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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