Navigating the Future of Land Ownership: Understanding Indonesia’s Regulation on Old Right’s Evidence

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Authors

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Overview

In 2021, the Indonesian Government enacted Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 16 of 2021 (“ATR/BPN Reg 16/2021”), a significant regulation regarding the validity of various forms of land ownership documentation, including Petuk Pajak Bumi/Landrente, Girik, Pipil, Kekitir, and Verponding (“Old Right’s Evidence”).

With an implementing regulation of Government Regulation No. 18 of 2021 on Right-to-Manage, Land Titles, Multistorey Housing Units, and Land Registration (“GR 18/2021”), stating that the Old Right’s Evidence will no longer be valid as proof of land ownership 5 (five) years from the issuance of GR 18/2021. Such provision is also regulated under Article 76A of ATR/BPN Reg 16/2021.

The issuance of these regulations aims to protect public assets and to minimize the existence of land disputes. Through this regulation, the government encourages the public to promptly upgrade their land ownership documents to Right of Ownership Certificate (Sertifikat Hak Milik – “SHM”) for better asset security.

Invalidity of Old Right’s Evidence

By February 2, 2026, the Old Right’s Evidence will be rendered invalid as legal instruments for proving ownership, and only applicable as guidelines for land registration purposes. However, it is important to note that the invalidity of Old Right’s Evidence does not mean that the land’s status as former customary land will change. It will remain categorized as former customary land.

Consequently, those who do not transition their former customary land into SHM risk potentially losing their claims, as ownership based solely on Old Right’s Evidence will no longer be legally recognized.

Land Registration Process

Land registration following the invalidation of the Old Right Evidence is conducted through the recognition of rights mechanism. The application for recognition of rights must be accompanied by a declaration of physical control over the land from the applicant, who accepts full civil and criminal liability, stating the following:

1. The land in question is genuinely owned by the applicant and not by any other party, with its status being former customary land, not state-owned land;
2. The applicant has physically controlled the land for 20 (twenty) consecutive years or more;
3. The land has been controlled openly and in good faith by the applicant as the rightful owner;
4. There are no objections from any third parties regarding the ownership of the land, and the land is not involved in any disputes;
5. No objections have been raised by creditors if the land is used as collateral for a debt; and
6. The land is not an asset of the government, regional government, or state-owned enterprise/regionally owned enterprise and is not located within a forest area.

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Go to

1. Overview
2. Invalidity of Old Right’s Evidence
3. Land Registration Process

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