Posts Tagged Right to Build
The Legal Aspect and The Rules of The Right to Build
Background
Nowadays, there are various kind of companies established in Indonesia. In term of construction, these companies require a building located on a land. Therefore, according to Law Number 5 of 1960 on the Principle Provisions of Agrarian, there are several rights over land. One of these rights over land is the right to build which can be defined as the right to establish and own a building on a land. The Government Regulation Number 40 of 1996 develops and improves this right to build. The right to build can be given or imposed on state land, land submitted to the right of management, and land submitted to the right of ownership. The right to build can also be used as collateral for loans pledged with mortgage rights.
Allocation of Right to Build
According to the Article 19 of the Government Regulation Number 40 of 1996 describes that right to build is given to Indonesian citizen and legal entities established under Indonesian law and domiciled in Indonesia. The right to build isn’t given to foreigners and foreign entities, so according to article 39 of the Government Regulation Number 40 of 1996 for foreigners and foreign entities, they only have the right to use. The right to build can be granted for a period of 30 years and can be extended for another 20 years. The right to build is given by a decision of the Minister or by an officer appointed upon the recommendation of the management right holders, and have been registered in the book of land in the land office.
Condominium on the Land with Right to Build over the Land with Right of Management
Posted by admin in Building, Property Law, Right to Manage on March 22, 2011
Background
Article 7 paragraph (1) and (2) of Law Number 16 of 1985 on Condominium, the developer (the “Developer”) may build a condominium over the land with Right of Management (Hak Pengelolaan) (“HPL”). HPL is a right to control, given by the state which the implementation is delegated to its holder. Rights of land that may be granted over the HPL land are Right to Build (Hak Guna Bangunan) (“HGB”) and Right of Use (Hak Pakai) (“HP”). The Developer is obligated to complete the HGB or HP status of the land prior to the initial offer of any property over the land, in accordance with the prevailing laws and regulation. Therefore, the Developer must be aware of the procedure of the obtaining of such rights and other requirements related to HGB and HP over HPL land, which is set out in the Government Regulation Number 40 of 1996 (“GR 40/1996”) and State Minister of Agrarian/Chief of National Land Agency Regulation Number 9 of 1999 on Procedure of the Granting of Rights of Land and Revocation of Right of State Land and Right of Management (“Regulation 9/1999”). Read the rest of this entry »
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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