Introduction
In relation to the process of land title registration in Indonesia, the Indonesian Government has enacted Government Regulation No. 24 of 1997 on Land Registration, as amended by Government Regulation No. 18 of 2021 (“GR 24/1997”). Within this regulation’s regime, newly granted land rights are evidenced by a determination of land rights issued by the Ministry of Agrarian Affairs, which decree serves as the legal basis for the registration of land rights.
In relation to the enforcement of GR 24/1997, the Indonesian Government has enacted the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (“MoASP”) Regulation No. 5 of 2025 on the Delegation of Authority for the Determination of Land Rights and the Implementation of Land Registration Activities, as amended by MoASP Regulation No. 9 of 2025 (“MoASP 5/2025”), which revoked MoASP Regulation No. 16 of 2022, as amended by MoASP Regulation No. 2 of 2025 (“MoASP 16/2022”). MoASP 5/2025 currently regulates provisions concerning the delegation of authority for the determination of land rights.
Through such revocation, MoASP 5/2025 was enacted with the following objectives:
(i) to reorganize the delegation of authority based on the size of land parcels; (ii) to provide a detailed classification of regions according to regional categories; and (iii) to regulate specific delegations of authority applicable to the Batam Free Trade Zone and Free Port and the Nusantara Capital City Area (Ibu Kota Nusantara/ “IKN”).
The primary objectives of the issuance of MoASP 5/2025 are to enhance the efficiency of land administration services for the public and to facilitate investment, particularly in Batam Free Trade Zone, Free Port, and IKN.
This publication will provide summary of the key regulations under MoASP 5/2025.
Implementation of the Delegation of Authority for the Determination of Land Rights under MoASP 5/2025
In principle, the authority to land rights determination and land registration activities rests with the Minister. However, MoASP 5/2025 provides for the delegation of such authority to lower levels of government.
Upon the granting of such delegation, the authority is transferred to the relevant lower level of government, together with all accompanying responsibilities and liabilities. Accordingly, there are specific limitations relating to the land object and the subject entitled to land rights that must be observed in the implementation of such delegation, as set out below:
| Director General | Regional Office (Kantor Wilayah) | Land Office (Kantor Pertanahan) |
| Right of Ownership (Hak Milik) | ||
| N/A | Determination of decisions on the Right of Ownership: for individual persons over agricultural land with an area exceeding 50,000 m2 and not exceeding the maximum limit of individual agricultural land ownership;for individual persons over non-agricultural land with an area exceeding 5,000 m2 up to 15,0000 m2; andownership rights for religious bodies and/or social legal entities that have been designated pursuant to Government Regulation No. 38 of 1963 on the Designation of Legal Entites Eligible to Hold Right of Ownership over Land, with a land area of up to 50,000 m2. | Determination of decisions on the Right of Ownership: for individual persons over agricultural land with an area of not more than 50,000 m2;for individual persons over non-agricultural land with an area of not more than 5,000 m2; andownership rights over land in the context of the implementation of: (a) transmigration; (b) land redistribution; (c) land consolidation; and (d) other programs financed by the state budget and/or regional budgets. |
| Right to Cultivate (Hak Guna Usaha) | ||
| Grant of the Right to Cultivate to legal entities over state land or land under the Right to Manage (Hak Pengelolaan), subject to the following conditions: on the islands of Java and Bali, with a land area exceeding 2,500,000 m2 up to 5,000,000 m2; andoutside the islands of Java and Bali, with a land area exceeding 5,000,000 m2 up to 10,000,000 m2. | Grant of Right to Cultivate to legal entities over state land or land under the Right to Manage, subject to the following conditions: on the islands of Java and Bali, with a land area up to 2,500,000 m2; andoutside the islands of Java and Bali, with a land area up to 5,000,000 m2. | Grant of the Right to Cultivate to individual persons over state land or land under the Right to Manage, with a land area ranging from 50,000 m2 up to 250,000 m2. |
| Right to Build (Hak Guna Bangunan) | ||
