Government Regulation RI No. 11/2010 concerning the control and utilization of neglected land

&A CONTROL AND UTILIZATION OF NEGLECTED LAND (Government Regulation RI Number 11 Year 2010, dated January 22, 2010) WITliTHEBLESSINGOFTHEONEANDONLYGOD PRESIDENT OF THE REPUBLICOFINDONESIA, Considering: a. that under Article 27, Article 34, and Article 40 Law Number 5 Year 1960 concerning Regulation of Agrarian Main Basis, extint right to land due to negligence. b. that at present neglected land is causing big ger gap in social, economy, and welfare of the people and degrading the quality of the environment, so that it is necessary to re arrange control and utilization of the ne glected land; c. that Government Regulation Number 36 Year 1998 concerning Control and Utilization of Ne glected Land, can no longer constitute as refer Business News 8003/9-6-2010 ence for settlement and control and utilization of neglected land so that replacement shall be necessary; d. that based on the consideration referred to in letter a, letter b, and letter c, it is necessary to stipulate Government Regulation concerning Control and Utilization of Neglected Land; Inviewof: 1. Article 5 paragraph (2) the 1945 Constitution of the State of of the Republic of Indonesia Year 1945 {BN No. 7:l.52page :l.4A}; 2. Law Number 5 Year 1960 concerning Regulation of Agrian Basic Pricinpals (Statute Book of the Republic of Indonesia Year 1960 Number 104, Supplement to Statute Book of the Republic of Indonesia Number2043); 3. Law-...... 3. Latvfumber 4 Year 1996 concerning Pledge of Land and Property related to the Land {Statute Book of the Republic of Indonesia Year 1996 Number 42, Supplement to Statute Book of the Republic of Indonesia Number 3632); 4. Law Number 41 Year 1999 {SN No. 6412 pages 1A-6A and so forth} concerning Forestry (Stat ute Book of the Republic ofindonesia Year 1999 Number 167, Supplement to statute Book of the Republic ofindonesia Number 3888); 5. Law Number l Year 2004 {SN No. 7042 pages 3AS-19A and so forth} concerning State Trea sury (Statute Book of the Republic of Indonesia Year 2004 Number 5, Supplement to Statute Book of the Republic of Indonesia Number 4355); 6. Law Number 18 Year 2004 {SN No. 7152 pages 2A-l3A and so forth} concerning Plantation 1'.Statute Book of the Republic of Indonesia Year 2004 Number 84, Supplement to Statute Book of the Republic of Indonesia Number 4411); 7. Law Number 32 Year 2004 {SN No. 7183 pages 1A-11A andsoforth}concerning Regional Gov ernment (Statute Book of the Republic of Indo nesia Year 2004 Number 125, Supplement to Statute Book of the Republic of '.lndonesia Num ber 4437), as lately amended by Law Number U Year 2008 concerning Second Amendment to Law Number 32 Year 2004 concerning Re gional Administration (Statute Book of the Re public of Indonesia Year 2008 Number 59, Supplement to Statute Book of the Repablic of Indonesia Number4844); 8. Law Number 26 Year 2007 {SN No. 7599 pages 10A-30A and so forth} concerning Space Lay out (Statute Book of the Republic of Indonesia Year 2007 Number 68, Supplement to Statute Business News 8003/9-6-2010 7A Book of the Republic of Indonesia Number4725); 9. Law Number 41 Year 2009 concerning Continu ous Protection of Agricultural Land (Statute Book of the Republic of Indonesia Year 2009 Number 149, Supplementto Statute Book of the Republic of Indonesia Number 5068); 10. Government Regulation Number 40 Year 1996 concerning Right to Use for Business, Right to Construct Building, and Right to Use {Statute Book of the Republic of Indonesia Year 1996 Number 58, Supplementto Statute Book of the Republic of Indonesia Number 3643); 11. Government Regulation Number 38 Year 2007 concerning Distribution of Adminsitration Affairs Between the Government, Regional Administra tion of Province, and Regional Administration of Regency/ Municipality ( Statute Book of the Re public of Indonesia Year 2007 Number 82, Supplement to Statute Book of the Republic of Indonesia Number4737); DECIDES: To stipulate: GOVERNMENTREGUIATIONOONCERNINGCXlNTROLAND UTIUZATIONOFNEGt£CTEDLAND. CHAPTERI GENERAL PROVISION Article l What is meant in this Government Regula tion by: 1. ownership Right, Right to Use for Business, Right to Contruct Building, and Right to Use shall be right to the land referred to in Law Number 5 Year 1960 concerning Regulation on Agrarian Basic Prinpals. 2. Right. ..... 2. Right to Manage shall be Right to Control by the State which authority to implement it is partly delegated to the holder thereof. 