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REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

NUMBER 11 OF 2010

CONCERNING

CONTROL AND EMPOWERMENT OF ABANDONED LAND

WITH THE BLESSING OF GOD ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering: a. that under Article 27, Article 34, and Article 40 of Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs, title to land shall be extinguished because of abandonment;

b. that at present, land abandonment has progressively widened the social, economic and public welfare gap and degraded the environmental quality; therefore, control and empowerment of abandoned land need re-regulation;

c. that Regulation of the Government Number 36 of 1998 concerning Control and Empowerment of Abandoned Land can no longer be reference to undertake control and empowerment of abandoned land, and thus needing replacement;

d. that in consideration of point a, point b, and point c, it is necessary to issue a Regulation of the Government concerning Control and Empowerment of Abandoned Land;

Bearing in Mind: 1. Article 5 section (2) of the 1945 Constitution of the Republic of Indonesia;

2. Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs (State Gazette of the Republic of Indonesia Number 104 of 1960, Supplement to State Gazette of the Republic of Indonesia Number 2043);

3. Law Number 4 of 1996 concerning Security Interest over Land and Objects Attached to Land (State Gazette of the Republic of Indonesia Number 42 of 1996, Supplement to State Gazette of the Republic of Indonesia Number 3632);

4. Law Number 41 of 1999 concerning Forestry (State Gazette of the Republic of Indonesia Number 167 of 1999, Supplement to State Gazette of the Republic of Indonesia Number 3888);

5. Law Number 1 of 2004 concerning The State Property (State Gazette of the Republic of Indonesia Number 5 of 2004, Supplement to State

Translated by Wishnu Basuki wbasuki@gmail.com

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Gazette of the Republic of Indonesia Number 4355);

6. Law Number 18 of 2004 concerning Plantation (State Gazette of the Republic of Indonesia Number 84 of 2004, Supplement to State Gazette of the Republic of Indonesia Number 4411);

7. Law Number 32 of 2004 concerning The Regional Governments (State Gazette of the Republic of Indonesia Number 125 of 2004, Supplement to State Gazette of the Republic of Indonesia Number 4437), as amended, most recently amended by Law Number 12 of 2008 concerning The Second Amendments to Law Number 32 of 2004 concerning The Regional Governments (State Gazette of the Republic of Indonesia Number 59 of 2008, Supplement to State Gazette of the Republic of Indonesia Number 4844);

8. Law Number 26 of 2007 concerning Spatial Planning (State Gazette of the Republic of Indonesia Number 68 of 2007, Supplement to State Gazette of the Republic of Indonesia Number 4725);

9. Law Number 41 of 2009 concerning Protection of Sustainable Food Agricultural Land (State Gazette of the Republic of Indonesia Number 149 of 2009, Supplement to State Gazette of the Republic of Indonesia Number 5068);

10. Regulation of the Government Number 40 of 1996 concerning Right to Cultivate, Right to Build, and Right to Use (State Gazette of the Republic of Indonesia Number 58 of 1996, Supplement to State Gazette of the Republic of Indonesia Number 3643);

11. Regulation of the Government Number 38 of 2007 concerning Distribution of Governmental Affairs Among the Government, the Provincial Governments, and the District/City Governments (State Gazette of the Republic of Indonesia Number 82 of 2007, Supplement to State Gazette of the Republic of Indonesia Number 4737);

HAS DECIDED:

To Issue: REGULATION OF THE GOVERNMENT CONCERNING CONTROL AND EMPOWERMENT OF ABANDONED LAND.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Regulation of the Government:

1. Right of Ownership (Freehold), Right to Cultivate, Right to Build, and Right to Use mean titles to land as intended by Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs.

2. Land Concession means a Right of Possession derived from the State, the exercising authority of which is partially delegated to its holder.

3. Land tenure means a permit/decision/certificate derived from the competent official, upon which a person or a legal entity possesses, uses, or utilizes land.

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4. Landholder means a landholder, land concessionaire, or holder of permit/decision/certificate derived from the competent official, upon which land tenure is based.

5. Head means the Head of the National Land Agency of the Republic of Indonesia.

6. Head of the Regional Office means the Head of the Regional Office of the National Land Agency.

CHAPTER II

OBJECTS SUBJECT TO ABANDONED LAND CONTROL

Article 2

Objects that are subject to abandoned land control shall include land, the title to which has been granted by the State through the Right of Ownership (Freehold), Right to Cultivate, Right to Build, Right to Use, and Land Concession, or land tenure, which the land is uncommercialized, unused, or unutilized in accordance with its condition or nature and the purpose on which title or land tenure is granted.

