Preventing State Repossession Risk of an Abandoned Land

abandoned land repossesion cropped

Under Indonesia’s national policy, the government is increasingly proactive in reclaiming idle or abandoned land to optimize national resources. As reported by Kompas on 21 April 2025, Minister of Agrarian Affairs and Spatial Planning/National Land Agency (Menteri Agraria dan Tata Ruang/Badan Pertanahan Nasional/ATR BPN), Nusron Wahid emphasized that land classified as “abandoned”, particularly those held under Hak Guna Usaha (HGU) or Hak Guna Bangunan (HGB) without active use, may be seized by the state. This serves as a crucial reminder for landowners to ensure their property remains compliant and productive.

Considering the strictness of the government in addressing land that is left unused or abandoned for extended periods, it serves as a reminder to landowners, such as individuals or organizations, to ensure that their property is actively managed and maintained.

What is an Abandoned Land?

Abandoned land refers to land with rights, land with management rights, and land acquired based on land control, which is deliberately left uncultivated, unused, unutilized, and/or not maintained, as defined in Government Regulation (Peraturan Pemerintah/PP) Number 20 Year 2021 concerning Control of Abandoned Areas and Land. While the government encourages landowners to develop their property, the law allows for intervention if a property is seen as being abandoned. In cases of prolonged abandonment, the state may seize the land, deeming it unproductive and reallocating it to other potential developers or projects.

Government Stance on Land Repossession

According to PP 20/2021, land is considered abandoned if it has been deliberately left uncultivated, unused, unutilized, or not maintained for more than two years after the land rights have been relinquished.

Specifically, a land with these specific land sertificate may be considered idle:

  1. HGB property (Hak Guna Bangunan) without any buildings for two consecutive years
  2. HGU property (Hak Guna Usaha) without active cultivation for two consecutive years

The same risk applies if the landowner failed to submit a renewal application within two years after the expiration period.

Risk Affecting the Landowners

If an individual or a company owns land in Indonesia, it is critical to ensure that the asset is being properly utilized or maintained to avoid potential issues with state repossession. If your land remains idle or unused for an extended period, you may face the risk of losing ownership, particularly if the government decides to repurpose it for public use.

It is important to understand the legal mechanisms surrounding land ownership in Indonesia, including the requirements for land utilization and the potential consequences of neglecting these obligations. Landowners should take proactive steps to either develop their land or engage in legal processes that keep their property status in good standing.

Key Takeaways for Landowners

  1. Active Management

    Make sure your land is actively managed, whether it’s developed, leased, or used for agricultural purposes. The government is increasingly focused on optimizing land use, so it’s vital to demonstrate that your land has an active role in the economy.

  2. Legal Compliance

    Ensure that you comply with all legal requirements related to land ownership, including any regulations regarding land use, zoning, and property development. This will help you avoid complications and potential disputes with government authorities.

  3. Stay Informed

    Property and land laws can evolve, and it’s essential to stay informed about any regulatory changes that may affect your property rights. Consulting with experts in property law can provide clarity and ensure that you are taking the appropriate steps to secure your land’s future.

How We Can Help

Putranto Alliance understands the difficulties of Indonesian property laws and can guide landowners through the complexities of land ownership and management. Should you need help with property development, understanding land utilization laws, or ensuring your land is legally compliant, our team of experts is here to assist you.

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