Laws and Regulations for Private Islands

Private Island Laws and Regulations

For those keen research types looking for specific laws, regulations and decrees that govern foreign investment in land, the following are a summary list of those most relevant. Please note this list is by no means exhaustive, but covers the basics of the regulatory frameworks under which foreigners may invest and utilise land.

Regardless of the amount of research you wish to undertake, it is, at all time, strongly recommended that you engage subject matter experts, legal advisors and consultants that can take into account your personal circumstances and investment plans in order to guide you to make the right investment decisions.

It’s crucial to note that the regulations and restrictions on foreign investment in land are subject to change, and new laws or amendments may be introduced. Therefore, it’s advisable to consult with legal experts, investment advisors, or government agencies such as BKPM or the National Land Agency (BPN) to obtain the most up-to-date and accurate information regarding foreign investment in land in Indonesia.

Agrarian Law (Law No. 5 of 1960): This law is the fundamental legislation governing land in Indonesia. It establishes the principles of land ownership, land rights, and land use. It distinguishes between different land titles, such as Hak Milik (Right of Ownership) and Hak Guna Usaha (Right to Cultivate), which have different restrictions on foreign ownership.
Presidential Regulation No. 103 of 2015: This regulation regulates land ownership by foreigners in Indonesia. It sets forth specific requirements and conditions for foreigners to acquire land, including restrictions on land size, purpose of use, and location. It also stipulates that foreign investors can acquire Hak Guna Usaha (HGU) or Hak Pengelolaan (Management Rights) for specific purposes, subject to approval from relevant authorities.
Investment Law (Law No. 25 of 2007): This law governs foreign direct investment in Indonesia. It outlines the general principles, procedures, and incentives for investment, including provisions related to land use rights for foreign investors. It empowers the Investment Coordinating Board (BKPM) to facilitate and regulate foreign investment activities.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 13 of 2016: This regulation provides more specific guidance on land ownership by foreigners. It outlines the procedures, requirements, and restrictions for obtaining HGU or Management Rights for foreign investment purposes.
Government Regulation No. 24 of 1997: This regulation governs the procedures and requirements for granting Hak Guna Usaha (Right to Cultivate) to foreign investors for agricultural activities.
Government Regulation No. 103 of 2000: This regulation establishes provisions for the conversion of Hak Guna Usaha (Right to Cultivate) into Hak Milik (Right of Ownership) for foreign investors.
Presidential Regulation No. 36 of 2010: This regulation sets the criteria and procedures for granting land for the development of Special Economic Zones (SEZs), including provisions for foreign investment.
Law No. 40 of 2007: This law regulates limited rights to land, including Hak Pakai (Right to Use) for foreign individuals married to Indonesian citizens.
Government Regulation No. 10 of 1961: This regulation sets forth the procedures and requirements for the issuance of Hak Pakai (Right to Use) for foreign individuals married to Indonesian citizens.
Law No. 5 of 1990: This law governs the Conservation of Biological Resources and their Ecosystems, including provisions for land use and protection.
Law No. 26 of 2007: This law regulates spatial planning in Indonesia and outlines the principles, mechanisms, and procedures for land use planning and zoning.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 13 of 2017: This regulation establishes guidelines for granting Hak Pakai (Right to Use) to foreign individuals for residential purposes.
Presidential Regulation No. 13 of 2020: This regulation provides guidelines for the implementation of the Online Single Submission (OSS) system, which streamlines and simplifies the business licensing process, including for foreign investment in land.
Government Regulation No. 14 of 2021: This regulation sets the requirements and procedures for the utilization of state land, including provisions for foreign investment.
Law No. 26 of 2006: This law governs the Geospatial Information System and establishes provisions for the management and utilization of geospatial data, including land-related information.
Law No. 41 of 1999: This law governs forestry in Indonesia and regulates the utilization and protection of forest areas, including restrictions on land use and ownership.
Minister of Environment and Forestry Regulation No. 17 of 2019: This regulation establishes procedures and requirements for the issuance of forest area utilization licenses for specific purposes, including for foreign investment.
Presidential Regulation No. 66 of 2020: This regulation sets forth provisions for the acceleration of agrarian reform, including land redistribution and utilization for agricultural development.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 11 of 2016: This regulation governs the procedures and requirements for land consolidation and land bank development, including provisions for foreign investment.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 15 of 2019: This regulation provides guidelines for the issuance of land registration certificates, including provisions for foreign-owned land.
Government Regulation No. 44 of 1994: This regulation governs land concessions for plantations, including provisions for foreign investment and land utilization.
Government Regulation No. 95 of 2012: This regulation sets the criteria and procedures for the issuance of land-use permits for small-scale mining activities, including provisions for foreign investment.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 6 of 2018: This regulation provides guidelines for the conversion of land rights, including Hak Guna Bangunan (Right to Build)
Government Regulation No. 88 of 2017: This regulation governs the utilization of abandoned land, including provisions for foreign investment and revitalization of abandoned areas.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 30 of 2020: This regulation establishes guidelines for land acquisition for public interests, including provisions for foreign investment and compensation.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 13 of 2021: This regulation provides guidelines for the issuance of land use permits for oil palm plantations, including provisions for foreign investment and land utilization.
Law No. 25 of 2004: This law regulates the national spatial planning system and establishes provisions for the management and utilization of land resources, including restrictions on foreign ownership and investment.
Presidential Regulation No. 95 of 2020: This regulation sets the criteria and procedures for granting land for infrastructure development projects, including provisions for foreign investment.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 10 of 2019: This regulation provides guidelines for land utilization for industrial estates, including provisions for foreign investment and land acquisition.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 17 of 2020: This regulation governs land acquisition and utilization for tourism purposes, including provisions for foreign investment and land lease.
Government Regulation No. 12 of 2019: This regulation sets the criteria and procedures for granting land for housing development projects, including provisions for foreign investment and land acquisition.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 11 of 2020: This regulation provides guidelines for the issuance of land use permits for energy and mineral resources activities, including provisions for foreign investment and land utilization.
Government Regulation No. 65 of 2021: This regulation governs land bank management, including provisions for foreign investment and land utilization.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 25 of 2021: This regulation establishes guidelines for the issuance of land use permits for forestry purposes, including provisions for foreign investment and land utilization.
Presidential Regulation No. 79 of 2010: This regulation sets the criteria and procedures for granting land for public purposes, including provisions for foreign investment and land acquisition.
Government Regulation No. 68 of 2016: This regulation governs land acquisition for defense and security purposes, including provisions for foreign investment and land utilization.
Minister of Agrarian Affairs and Spatial Planning Regulation No. 7 of 2019: This regulation provides guidelines for the issuance of land use permits for fisheries purposes, including provisions for foreign investment and land utilization.
Government Regulation No. 24 of 2016: This regulation sets forth provisions for the implementation of the One Map Policy, aiming to ensure accurate and unified spatial data management, including land-related information.

Please note that laws and regulations are subject to change, and it’s essential to consult with legal professionals or relevant government authorities to ensure compliance with the most current regulations regarding foreign investment in land in Indonesia.