Understanding Indonesian Land Rights: Primary and Secondary Forms, Legal Framework, and Real‑World Cases

Introduction

The presentation, led by lecturer Rizki Syafil, MSI, and moderated by Muhammad Azlan, explored the concept of land rights under Indonesian law, focusing on the 2014 KBBA (Land Basic Law) and the 1960 UUPA (Basic Agrarian Law). The team—Hasan Dani, Ahmad Fauzan, Muhammad Ilham, and Yudis Ananda— broke down the legal definitions, categories of rights, and illustrated their points with two case studies.

What Is Land According to KBBA 2014?

• Definition: Land is the surface of the earth, including the topmost layer of soil, air, water, and space above it.
• Authority (Hak): The state grants authority to individuals or legal entities to use, control, and benefit from land.

Core Principles of Land Authority

1. Existence of Authority – The right to use land, water, and space for personal benefit.
2. Boundaries (Batas) – Use must not harm others; certain uses (e.g., building rights) are restricted.
3. Permission and Obligation (Izin & Kewajiban) – Users must comply with conditions, maintain the land, and actively cultivate it.

Primary Land Rights (Hak Utama)

Secondary Land Rights (Hak Turunan)

• Mortgage (Hak Tanggungan) – Security right for creditors over a debtor’s land; common in customary law areas.
• Profit‑Sharing (Bagi Hasil) – Agreement where landowners share agricultural profits with cultivators.
• Right to Board (Hak Guna Bangunan Sementara) – Temporary right to build on another’s land based on social or contractual agreement.
• Rental (Hak Sewa) – Right to lease land for a period, paying rent to the owner.

Case Study 1: PT Bumisari vs. Village Community

• Background: PT Bumisari obtained an HGU certificate in 1981‑85 for land claimed by the local village as ancestral heritage.
• Legal Conflict: Village argues the land is customary, protected by both customary and national law; PT Bumisari relies on the HGU certificate.
• Key Issues: Article 20 (property rights) vs. Article 29 (cultivation rights) of UUPA; recognition of customary land.
• Potential Solutions: Compensation, renegotiation of HGU status, or legal acknowledgment of the village’s customary rights.

Case Study 2: Simpang Tonang Village Land Transactions (Law No. 56/2000)

• Findings: Implementation of the law in Pasaman district deviated from its intent; transactions were often informal, lacking legal certainty, and sometimes involved extortion.
• Problems Identified: Farmers did not understand the law, leading to unfair harvest‑sharing agreements and loss of land control.
• Recommendations: Better legal education for villagers, stronger protection for smallholders, and stricter enforcement of the law’s provisions.

Conclusion of the Presentation

• Land rights consist of three main components: authority to use, limitations to protect others, and management obligations.
• Primary rights (ownership, cultivation, building, use) are long‑term and can be directly held.
• Secondary rights (mortgage, profit‑sharing, board, rental) are temporary, regulated by Article 53 UUPA, and often involve third‑party interests.
• Understanding both categories is essential for resolving disputes and ensuring equitable land governance in Indonesia.

Key Takeaways

• Indonesian land law balances state‑granted authority with protection of customary rights.
• Clear legal definitions and proper documentation (e.g., HGU, HGB) are crucial to avoid conflicts.
• Education and transparent enforcement are needed to protect vulnerable communities from exploitative practices.

Effective land governance in Indonesia hinges on distinguishing primary and secondary rights, respecting customary claims, and ensuring transparent, legally sound transactions to prevent disputes.