IS09AL8Y4Head of National Land Agency Regulation No. 2/2013 on Delegation of Authority to Grant the Land Right and Act of Land Registration (“Head of BPN Regulation 2/2013”) states that the grant of the land right is government decree that grants a right to the state land, including extension to the term of right and the renewal of right and the granting of right over the land with right to manage (“Grant of the Land Right“). Land right means, among others, right of ownership, right to build, and right of use (“Land Right”). Authority to Grant of the Land Right is given to: (i) head of the Land Office, (ii) head of Regional Office of National Land Agency, and (iii) head of National Land Agency of the Republic of Indonesia.

Regional Office of the National Land Agency is a vertical institution of National Land Agency in the province which is under and responsible to the head of National Land Agency of the Republic of Indonesia (“Regional Land Office“). Land Office is vertical institution of National Land Agency in district/city which is under and responsible to the head of National Land Agency of the Republic of Indonesia through the head of Regional Land Office (“Land Office“).

Head of the Land Office, head of Regional Land Office, and head of National Land Agency of the Republic of Indonesia have their respective authorities in order to Grant the Land Right. If it is seen based on the Land Right, then the division of authority, among others:

Right Of Ownership

Head of the Land Office grants a decree regarding:

  1. granting right of ownership for individual over agricultural land which area is no more than 50,000 m2(fifty thousand square meters);
  2. granting right of ownership for individual over non-agricultural land which area is ​​no more than 3,000 m2(three thousand square meters);
  3. granting right of ownership for religious and social legal entity which is established under Government Regulation No. 38 of 1963 on Appointment of Legal Entity Which May Obtain the Right of Ownership of Land, over the non-agricultural land, which area is no more than 50,000 m2(fifty thousand square meters);
  4. granting right of ownership over the land in order to perform these following programs:
  5. transmigration;
  6. land redistribution;
  7. land consolidation;
  8. the program which is funded by the State Revenues and Expenditures Budget (“APBN”) and/or Regional Revenues and Expenditures Budget (“APBD”); and
  9. strategically and mass land registration.
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Head of Regional Land Office grants a decree regarding:

  1. granting right of ownership for individual over agricultural land which area is more than 50,000 m2(fifty thousand square meters) and no more than maximum limit area for individual ownership of agricultural land;
  2. granting right of ownership for individual over non-agricultural land which area is ​​more than 3,000 m2(three thousand square meters) and no more than 10,000 m2 (ten thousand square meters);
  3. granting right of ownership for religious and social legal entity which has been established under Government Regulation No. 38 of 1963 on Appointment of Legal Entity Which May Obtain the Right of Ownership of Land, over the non-agricultural land which area is more than 50,000 m2(fifty thousand square meters) and no more than 150,000 m2 (one hundred fifty thousand square meters);

Right to Build

Head of the Land Office grants decree regarding:

  1. granting right to build for individual over the land which area is no more than 3,000 m2(three thousand square meters);
  2. granting right to build for legal entity on land which area is no more than 20,000 m2(twenty thousand square meters); and
  3. granting right to build over the land with right to manage.

Head of BPN Regional Office grants decree regarding:

  1. granting right to build for individual on land which area is ​​more than 3,000 m2(three thousand square meters) and no more than 10,000 m2 (ten thousand square meters);
  2. granting right to build for legal entity on the land which area is ​​more than 20,000 m2(twenty thousand square meters) but no more than 150,000 m2 (one hundred and fifty thousand square meters).

Right of Use

Head of the Land Office grants decree regarding:

  1. granting right of use for an individual on large farms of no more than 50,000 m2(fifty thousand square meters);
  2. granting right of use for an individual right to use non-agricultural land covering an area of ​​no more than 3,000 m2(three thousand square meters);
  3. granting right of use for private legal entities, state-owned enterprise (“BUMN”)/regional government-owned enterprise (“BUMD”) over non-agricultural land, which area is no more than 20,000 m2(twenty thousand square meters);
  4. granting right of use over the land with right to manage; and
  5. granting right of use of the assets of the central government and local government.
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Head of Regional Office grants decree regarding:

  1. granting right of use for individual over agricultural land which area is more than 50,000 m2(fifty thousand square meters) and no more than 100,000 m2(one hundred thousand square meters);
  2. granting right of use for individual over non-agricultural land which area is more than 3,000 m2 (three thousand square meters) and not more than 10,000 m2(ten thousand square meters);
  3. granting right of use for private legal entities, BUMN/BUMD over non-agricultural land which area is no more than 20,000 m2 (twenty thousand square meters) and not more than 150,000 m2(one hundred and fifty thousand square meters).

Right to Cultivate

Head of Regional Land Office gives a decree regarding granting of right to cultivate over the land which area is ​​no more than 2,000,000 m2 (two million square meters).

Other Authorities

  1. Head of Regional Land Office grants a decree regarding:
    1. granting of cooperation permit between the holder of right to manage with the third party, if it is required by the decree of granting the right to manage;
    2. granting permission of land acquisition for Religious and Social Organization Charity, if it is required by the approval decree in event that the legal entity may own land with right of ownership.
  2. Head of Regional Land Office gives decision on stipulation of the state land to become the object of landreform.
  3. The Head of National Land Agency of the Republic of Indonesia gives decision on Grant of the Land Right, which is given in general.
  4. The National Land Agency of the Republic of Indonesia gives decision on the Grant of the Land Right which authority is not delegated to Head of Land Office or Head of Regional Land Office.

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Exori Claudia Isura Purba