Articles
Revocation of Lands Rights

Revocation of Lands Rights

, , ,

Revocation of Lands Rights

Background

In order to implement the provision of the granting of rights of land in accordance with Law Number 5 of 1960 on Agrarian Principle Regulation (“Law No.5/1960”) and Government Regulation Number 40 of 1996 on Right to Cultivate, Right to Build and Right of Use of Land, the procedure of the revocation of such land rights must also be regulated, which is already set forth in Regulation of Agrarian State Minister/Head of National Land Agency Number 9 of 1999 on Procedure of Granting And Revocation of Rights of State Land and Right of Management (“Regulation”).

Revocation of Rights of Land

Point 1 letter 14 of Regulation states that revocation of land rights means the revocation of the decree of the granting of land rights or land rights certificate (“Granting Decree”) due to the administrative legal error in the issuance of such Granting Decree or in order to implement the court decision which has obtained the permanent legal power.

The revocation includes the revocation of: (a) decree of the granting of land rights; (b) certificate of land rights; and (c) decree of the granting of rights in order to regulate the land acquisition. The revocation of land rights is conducted through the decree of Minister who is responsible in agrarian/land field (“Minister”). Minister may delegate such revocation to the Head of Regional Office of National Land Agency, which is the National Land Agency Office for the provincial level (“Regional Office”) or to the appointed officer.

Revocation

1. Revocation of land rights due to administrative legal error

According to Article 107 of Regulation, the administrative legal error means (i) procedural errors, (ii) error implementation of laws and regulations, (iii) error of the subject of rights, (iv) error of the object of rights, (v) error of the type of rights, (vi) error of area calculation, (vii) there is overlap of land rights, (viii) juridical or physical data is incorrect, or (ix) other administrative legal errors.

The decree of revocation of land rights due to administrative legal error in its issuance may be conducted due to (i) the application from the party in interest or (ii) the authorized officer without application. The revocation of land rights due to administrative legal error through the application from the party in interest is submitted directly to the Minister or the appointed officer through the Head or Land Office, which is the National Land Agency for the district/city level (“Land Office”). Meanwhile, the revocation of land rights without application by the authorized officer is conducted if it is found that there is legal error in the issuance process of the Granting Decree without an application.

2. Revocation of land rights due to the court’s decision

The decree of the revocation of land rights due to the implementation of court’s decision which has obtained permanent legal power shall be issued through the application of the party in interest, provided that such application is submitted directly to the Minister or Head of Regional Office or through the Land Office.

Procedure of Revocation of Land Rights

There are some processes in the procedure of revocation of land rights, as follows:

1. Land Office

The revocation application is submitted in writing to the Minister through the Head of Land Office having the work area within the location of the land concerned, and enclosed with documents, such as: (i) copy of identity card and nationality (if the applicant is individual) or copy of deed of establishment (if the applicant is a legal entity); (ii) copy of the Granting Decree and/or certificate of land concerned; (iii) other documents related to the revocation application.
After the application is received, the Head of Land Office shall: (i) inspect and examine the completeness of the juridical and physical data; (ii) record in a form; (iii) provide a receipt of the application; (iv) notify the applicant to complete the juridical and physical data if necessary.
2. Regional Office

In the event that the revocation application is delegated to the Head of Regional Office, the Head of Regional Office shall record it in a certain form and inspect and examine the completeness of the juridical and physical data, and if it is not completed yet, shall request the Head of Land Office concerned to complete the documents.
In the event that the revocation application is delegated to the Head of Regional Office, the Head of Regional Office issue the decree of revocation of land rights or decree of rejection along with the reason.
3. Minister

After receiving the revocation application, the Minister orders the competent officer to inspect and examine the completeness of the juridical and physical data, and if it is not completed yet, shall request the applicant to complete the documents and record it in a certain form.
Minister will decide such application by issuing the decree of revocation of land rights or decree of rejection along with the reason.