3. The basis for control of the land shall be license/ decision/ certificate from the competent author ity constituting the basis for the person or legal entity to control, use, or utilize the land. 4. The Holder of Right shall the holder of right to land, holder of Right to Manage, or holder of li cense/ decision/ certificate from the competent authority constituting the basis for control of the land. 5. Head shall be Head of National Land Affai~s of the Republic of Indonesia. 6. Head of Office shall be Head of Office of National Land Affairs of the Region. CHAPTl:RII OBJECT OF CONTROL OF NEGLECTB> LAND Article 2 The object of control of neglected land shall cover the land that is granted the right by the State in the form of Ownership Right, Right to Use for Business, Rightto Construct Building, Right to Use, and Right to Manage, or the basis for control of the land not exploited, not used, or not utilized accord ing to the condition of the land or the nature and objective of granting the right or basis for its ex ploitation. Article 3 Not included as object of control of neglected land referred to in Article 2 shall be: a. land with Ownership Right or Right to Use for Business in the name of individual person which without intention is not used according to the condition or nature and objective of grant of right thereto; and Business News 8003/9-6-2010 BA b. land controlled by the government either directly or indirectly and either having status or no sta tus yet as Asset of the State/Region that is unintentionally not used according to the con dition or nature and objective of grant of right thereto. CHAPTERm IDENTIFICATIONANDIIIIIIESTIGATION Article 4 (1) The Head of Regional Office shall prepare data of the land indicated neglected. (2) Data of the land referred to in paragraph (1) as the basis for identification and investigation. Article 5 (1) The identification and examinatiomeferredto in Article 4 paragraph (2) shall be conducted by a Committee. (2) Composition of members of the Committee re ferred to in paragraph (1) consists of elements of National Land Affairs Body and elements of relevant agency as governed by the Head. Article 6 (1) The identification and examinationreferred to in Article s·paragraph (1) shall be conducted: a. effective as of three (3) years after the Right of Ownership, Right Use for Business, Right to Use; or b. effective as of expiry of the license/ decision/ certificate constituting the basis for exploi tation of the land obtained from the compe tent authority. (2) The identification and examinationof neglected land shall cover: a. the ...... a. the name and address of the Holder of Right; b. the location, area, status of right or basis for exploitation of land and the land physical condition controlled by the Holder of Right; and c. the condition causing the land to be ne glected. Article 7 (1) The identification and examination activities re ferred to in Article 6 shall cover: a. verification and phy.sical da~ and juridicial data; b . . checking the land book and/ or certificate and other document to ,,erceive of any existence of mortgage, including data, plan, and phases of use and utilization of the land at applica tion for right; c. request for information from the Holder of Right and other related parties, and the Holder of Rigfit and related parties must give the required information or data; d. conducting physical examination; e. conducting ploting of the site of the use and utilization of land on the land map; f. make analysis on the cause of neglected land; g. prepare report on the result of identification and examination; h. holding Committee meeting; and i. draw up Minutes of Meeting. (2) The Committee shall submit report on the result of identification, examination, and Minutes of Meeting referred to in paragraph (1) to the Head of Regional Office. CHAPTERIV REMINDER Article 8 (1) If based on the result of identification and ex .amination referred to in Article 7 paragraph (2} Business News 8003/9-6-2010 9A it is concluded that there exist neglected land, the Head of Regional Office shall notify and at the same time make first written reminder to the Holder of Right, so that within one (1) month as of the date the reminder is made, to use the land based on the condition or nature and ob jective of grant of right or according to the li cense/ decision/ certificate constituting the ba sis for its exploitation. (2) If the Holder of Rightfails to implement the re minder referred to in paragraph (1), the Head of Regional Office shall make the second writ ten reminder with the same term as that of the first reminder. {3) If the Holder of Right fails to comply with the reminder referred to in paragraph (2), the Head of Regional Office shall make the third written reminder with the same term as that of the sec ond reminder. (4) The reminder referred to in paragraph (1), para graph (2), and paragraph (3) shall be reported by the Head of Regional Office to the Head