Indonesia Real Estate Law – Guidance for Completion of Land Possession Previously Owned by Dutch Citizen or Dutch Legal Entity

land dutchBackground

Under the Law Number 3 Prp of 1960, lands that were owned by Dutch citizens and have not been nationalized under Law Number 86 of 1958, is controlled by the state and will be granted to the rights holder through sale and purchase (“P3MB”). Further, under the Presidium Cabinet of Dwikora Regulation Number 5/Prk/Year 1965, all buildings and lands owned by Dutch legal entities and have been abandoned by their directors/management is controlled by the state, and can be sold to the qualified rights holder (“Prk5”).

In reality, there are still P3MB and Prk5 lands (“Land”) that are not yet registered but has been transferred to other parties, either to individual or legal entity. Considering the above mentioned issues, the Minister of Agrarian and Spatial/Head of the National Land Agency issued the Minister of Agrarian and Spatial/Head of the National Land Agency Regulation Number 20 of 2016 (“Permenag 20/2016”), as a guidance for the completion of land possession and giving legal certainty to the receiver of the Land rights.

Land Rights Application Procedures

The Land will be granted to the rights holder based on the appointment from the government, according to the priority as follows:

  1. civil servants (PNS); and/or
  2. people.

For the application of Land rights, the appointed party or last rights holder submits the application (“Application”) by paying a sum amount of money for the registration to the government. The application is submitted to the Minister of Agrarian and Spatial/Head of the National Land Agency (“Minister”) through the land office located in the area of Land.

Documents of Application

The Application is submitted along with the required documents as follows (“Documents”):

  1. copy of applicant’s identity or its proxy (identity card or family card) which has been verified by the counter service officer;
  2. copy of article of association, if the applicant is a legal entity;
  3. power of attorney, if the application is submitted by the proxy;
  4. application letter through the head of P3MB/Prk5;
  5. letter of land information;
  6. occupation permit from the housing department;
  7. information from immigration institution on the nationality of the previous owner of P3MB;
  8. information from the regional office of the Directorate General of Taxation, if the Land is Prk5;
  9. the basis of Land acquisition/occupancy;
  10. evidence of announcement by the Applicant in 2 daily newspapers within 30 days period from the announcement day;
  11. copy of Notification Letter of Tax Payable of the Land and Building Tax in the current year, which has been verified by the counter service officer;
  12. statement letter stating that the Applicant is able to pay the appraised value of land and building; and
  13. statement letter stating that the Applicant has never acquired land/house from the government.

After the Documents fulfil the requirements, the head of land office (“Head Office”) orders the responsible officer (“Head Office Officer”) to measure the Land.

Land Measurement

Based on the Land measurement by the Head Office Officer, the Head Office will issue the information letter of land registration and Documents to head of regional office of the National Land Agency (“Head of Regional Office”). After obtaining the documents, the Head of Regional Office orders the A Committee to conduct site inspection and examine the documents. The A Committee prepares the minutes of data processing from the result of site inspection and examination of documents (“Minutes of Data”).

Determination of Appraised Price

In order to determine the appraised price, the Head of Regional Office shall establish the appraisal committee consists of:

  1. appraiser from the ministry who is responsible in finance affairs; and
  2. elements of civil servants appointed by the governor or mayor/regent.

The appraisal committee is responsible to appraise the Land price (with buildings, if any). The results of appraisal shall be made in the minutes of appraised price (“Minutes of Appraised Price”).

The Head of Regional Office submits the report to the Minister along with the Documents, Minutes of Data, and Minutes of Appraised Price. The Minister orders the related director general to review the Documents, Minutes of Data, and Minutes of Appraisal Price. After the review, the Minister will issue a decree for granting the Land rights or reject the Application.

If the Minister grants the Land rights, then the applicant must pay the Land price according to the Minutes of Appraised Price.

Registration of Land Rights

Following the decree from the Minister, the applicant shall register the Land rights to the land office for obtaining the certificate of Land rights, by attaching the documents as follows:

  1. proof of payment; and
  2. decree on granting of Land rights.

The completion of Land registrations is conducted within 5 (five) years from 11 May 2016. If the period has expired but there is still Land that has not yet registered and granted its right, then the Land shall automatically become state land.

Land Settlement Committee

The Minister may establish the Land settlement committee, consisting of:

  1. Head of Regional Office, as a chairman and also member;
  2. Head Office, as a member; and
  3. elements of civil servants appointed by the governor or the mayor/regent, as a member.

The tasks of land settlement committee are:

  1. inventory the Land;
  2. verify and identify the Land:
  3. notifying the party who is controlling the Land to submit the Application; and
  4. compile reports of Land.

Alam Setya

Please contact us at query@lekslawyer.com if you need further information on Guidance for Completion of Land Possession Previously Owned by Dutch Citizen or Dutch Legal Entity

Did you like this? Share it:

Indonesia Real Estate Law – Guidance for Completion of Land Possession Previously Owned by Dutch Citizen or Dutch Legal Entity
0 votes, 0.00 avg. rating (0% score)

Comments are closed.