign as well as domestic investors, the most important titles to be aware of are Freehold Title (Hak Milik), Cultivation Rights Title (HGU or Hak Guna Usaha), Building Use Title (UGB or Hak Guna Bangunan) and Right to Use Title (HP or Hak Pakai).
LAND REGISTRATION A Land Title Deed is known in Indonesia as a Sertifikat Tanah, and is always accompanied by a Survey Certificate known as Surat Ukur that documents the location and dimensions of the land. Land transfers and land title deeds are drafted by a Land Deed Official known as Pejabat Pembuat Akte Tanah or PPAT. PPAT are very commonly also Notaries, and are easy to find even the smallest of towns in Indonesia.
LAND ACQUISITION State revokes rights to land in the public interest As the consequence of “social function”of land
PUBLIC INTEREST Public roads, toll roads, railways and water and sanitation pipes Dams, water sources, irrigation and waterways Ports, airports and stations Public safety facilities Rubbish dumps Nature reservations and cultural reservations Generators, electricity and transmitter
Basis for acquisition law Art 6 BAL: all rights to land have ‘social function’ which is interpreted in the elucidation to mean that individual rights must be balanced with the interest of the community. Art 18: rights to land may be revoked in the public interest, including the interests of the nation, the state and the people as a whole on payment of appropriate compensation Art 34 and 40: allow for termination of business use rights and building use rights where they have been revoked in the public interest
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