Article 3

Objects that are subject to abandoned land control as intended by Article 2 shall not include:

a. the Right of Ownership (Freehold) or Right to Build land in the name of an individual that is accidentally used other than in accordance with the condition or nature and the purpose on which title is granted; and

b. land possessed either directly or indirectly by the government and having or not having the status of the Property of the State/Region that is accidentally used other than in accordance with the condition or nature and the purpose on which title is granted.

CHAPTER III

IDENTIFICATION AND RESEARCH

Article 4

(1) The Head of the Regional Office shall prepare data on land with indication of abandoned land.

(2) Data on land as intended by section (1) shall be grounds on which identification and research are conducted.

Article 5

(1) Identification and research as intended by Article 4 section (2) shall be conducted by the Committee.

(2) The composition of membership of the Committee as intended by section (1) shall include the elements of the National Land Agency and the elements of the relevant agencies as governed by the Head.

Article 6

(1) Identification and research as intended by Article 5 section (1) shall be conducted:

a. 3 (three) years of the issuance of the Right of Ownership (Freehold), Right to Cultivate, Right to Build, and Right to Use; or

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b. as of the expiration of the permit/decision/certificate of land tenure derived from the competent official.

(2) Identification and research of abandoned land shall include:

a. the name and address of the Landholder;

b. location, acreage, title status or land tenure and physical condition of land possessed by the Landholder; and

c. condition that results in land abandonment.

Article 7

(1) The activities of identification and research as intended by Article 6 shall include:

a. verify the physical data and juridical data;

b. check the land books and/or papers and other documentation to enable knowledge of the existing encumbrances, including the data, plan, and stages of the use and utilization of land at the time title is applied for;

c. make inquiry of the Landholders and other relevant parties, and the Landholders and other relevant parties must provide information or deliver data required;

d. conduct physical checks;

e. plot location with respect to the use and utilization of land on land maps;

f. analyze factors that contribute land abandonment;

g. prepare a report on the identification and research findings;

h. convene the Committee meeting; and

i. prepare the Minutes.

(2) The Committee shall submit a report on the identification and research findings, and the Minutes as intended by section (1) to the Head of the Regional Office.

CHAPTER IV

WARNINGS

Article 8

(1) If the identification and research findings as intended by Article 7 section (2) conclude that there is abandoned land, the Head of the Regional Office shall notify, whereupon issue a first written warning to the Landholder in order to, within 1 (one) month of the issuance of the warning, use his/her land in accordance with its condition or nature and purpose on which title is granted or in accordance with the permit/decision/certificate as land tenure.

(2) If the Landholder fails to heed the warning as intended by section (1), the Head of the Regional Office shall issue a second written warning with the same period as the first warning.

(3) If the Landholder fails to heed the warning as intended by section (2), the Head of the Regional Office shall issue a third written warning with the same period as the second warning.

(4) Warning as intended by section (1), section (2), and section (3) shall be reported by the Head of the Regional Office to the Head.

(5) Where land as intended by section (1), section (2), and section (3) is attached with a

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security interest (mortgage), the warnings shall also be notified to the security interest holder (mortgagor).

(6) If the Landholder constantly fails to heed the warning as intended by section (3), the Head of the Regional Office shall recommend the Head to declare the relevant land as abandoned land.

CHAPTER V

DECLARATION OF ABANDONED LAND

Article 9

(1) The Head shall declare abandoned land upon recommendation of the Head of the Regional Office as intended by Article 8 section (6).

(2) Where land to be declared abandoned land is certified land as intended by Article 6 section (1) point (a), declaration of abandoned land as intended by section (1) shall also state extinguishment of title to land and at the same time determine termination of legal relationship and confirm as land under direct control of the State.

(3) Where land to be declared abandoned land is land having been granted tenure as intended by Article 6 section (1) point (b), declaration of abandoned land as intended by section (1) shall also state termination of legal relationship and confirm as land under direct control of the State.

Article 10

(1) Where land declared abandoned land as intended by Article 9 section (1) represents a whole area, the title to the land shall be extinguished, legally terminated, and confirmed as land under direct control of the State.

(2) Where land declared abandoned land as intended by Article 9 section (1) represents a partial abandoned area, the title to the land shall be extinguished, legally terminated, and confirmed as land under direct control of the State, and further the former Landholder shall be regranted a plot of land actually commercialized, used, and utilized in accordance with a decision on which the title is granted.

(3) To acquire title to land of a plot of land as intended by section (2), the former Landholder may file an application for title to land under laws and regulations.

Article 11

(1) If the certified abandoned land is less than or equivalent to 25% (twenty-five percent), the Landholder may file an application for revision of acreage of land actually used and utilized under a decision upon which the title is granted.