of Office. (5) In the event that the land referred to tin para graph (1), paragraph (2), and paragraph (3) bearing the Right to Pledge, then the reminder letter shall also be notified to the Holder of Pledge. (6) If the Holder of Right still fails to comply with the reminder referred to in paragraph (3), the Head of Regional Office shall propose tD the Head of Office to decide the land concerned as ne glected land. CHAPTERV DECESIONOVERNEGLECTEDLAND Article g (1) The Head shall determine neglected land against the land proposed by the Head of Regional Of fice referred to Article 8 paragraph (6), (2) If ....... (2) If the land to be determined as neglected land is land bearing right as referred to in Artide 6 paragraph ( 1) letter a, determination of ne glected land as referred to in paragraph ( 1) shall also state determination of elimination of the right to the land, and at the same time termi nate the legal relationship and shaft confirm land under the direct c:ontrol of the state. (3) If the land to be determined as neglected land is the land that been granted the basis for con trol as referred to in Article 6 paragraph (1) letter b, the determination of neglected land referred to in paragraph (1) must also contain elimination of legal relation and confirmation as the land under control of the state. Article 10 (1) The land is determined as neglected land as re ferred to in Artide 9 paragraph (1), if it is the entire spread out land, then the right to the land is eliminated, the legal relation thereof is elimi nated, and confirmed as land under control of the state. (2) The land determined as neglected land as re ferred to in Artide 9 paragraph (1), if the en tire spread out land is neglected, then the right to the land must be eliminated, the legal rela tion thereof must be eliminated, and confirm as the land under direct control of the state and further the former Holder of Right shall be granted right again to part of the land that is actually exploited, used, and utilized according to the decision on the grant of right thereto. (3) To obtain right to land over part of the land re ferred to in paragraph (2), the former Holder of Right may submit application for right to land according to the provisions in the statutory regulation. Business News 8003/9-6-2010 lOA Artidell (1) lftheland bearingrightls~isless orequivalentto 250/o,(twenty-fiveparcent) ... Holder of Right may•submitapplic:ationfor ..., sion of the area of a plot of land that ls actuallt used and utilized ac:conllng to the decision tllr grant of rigllt thereof. (2) The cost for revision for reduction of area of land referred to in paragraph ( 1) shall be borne by the Holder of Right. Artide12 (1) The land proposed to be determined neglected land, declared as having status quo condition as of the date of the proposal as 1eferred to in Article B paragraph ( 6). (2) The land declared as having status quo condi tion as referred to in paragraph (1), no legal action may be taken to such land until decision over the neglected land ii issued, which also shall state determination of elimination of the right to land, at the same time eliminate tile legal re lation and confirm as land under control of the State. Artlde13 (1) The land that has been determined as neglected land, within a period of one (1) month as of the date it is decided as neglected land, must be vacated by the former Holder of Right from all properties on the land on account of the party concemed. (2) If the former Holderof Rightfallstocomply with . the obligation referred to in paragraph (1 ), then all the properties on the land shall no lon .. r belong to the party concerned, and the land shall automatically under the direct control of the State. Article 14 ....... 11A Article14 Further provision on the procedure for or derly control is governed in Regulation of the Head of Region. CHAPTERVI Ullll7AllON FORMERNEGLECIEDlAND UNDERCONTROLOFTHESfATE ArtidelS ( 1) Allocation for exploitation, ownership, use, and utilization of former neglected and now con trolled by the State as referred to in Article 9 paragraph (1) shall be utilized for the State and public interest by means of Agrarian restruc turing and State strategic program for other reserve by the State. (2) Allocation and arrangement of allocation for exploitation, ownership, use, and utilization of State controlled former neglected land as re ferred to in paragraph (1) shall be implemented by the Head of the Region. Article 16 No permit/decision/certificate in any form may be issued for the land referred to in Article 15 paragraph (1) pertaining to its control and use other than that determined in Article 15. Article 17 Orderly ·control of neglected land and utili zation of former neglected