read more
Construction Work Contract

Construction Work Contract

, , , ,

Background

Construction service is one of the activities in the field of economy, social and culture which has important role in the achievement of various objectives to support the realization of the national development goals. Therefore, the implementation of construction services needs to be regulated to carry out the orderly of the construction work. Construction services are stipulated under the Law Number 18 of 1999 on Construction Services (“Law No. 18/1999”) and Government Regulation Number 29 of 2000 on Implementation of Construction Services (“PP No. 29/2000”) jo. Government Regulation Number 59 of 2010 on Amendment of PP No. 29/2000 (“PP No. 59/2010”).

In a construction work, there are 2 (two) parties that are involved , namely the service user and the service provider. The service user and service provider are bound in a working relation of construction services, provided that such working relation is set out in a construction work contract.

Construction Work Contract

Based on Article 1 of Law 18/1999, construction work contract is the overall document regulating legal relationship between the service user and the service provider to implement the construction work. Basically, the construction work contract is made separately according to the stages in the construction work, which consists of the construction work contract for the construction work planning, construction work performance, and construction work supervision.

Referring to Article 23 paragraph (6) of PP No. 29/200, the construction work contract is subject to the applicable law in Indonesia. The construction work contract is made in Indonesian language. In the event that the construction work contract with foreign parties, it could be made in Indonesia language and English language (dual language).

According to PP No. 29/2000, construction work contract is divided by:
forms of compensation, which consists of a lump sum, unit price, additional fee to the services, the combination of lump sum and unit price, or alliances;
period of the construction work, which consists of a single year, or multi-year;
terms of payment for the works, in accordance with the progress of the work, or at regular intervals.

As a minimum, a construction work contract shall include description on:

the parties, clearly stipulating their identities;
work description, clearly stipulating in detail of the work’s scope, work’s value, and performance period;
coverage and/or maintenance period, stipulating the provision of the period of coverage and/or maintenance which is the responsibility of the service provider;
experts, stipulating the provision of number, qualification, and classification of experts to perform the construction work;
rights and obligations, which is stipulating the provision of the rights of the service user to receive the results of the construction work and its obligation to comply with the agreed provisions, and also the rights of the service provider to get information and compensation, and its obligations to perform the construction work;
terms of payment, stipulating the provision of service user’s obligation in carrying out the payments for the results of construction work;
default, stipulating the provisions of responsibilities in the event either party fails to carry out its obligations as agreed upon;
dispute settlement, stipulating the provisions of the procedure of the settlement of dispute due to disagreements;
termination of construction work contract, stipulating the provisions of the termination of construction work contract, caused by the inability of either party to perform its obligations;
force majeure, stipulating the provisions of the circumstances arising beyond the intent or capability of the parties, which is inflicting losses to either party;
construction failure, stipulating the provisions of the obligations of the service provider and/or service user on the failure of a construction;
workers protection, stipulating the provisions of the parties’ obligations in the safety, occupational well-being, and social security;
environmental aspect, stipulating the provisions of the parties’ obligations to comply with the applicable environmental law.

Construction work contract also shall contain provisions on intellectual property right, which includes:

ownership of the planning result, based on the agreement, and
fulfillment of the obligations of the copyright on the planning result that has been owned by its holders and patent rights that has been owned by its holders, in accordance with the laws on copyright and the laws on patent.

Construction work contract may also contain the parties’ agreement on incentives, provided that the incentives may be in monetary form or other forms. Incentive is the award that is given to the service provider for his achievements, among others, the ability to finish the works earlier compared to the agreed period, while maintaining the quality as required as set out in the construction work contract.

Isrilitha Pratami Puteri

read more
Mining Area

Mining Area

, ,

Background As explained in Article 1 (30) of Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”), Mining Area means a part of Mining Zone which has already been completed with available data, unlocked potentials and/or geological information. Mining Zone means...

read more