New Minister of Agrarian Affairs Affirms: Foreigners Cannot Own Land in Indonesia
The Minister of Agrarian Affair and Spatial Planning, Ferry Mursyidan Baldan, has reaffirmed the long-standing principle that land ownership in Indonesia is an exclusive right reserved for Indonesian citizens. Quoted in NusaBali, Minister Baldan warned: “Foreigners cannot own land anywhere within the sovereign territory of Indonesia.
This is in keeping with Section 33 of the Agrarian law of 1945 that governs the ownership of land and the resources within those lands.” The Minister said there are special circumstance where foreigners living in Indonesia are permitted to rent, invest or build factories for specified periods of time, providing in every instance that the Indonesian people and the Country derive some clearly defined benefit from the foreigners using the Nation’s land.
Other conditions for foreign usage of Indonesian territory, said Baldan, is that the foreigner must be resident in Indonesia or a foreign company must have a branch in Indonesia. Concluding his comments, the Minister added: “Although there are rights to use land granted to foreigners, ownership of land is never granted to foreign national because of the underlying principle that the lands, waters and resources of Indonesian must be under the control of the State.”
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