(2) Cost of revision with respect to reduction in the acreage as intended by section (1) shall be for the account of the Landholder.

Article 12

(1) Land recommended to be declared abandoned land shall be declared the status quo as of the date of recommendation as intended by Article 8 section (6).

(2) Land declared the status quo as intended by section (1) shall not be subject to any legal acts until declaration of abandoned land is issued, which the declaration also states the extinguishment of

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the title to land, and termination of legal relationship as well as confirms as land under the direct control of the State.

Article 13

(1) Land declared abandoned land must within 1 (one) month of the declaration of abandoned land be vacated by the former Landholder of objects attached to the land at his/her own expenses.

(2) If the Landholder fails to meet an obligation as intended by section (1), the objects attached to the land shall no longer be his/her property and shall be under the direct control of the State.

Article 14

Ancillary provisions on procedures for control of abandoned land shall be governed by Regulation of the Head.

CHAPTER VI

EMPOWERMENT OF STATE LAND OF FORMER ABANDONED LAND

Article 15

(1) Allocation of possession, ownership, use, and utilization of state land of former abandoned land as intended by Article 9 section (1) shall be empowered in the public and state interest through the state’s agrarian reform and strategic program and for the benefit of state’s other reserves.

(2) Allocation of possession, ownership, use, and utilization of state land of former abandoned land as intended by section (1) shall be performed by the Head.

Article 16

No permit/decision/certificate of whatever form shall be issued for land as intended by Article 15 section (1) with respect to its possession and use other than those provided for in Article 15.

Article 17

The implementation of control of abandoned land and empowerment of state land of former abandoned land shall be performed by the Head, the results of which shall be reported at regular intervals to the President.

CHAPTER VII

TRANSITIONAL PROVISIONS

Article 18

Upon this Regulation of the Government coming into effect, land having been identified or warned as abandoned land under Regulation of the Government Number 36 of 1998 concerning Control and Empowerment of Abandoned Land shall within 3 (three) months be followed up under this Regulation of the Government.

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CHAPTER VIII

CONCLUDING PROVISIONS

Article 19

Upon this Regulation of the Government coming into effect, Regulation of the Government Number 36 of 1998 concerning Control and Empowerment of Abandoned Land and its ancillary regulations are declared to no longer be in effect.

Article 20

This Regulation of the Government shall take effect from the date it is promulgated.

In order that every person may know of it, the promulgation of this Regulation of the Government is ordered by placement in the State Gazette of the Republic of Indonesia.

Issued in Jakarta

on January 22, 2010

PRESIDENT OF THE REPUBLIC OF INDONESIA,

sgd.

DR. H. SUSILO BAMBANG YUDHOYONO

Promulgated in Jakarta

on January 22, 2010

MINISTER OF LAW AND HUMAN RIGHTS OF

THE REPUBLIC OF INDONESIA,

sgd.

PATRIALIS AKBAR

STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 16 OF 2010

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ELUCIDATION

OF

REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

NUMBER 11 OF 2010

CONCERNING

CONTROL AND EMPOWERMENT OF ABANDONED LAND

I. GENERAL

Land is a gift from God Almighty for the people, the nation and the State of Indonesia and must be commercialized, utilized and used in the best prosperity of the people. Until the present, the possessed and/or owned land, either with title to land or newly-acquired in several places are considerably abandoned, and thus lofty ideals to the improvement of public welafer cannot be reached in an optimum manner. Therefore, it is necessary to reorganize with realizing land as the source of public welfare, to realize more just life, to guarantee the sustainability of Indonesia’s national and social system, as well as to strenghthen the social harmony. In addition, optimalization of commercialization, use, and utilization of all land in the territory of Indonesia are required to upgrade the environmental quality, decrease poverty and create job opportunity as well as increase food and energy security.

Land abandonment in rural and urban areas, in addition to demonstrating a lack of judgment, non-economical acts (loss of opportunities in the realization of potential economy of land), and unjust acts, also constitutes a violation of obligations required of the Landholders or parties having obtained land tenure. Land abandonment also results in delay in reaching various goals of the development program, vulnerability of food security and national economic resilience, no access to public social-economic affairs, in particular, land-based farmers, and the disruptions to sense of justice and social harmony.

