COVID-19 Regulatory Updates

Govt. Issues Relaxation for Determination and Registration of Land Rights

27.05.2020

Due to the economic challenges imposed by the COVID-19 pandemic, the Indonesian government has issued a new regulation that relaxes the determination and registration of land rights.

On April 17, 2020, the Ministry of Agrarian Affairs and Spatial Planning/the National Land Agency issued Circular of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 7/SE-100.HR.01/IV/2020 on the Relaxation of Services for the Determination and Registration of Land Rights during the COVID-19 Emergency (鈥Circular 7/2020鈥).

With the issuance of this circular, the validity periods for the following rights which have already expired or will expire during the COVID-19 period, which began on March 31, 2020, have now been extended to December 31, 2020: 

  • Right-to-Cultivate (Hak Guna Usaha&苍产蝉辫;-&苍产蝉辫;鈥HGU鈥);&苍产蝉辫;
  • Right-to-Build (Hak Guna Bangunan&苍产蝉辫;-&苍产蝉辫;鈥HGB鈥);&苍产蝉辫;and
  • Right-to-Use (Hak Pakai&苍产蝉辫;-&苍产蝉辫;鈥HP鈥).&苍产蝉辫;&苍产蝉辫;

It should be noted that if a rights holder does not submit a rights extension application by December 31, 2020, then said rights will be deemed to have expired.

Furthermore, the validity periods to the registration of decision letters for the granting, extension or renewal of land rights that have expired or will expire during the COVID-19 period have also now been extended until December 31, 2020. If the relevant rights receiver has not registered their decision letter, extension or renewal of land rights by December 31, 2020, then said decision letter will be deemed null and void.

In the meantime, services related to registering decision letters on the granting of land rights or transferring of land rights affected by the obligation to pay Acquisition of Land-and-Building-Rights Duty Fees (Bea Perolehan Hak atas Tanah dan Bangunan鈥 鈥BPHTB鈥) and/or Income Tax can still be carried out until December 31, 2020.