| Grant of the Right to Build to legal entities over state land or land under the Right to Manage, with a land area exceeding 250,000 m2 up to 1,000,000 m2. | Grant of the Right to Build to: individual persons over state land or land under the Right to Manage, with a land area exceeding 10,000 m2 up to 20,000 m2; andlegal entities over state land or land under the Right to Manage, with a land area exceeding 30,000 m2 up to 250,000 m2. | Grant of the Right to Build to: individual persons over state land or land under the Right to Manage, with a land area of up to 10,000 m2;legal entities over state land or land under the Right to Manage, with a land area of up to 30,000 m2; andlegal entities in the context of the implementation of housing development for low-income communities. |
| Right to Use (Hak Pakai) | ||
| Grant of the Right to Use to legal entities over state land or land under the Right to Manage, with a land area exceeding 250,000 m2 up to 1,000,000 m2. | Grant of the Right to Use to: individual persons over state land or land under the Right to Manage for agricultural land, with a land area exceeding 50,000 m2 up to 250,000 m2;individual persons over state land or land under the Right to Manage for non-agricultural land, with a land area exceeding 10,000 m2 up to 20,000 m2; andlegal entities over state land or land under the Right to Manage, with a land area exceeding 30,000 m2 up to 250,000 m2. | Grant of the Right to Use to: individual persons over state land or land under the Right to Manage for agricultural land, with a land area of up to 50,000 m2;individual persons over state land or land under the Right to Manage for non-agricultural land, with a land area of up to 10,000 m2;legal entities over state land or land under the Right to Manage, with a land area of up to 30,000 m2; andright to use granted for as long as the land is utilized by central government institutions, regional governments, village governments, foreign state representatives, and representatives of international organizations. |
In addition to the foregoing, please also note that MoASP 5/2025 regulatesspecific provisions governing the determination of land rights, among others, Right to Build and the right to use within the Batam Free Trade Zone and Free Port and the IKN. Different approach will be used for the determination of Right to Build in Batam Free Trade Zone and Free Port and IKN.
- Batam Free Trade Zone and Free Port, the Head of Regional Office will have an authority for:
- the determination of Right to Build for legal entities over state land with an area exceeding 30,000 m² up to 250,000 m²; and
- the determination of Right to Build for legal entities over land under the Right to Manage with an area exceeding 1,000,000 m² up to 2,000,000 m².
- IKN:
- for land parcels within the IKN, the Head of the Regional Office is authorized to issue all determinations of Right to Build for legal entities over land subject to the Right to Manage of the IKN.
Amendments to the Delegation Provisions for the Determination of Land Rights
With respect to the determination of land rights, MoASP 16/2022 delegated the authority to determine land rights solely to the Regional Office of National Land Agency or the Land Office. By contrast, under MoASP 5/2025, the delegation of authority to issue determinations of land rights is expanded by introducing a new delegated authority, namely the director general responsible for land rights determination and land registration.
The inclusion of the director general as an additional delegated authority affects the permissible size of land parcels for which registration and determination may be granted – and as such allows for a clearer path for parties to register and obtain rights over their land.
Conclusion
GR 24/1997 affirms that land rights only come into existence upon the issuance of a grant of rights by the competent authority as the legal basis for land registration. To implement this provision, MoASP Regulation 5/2025 reorganizes the delegation of authority for the determination of land rights based on land area, regional classification, and specific regimes applicable to the Batam Free Trade Zone and Free Port Area as well as the IKN. Accordingly, MoASP Regulation 5/2025 provides legal certainty and clarity regarding the limits of authority in the determination of land rights, while simultaneously strengthening the effectiveness of land registration implementation. By expanding the authority for the issuance of land certificates (through delegation by the Minister), it is anticipated that the timeline for the administration of such certificates will be shortened, thereby potentially stimulating investment in Indonesia.
For Further Information, Please Contact:
MetaLAW, Legal Consultant, Jakarta, Indonesia
general@metalaw.id