The State confers title to land or Land Concessions upon the Landholders to be commercialized, used, and utilized as well as maintained properly; in addition to being dedicated to the welfare of the Landholders, it is also dedicated to the welfare of the public, state and nation. The State confers any rights upon persons or legal entities along with the obligations as stated in Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs and a decision on which title is granted. As aforesaid, the Landholders are prohibited from abandoning their land, and if the Landholders abandon their land, they will face legal consequences as governed by the Basic Regulations of Agrarian Affairs, i.e, with extinguishment of the relevant title to land and termination of legal relationship as well as confirmation as land under the direct control of the State. Where land is without title but has land tenure, the use of such land must be subject to title to land under Article 4 in conjunction with Article 16 of Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs. Therefore, any persons or legal entities having obtained land tenure, either through land procurement from other person’s right, designation by the holder of Land Concession, obtainment of a location permit, or obtainment of a decision on release of forest areas, are obligated to maintain their land, commercialize it properly, not abandon it, as well as file an application for title to land. Although the relevant persons or legal entities have not acquired title to land and they abandon their land, their legal relationship with land shall be extinguished and the land is declared as land under the direct control of the State.

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Land abandonment must be prevented and controlled in order to reduce or eliminate its negative impacts. Prevention, control and empowerment of abandoned land are important measures and preconditions to implement the national development programs, especially in the agrarian sector as mandated by the 1945 Constitution of the Republic of Indonesia, Basic Regulations of Agrarian Affairs as well as the National Long-Term Development Plan.

II. ARTICLE BY ARTICLE

Article 1

Sufficiently clear

Article 2

Land having been granted Right of Ownership (Freehold), Right to Cultivate, Right to Build, and Right to Use, or Land Concession is declared abandoned land if the land is uncommercialized, unused or unutilized in accordance with the condition and nature and the purpose on which title is granted. Likewise, land with land tenure is declared abandoned land if the land is without title, uncommercialized, unsued, or unutilized in accordance with the requirements or provisions as stated in the location permit, decision on which title is granted, decision of release of forest areas, and/or permits/decisions/other certificates derived from the competent official.

Article 3

Point a

“Accidentally used other than in accordance with the condition or nature and the purpose on which title is granted” in this provision means that the individual Landholder cannot afford economically to commercialize, use, or utilize in accordance with the condition or nature and the purpose on which title is granted.

Point b

“Accidentally used other than in accordance with the condition or nature and the purpose on which title is granted” in this provision means that the state/regional budget is limited to commercialize, use, or utilize in accordance with the condition or nature and the purpose on which title is granted.

Article 4

Section (1)

“Land with indication of abandoned land” means certified land or land with land tenure that is uncommercialized, unused, or unutilized in accordance with the condition or nature as well as the purpose on which title is granted or land tenure for which no identification and research have been conducted. To obtain data on land with indication of abandoned land, an inventory shall be made, the results of which shall be reported to the Head.

Section (2)

Sufficiently clear

Article 5

Sufficiently clear

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Article 6

Sufficiently clear

Article 7

Sufficiently clear

Article 8

Section (1)

The warning needs to state conclusive matters that are required of the Landholder and sanctions to impose if the Landholder fails to observe or heed the warning.

Section (2)

The second warning, with due regard to the progress of the first warning, shall restate conclusive matters that are required of the Landholder and sanctions to impose if the Landholder fails to observe or heed the warning.

Section (3)

The third warning, as the last warning, with due regard to the progress of the second warning, shall state conclusive matters that are required of the Landholder and sanctions to impose if the Landholder fails to observe or heed the warning.

Section (4)

Sufficiently clear

Section (5)

Sufficiently clear

Section (6)

Sufficiently clear

Article 9

Sufficiently clear

Article 10

Sufficiently clear

Article 11

Sufficiently clear

Article 12

Sufficiently clear

Article 13

Sufficiently clear

Article 14

Sufficiently clear

Article 15

Section (1)

State land of former abandoned land represents state’s public reserve land that is empowered in the public and state interest through the agrarian reform and strategic program and for the benefit of the state’s other reserves.

The agrarian reform is the land policy that includes organization of political and legal system of land as well as organization of public asset management and

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organization of public access to land in accordance with the spirit of Article 2 of Decree of the People’s Consultative Assembly of the Republic of Indonesia Number IX/MPR/2001 concerning the Agrarian Reform and Management of Natural Resources, and Article 10 of Law Number 5 of 1960 concerning Basic Regulations of Agrarian Affairs. Organization of public assets and organization of public access to land may be made through distribution and redistribution of state land of former abandoned land.

The state strategic program shall aim for, inter alia, the development of food, energy, and public housing sector to improve public welfare.

The State’s other reserves shall aim to, inter alia, meet the needs of land in the interest of the government, defense and security, needs of land as a result of natural disasters, relocation, and resettlement of communities affected by the development in the public interest.

Section (2)

Sufficiently clear

Article 16

Sufficiently clear

Article 17

Sufficiently clear

Article 18

Sufficiently clear

Article 19

Sufficiently clear

Article 20

Sufficiently clear

SUPPLEMENT TO STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5098

Translated by Wishnu Basuki wbasuki@gmail.com