Procedures and Requirements for Commanding Non-Tax State Revenue Rates to Certain Parties

Introduction

Land Acquisition in the framework of investment is particularly regulated by Decree of State Minister for Agrarian Affairs/ Head of the National Land Agency Number 21 of 1994 on Procedures of Land Acquisition for Company in the Framework of Investment (“Kepmenag No.21/1994”).

Land acquisition is any activity conducted in order to acquire a land by transfer of rights or by delivery or relinquishment of right of land through compensation to the beneficiary. Company may conduct land acquisition in area as determined by location permit. Land acquisition in the framework of implementation of location permit may be conducted through (i) transfer of right or (ii) by delivery or (iii) relinquishment of right of land, followed by granting of right.

Land acquisition in the framework of investment deriving from Right of Ownership (“Hak Milik/HM”) may be conducted as follows:

At the request or application of right holder or their proxy, HM may be converted into HGB. The application of right conversion is submitted to the Head of Land Office by enclosing a form, certificate of HM, or if that HM has not been certificated, it requires necessary evidences to register the conversion of HM.

For the certificated HM, within 3 (three) days after the application is accepted, the Head of Land Office will issue instruction to deposit and within 7 (seven) days after the proof of deposit is accepted, the conversion status of right of land is recorded in the relevant HM’s book of land and its certificate, as well as other public register, while a new certificate and book of land are made for the HGB.

Moreover, for the uncertificated HM, within 10 (ten) working days after the application is accepted, the Head of Land Office will complete the inventory regarding the land and set an announcement. Afterwards, within 3 (three) working days after the period of announcement and where there is no objection, the Head of Land Office will issue an instruction to deposit and within 7 (seven) days after submitting the proof of deposit, the conversion of right is conducted by making a book of land and certificate of HGB.

Furthermore, the transfer of HGB is conducted with the deed of Land Conveyancing Officer (Akta PPAT) and is recorded in the book of land and its certificate, as well as other public register. A location permit is valid as a permit of transfer of right as well as a permit of issuance of landreform object and other permit which is according to the prevailing provisions required in the transfer of HGB over a state land.

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Ferina Tyas Hapsari

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Procedures and Requirements for Commanding Non-Tax State Revenue Rates to Certain Parties
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