land shall be implemented by the Head of Region and the result thereof must be reported-periodically to the President. QIAPJERVII TRANSlllONALPROVISlON Artide18 By the time this Government Regulation Buslne11SMews8003/9-6-2010 comes to force, the land identified or given reminder as neglected land based on Government Regulation Number 36 Year 1998 concerning Orderly Control and Utilization of Neglected Land, follow-up action shall be taken within three (3) months in accordance with this Government Regulation. CHAPTERVDI Q.OSINGPROVISION Article 19 By the time this Government Regulation comes to force, Government Regulation Number 36 Year 1998 concerning Orderly Control and Utiliza tion of Neglected Land and its implementation regu lation shall be revoked and declared null and void. Article 20 This Government Regulation takes effect on the date it is enacted. For public cognizance, this Government Regulation shall be announced by pladng it in the Statute Book of the Republic of Indonesia. Enacted in Jakarta On January 22, 2010 PRESD>ENTOFTHE REPUBLICOFINDONES[A, sgd. DR.H. SllSD 0BAMBANGYUDHOYONO Enacted in Jakarta On January 22, 2010 MINISTER OF LAW AND HUMAN RIGHTS lHEREPUBUCOFINDONESIA, ttd. PA11WU.ISAKBAR STATUTEBOOKOFTHEREPUBLICOFINDONESIA YEAR 2010 NUMBER 16 ELUCIDATION .... ELUCIDATION OF GOVERNMENT REGULATION OF THE REPUBUC OF INDONESIA NUMBER 11 YEAR 2010 CONCERNING ORDERLY CONTROL AND UTILIZATION OF NEGLECTED LAND 1 GENERAL 12A land shall be gift from the One and Only God for the people, nation and the state of Indone sia, that must be exploited, utilized, and u.sed for the maximum welfare of the people. At present land that is controlled and/ or owned either that already has the right to land or some new lands acquired in some places are still neglected, so that the noble aspiration to improve the people's welfare is still not to optimum yet. Accordingly, it is necessary to initiate rearrangement in or der to accomplish land as the source of the people's welfare, in order to accomplish more righteous, secure sustainable system for the Indonesian people and nation, and to strengthen sodalharmony. Besides, to optimize exploitation, use, and utilization of all the land in the Indone sian territory, it is necessary to improve quality of the environment, minimize poverty and cre ate working opportunity, and improve defense on food and energy. Neglecting the land in rural and city, other than constituting indiscreet attitude, non-eco nomic (lost of oplJ(lrtunity to accomplish eco nomic potential of the land), and non-judicious, and also constitutes violation of the obligation to be complied with by the Holder of Right or the party that has obtained the basis for Qlntrolling Business News 8003/9-6-2010 the land. Neglecting the land also has impact on hamparing achievement of various objectives to accomplish development program, the suscep tible defense in food and national economy, the locked access to social economy of the people especially the farmers on the land, and perturbed justice and social harmony. The State grants right to the land or Right to Manage to the Holder of Right to exploit, use and utilize, and to maintain it properly other than for the welfare of the Holder of Right is also meant for the welfare of the people, nation and State. When the State grants right to any per son or legal entity this is usually accompanied by obligations to be stipulated in Law Number 5 Year 1960 concerning Regulation on Agrarian Basic Principals and decision letter for grant of right thereof. Accordingly, the Holder of Right is prohibited from neglecting the land thereof, and if the Holder of Right neglect the land, Regula tion of Agrairan Basic Principals governed the legal consequence thereof, namely elimination of right to the land concerned and termination of legal relation and confirm as land under the di rect control of the State. For land that bears no right to the land yet, exploitation and use of the land must be based on right to the land in accor dance with Article 4 in conjunction with Article 16 Law Number 5 Year 1960 concerning Regula tion of Agrarian Basic Principals. Accoordingly any person or legal entity that has obtained the basis for control of the land, either by procure ment of land from other party, appointment by the holder of the Right to Manage, due to ob taining location permit, or obtaining decision on release of forest zone shall be obliged to main tain and exploit it propet1y, not neglecting It, and submit. ..... 