Posts Tagged Agrarian Law
Granting and Registration of Mortgage of Land
Posted by admin in Property Law on August 22, 2011
Background
Mortgage (hak tanggungan) of land is a security right over right(s) of land, along with or without other properties that constitute a unity with such land, for the settlement of certain debts, which gives the preferred position to certain creditors against other creditors (“Mortgage”). In this regard, there are procedures for granting, registration and transfer of Mortgage as stipulated in Law Number 4 of 1996 on Mortgage of Land along with Properties Related to the Land (“Law 4/96”).
Granting of Mortgage
Granting of Mortgage is preceded by a promise or covenant to grant the Mortgage as the security of payment of certain debt, which is set out in and as an integral part of the related loan agreement or other agreements that cause such debt.
The granting of Mortgage is conducted by making the Deed of Granting of Mortgage by the Land Conveyancing Officer (“Pejabat Pembuat Akta Tanah/PPAT”) in accordance with the related prevailing laws and regulations. In the event that the object of the Mortgage is the right(s) of land which is derived from the conversion of the previous rights that have been eligible to be registered but the registration has not been done, the granting of Mortgage shall be conducted simultaneously with the application for the registration of such right(s) of land.
According to Article 11 of Law 4/96, a Deed of Granting of Mortgage must include: Read the rest of this entry »
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Legal Aspects of License for the Representative of Foreign Construction Legal Entities in Indonesia
Posted by admin in Building, Construction on March 14, 2011
According to the Regulation issued by State Minister for Public Works Number 28/PRT/M/2006 Year 2006 (“Minister Regulation”), it is allowed for the representative of foreign construction legal entities (“Foreign Entities”) to conduct their business in Indonesia after fulfilling some requirements.
Foreign entities mean the representative from construction legal entities that conduct its business in Indonesia which will be responsible for all actions taken by construction legal entities.
License
Article 2 of Minister Regulation states that before the Foreign Entities conduct their business in Indoneasia, it is required to obtain the License for the Representative of Foreign Construction Legal Entities in Indonesia (Izin Perwakilan Badan Usaha Jasa Konstruksi Asing) (“License”). Moreover, the License can be obtained after the Foreign Entities receive the classification and qualification in the form of certificate. After the Foreign Entities receive the License, those entities are able to provide their services and able to make an agreement with the third parties, which the agreement must be signed on behalf of the holding company. Moreover, the Foreign Entities are allowed to handle the high risk and/or high technology and/or high cost construction projects through joint operation. Read the rest of this entry »
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Illegal Occupancy of Land from the Criminal Perspective
Posted by admin in Right of Land, Summary of Regulations on February 28, 2011
The illegal occupancy of land is not a new event in Indonesia. The terms illegal occupancy can be interpreted as the act or condition of holding, possessing of rights or assets illegally, such as occupying a land or house, which is not belong to him, illegally (which is forbidden by law). The illegal occupancy of land is an unlawfully act that can be classified as a criminal offense. As we know, the prices of land are very stable and continue to rise along with the times. The illegal occupancy of land can be harming everyone, especially if the land is used for the business purpose. There are many cases that happened on the illegal occupancy of land, such as (i) physical occupancy of land, (ii) cultivation of land, (iii) sale of land, and so on.
Illegal Occupancy of Land from the Criminal Perspective
Article 2 of Law Number 51 PRP of 1960 on Prohibition to Using the Land without Obtaining the Permission from the Owner of the Land or the Authorized Person (the “Law No 51 PRP/1960”) stated that the utilization of land without obtaining the permission from the owner of the land or the authorized person of the land, shall be construed as the prohibited act, and shall be penalized of imprisonment for the maximum time of 3 (three) months, or a fine with the maximum amount of Rp. 5,000 (five thousand Rupiah), as stated in Article 6 of Law No 51 PRP/1960. Read the rest of this entry »
Requirements of Residences Ownership By Foreigners According to The Agrarian State Minister Regulation/Head of National Land Agency Number 7 of 1996
Posted by admin in Foreign Ownership, Summary of Regulations on June 21, 2010
This Agrarian State Minister Regulation explains about the requirements of residences ownership by foreigners, within the frameworks of the implementation of the Government Regulation Number 41 Of 1996 On Residences Ownership by the Foreigners Who Are Domiciled in Indonesia (the “GR No. 41 of 1996”). The Foreigners on GR No. 41 of 1996 are the foreigners who own and maintain the economic interests in Indonesia by implementing an investment to have a residential in Indonesia.
Residential ownership and how to obtain the right of land by the foreigners, are as follows:
- Purchase and build the residence on the Right to Use over a state land or the Right to Use over the Right to Own.
- Purchase the condominium which is built on the Right to Use over a state land.
- Purchase and build the residence on the Right to Own or the Right to Rent of the building which is based on written agreement with the owner of land.
The residence or condominium that can be purchased or built by the foreigners is residences or condominium that is not categorized as simple residences or very simple residences classification.
The acquisition of the right of land and/or residences and the Right to Own of Strata Title unit by the foreigners are carried out in accordance with the procedures according to statutory provisions applicable to the relevant legal actions. While the residences are not used by the foreigners, the residences can be rented by the company in Indonesia based on the agreement between the foreigners and the company.
Foreigners are obliged to release or transfer to the parties that are eligible in accordance with Article 6 paragraph 1 GR No.41 of 1996 when the foreigners or their family members do not use the residence for 12 (twelve) consecutive months.
Principle Provisions of Agrarian Law in Indonesia
Posted by admin in Summary of Regulations on April 20, 2010
Background
In December 1960, Indonesian Government declared the Law Number 5 of 1960 on the Principle Provisions of Agrarian (the “Agrarian Law”) as the principles legal provisions of land in Indonesia.
The Agrarian Law is the principle and basic provisions of the agricultural conditions which is the foundation for other land regulations. This includes the principles and the main issues of land. The Agrarian Law’s goal is to lay the foundation for developing a national land law, for unity and simplicity in the land law and to provide legal certainty about the rights over land for the people.
The Scope of Agrarian Law
The Agrarian Law is applicable for soil, water, and natural richness in it, even airspace within certain limits.
Rights of Control by the State
The earth, water, and airspace, including the natural resources contained therein, are controlled by the State. Because of that right, the State has the authority to do the following:
a) To regulate and administer the allocation, use, supply, and maintenance of the earth, water, and airspace;
b) To determine and regulate legal relationships between people and the earth, water, and airspace;
c) To determine and regulate legal relationships among people as well as legal acts concerning the earth, water, and airspace.
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