13A submit application to obtain right to the land. Although the party concerned obtains no right to the land yet, if the party concerned neglects the land, then the legal relation to the land con cerned will be revoked and shall be confirmed as land under the direct control of the state. Accordingly, negligence of land must be pre vented and orderly controlled to minimize or eliminate negative impact. Therefore prevention, orderly control and utilization of neglected land shall mnstitute important prerequirementto run the national development program, particularly in agrarian sector as mandated by the 1945 Con stitution of lhe Sate of the Republic of Indoensia, Regulation of Agrarian Basic Principals, and Na tional Long-Term Development Program. D..ARlla.E BY AR1lO..E Article 1 Self-expfanatory, Artide2 Land that bears Ownership Right, Right to Building, Right to Use, or Right of Manage shall be declared as neglected land if the land is not exploited, not used or not utilized according to the condition or nature and objective of the right thereto. Likewise with the land bearing the basis for exploitation thereof shall be declared neglected land if no application for right is submitted, it is not ex ploited, not used, or not utilized according to the requirements and or condition duly stipulated in the location permit, decision letter for grant of right, decision letter for release of forest zone, and/or in permit/ decision/ other certificate from the compe tent authority. Business News 8003/9-6-2010 Artide3 Letter a What is meant by "unintentionally unused according to the condition or nature and objective of grant of right thereto• in this provision shall be due to the Holder of Right is individual having no capability from the point of economy to exploit, use or utilize according to the condition or nature and objective of the grant of right thereto. letter b What is meant by •unintentionally used ac cording to condition or nature and objective of grant of right thereto" in this provision shall be due to limited state/Regional budget to exploit, use, or utilize according to the condition, nature and ob jective of grant of right thereto. Artide4 Paragraph (1) What is meant by" land indicated neglected" shall be land bearing right or basis to exploite the land not being exploited, not used or utilized ac ~rding to the condition, nature and objective for grant of right or basis for its exploitation not iden tified and examined yet. To obtain data on land indicated as ne glected inventory must be conducted the result of which shall be reported to the Head of Region. Paragraph (2) Self-explanatory. Artide 5 through Article 7 Self-explanatory. Artides ...... 14A Artide8 Paragraph (1) The first reminder letter shall state all mat ters that must be conducted by the Holder of Right and penalty may be imposed if the Holder of Right ignores or fails to implement the reminder. Paragraph (2) The second reminder, after due consider ation of the progress on the first reminder, must state all matters that must be conducted conceretely by the Holder of Right and penalty shall be imposed if the Holder of Right ignores or fails to implement the reminder. Paragraph (3) The third reminder, which is the final re minder, after due consideration of the progress of the second reminder, must state all matters that must be concretely conducted by the Holder of Right and penalty shall be imposed if the Holder of Right ignores or fails to implement the reminder. Paragraph (4) through Paragraph (6) Self-explanatoiy. Artide 9 through Article 14 Self-explanatory. Artide15 Paragraph (1) The State former neglected land shall be State general reserve land utilized for the State Business News 8003/9-6-:zom and the people's interest, by means of agrarian restructuring and State strategic program and for State other reserve. Agrarian restructuring is policy on land cov ering political layout system and legal land affairs and asset system of the people and access system of the people to the land based on the spirit of Ar tide 2 Decision of the Panel of People Deliberation of the Republic of Indonesia Number 'IX./MPR/2001 concerning Agrarian Renewal and Management of Natural Resource, and Article 10 of Law Number 5 Year 1960 concerning Regulation of Agrarian Basic Principals. The people's asset layout and access lay out over the land may be distributed and redistri bution of State former neglected land. The State strategic program shall be among other things, to develop food sector, erlel!IY, people housing in the context of improve the welfare of the people. Other State reserves among other things, to fulfil the need for land for the Government, de fense, and security, the need for land as effect of natural, relocation and re-residence of the people affected by development for public interest. Paragraph (2) Self-explanatoiy. Artie!· 6 through Article 20 Self-explanatory. SUPPI.EMENTTOSTATUTEBOOKOFTHE REPUBLICOFINDONESIANUMBER5098 ===( MA )===