Uu No 5 1960 en

LAW OF THE REPUBLIC OF INDONESIA
NUMBER 5 OF 1960
ON
BASIC AGRARIAN PRINCIPLES
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering:
a. that in the Republic of Indonesia in which the structure of life of the people, including the economy, is still
primarily agricultural in nature, the earth, water and airspace as gifts from God Almighty have very
important functions to build a just and prosperous society;
b. that the agrarian law which is still in force today is partially formulated based on the objectives and
principles of the colonial government and is partly influenced by it, thus contradicting the interests of the
people and the State in completing the current national revolution as well as universal development;
c. that said agrarian law has duality, with the enforcement of customary law in addition to agrarian law which
is based on western law;
d. that for the native people, the colonial agrarian law does not guarantee legal certainty.
Inferring:
a. that in relation to the abovementioned considerations, it has been deemed necessary to establish a
national agrarian law, which is based on customary law on land, and which is simple and guarantees legal
certainty for all Indonesian people, without neglecting elements that rely on religious law;
b. that the national agrarian law must provide for the possibility of achieving the functions of earth, water and
airspace as referred before and must be in accordance with the interests of the Indonesian people as well
as fulfil their needs in accordance with the demand of the times in all agrarian matters;
c. that the national agrarian law must embody the incarnation of Belief in God Almighty, Humanity,
Nationality, Democracy and Social Justice, as the spiritual principles of the State and the ideals of the
nation, as set out in the Preamble to the Constitution;
d. that said agrarian law must also be an implementation of Decree of the President dated 5 July 5 of 1959,
the provision in article 33 of the Constitution and the Political Manifesto of the Republic of Indonesia, as
affirmed in the speech of the President dated 17 August of 1960, which obliges the State to regulate land
ownership and lead its utilization, so that all land in the entire territory of the nation's sovereignty is used
for the greatest prosperity of the people, both individually and in mutual cooperation;
e. that in relation to all of the above, it has been deemed necessary to lay down the foundations and
formulate new basic provisions in the form of Laws which will serve as basis for the formulation of the
abovementioned national agrarian law.
Having noted:
The proposal of the Provisional Supreme Advisory Board of the Republic of Indonesia No. 1/Kpts/Sd/II/60 on the
Restructuring of Land Rights and Land Use;
MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 1 / 33

Observing:
a. Decree of the President dated 5 July 1959;
b. Article 33 of the Constitution;
c. Stipulation of the President Number 1 of 1960 (State Gazette of 1960 Number 10) on the Stipulation of the
Political Manifesto of the Republic of Indonesia dated 17 August of 1959 as the Outlines of the State policy
and the Mandate of the President dated 17 August of 1960;
d. Article 5 jo. 20 of the Constitution.
With the Approval of

GOTONG-ROYONG HOUSE OF REPRESENTATIVES,
HAS DECIDED:
By revoking:
(1) “Agrarische Wet” (Staatsblad 1870 No. 55) as contained in article 51 of Wet op de Staatsinrichting van
Nederlands Indie (Staatsblad 1925 No. 447) and the provisions contained in the other paragraphs of the
said article;
(2) a. “Domeinverklaring” as referred to in article 1 of “Agrarisch Besluit” (Staatsblad 1870 No. 118);
b. “Algemene Domeinverklaring” as referred to in Staatsblad 1875 No. 119A;
c. “Domeinverklaring for Sumatera” as referred to in article 1 of Staatsblad 1874 No. 94f;
d. “Domeinverklaring for the Regency of Manado” as referred to in article 1 of Staatsblad 1877 No.55;
e. “Domeinverklaring for Residentie Zuilder en Oosterafdeling van Borneo” as referred to in article 1 of
Staatsblad 1888 No.58;
(3) Koninklijk Besluit dated 16 April 1972 (Staatsblad 1872 No. 117) and its implementing regulations;
(4) Book Two of the Civil Code of the Republic of Indonesia insofar as it pertains to earth, water, and the
natural resources contained therein, except for the provisions on hypotheek which are still effective at the
time this Law comes into force;
To enact:
LAW ON BASIC AGRARIAN PRINCIPLES
FIRST
CHAPTER I
FOUNDATIONS AND BASIC PRINCIPLES

Article 1
(1) The entire territory of Indonesia is the unity of motherland of the whole Indonesian people who are united
as the Indonesian nation.
(2) All the earth, water, and airspace, including the natural resources contained therein, which exist within the
territory of the Republic of Indonesia as gifts from God Almighty, are the Indonesian nation’s earth, water,
and airspace and constitute the nation’s wealth.
(3) The relationship of the Indonesian nation to the earth, water, and airspace as referred to in paragraph (2)
of this article is an eternal relationship.
(4) In the definition of earth, it includes not only the surface of the earth but also the body of the earth below it
and that which is under water.
(5) In the definition of water, it includes not only inland waters but also the territorial sea of Indonesia.
(6) Airspace is the space over the earth and water as referred to in paragraphs (4) and (5) of this article.
Article 2
(1) On the basis of the provisions as referred to in Article 33 paragraph (3) of the Constitution and of the
matters as referred to in article 1, the earth, water, and airspace, including the natural resources contained
therein, are at the highest hierarchical level controlled by the State in its capacity as the organization of
power of the entire people.
(2) The right of control of the State as referred to in paragraph (1) of this article grants the authority to:
a. regulate and administer the allocation, utilization, provision, and maintenance of the earth, water,
and airspace;
b. determine and regulate legal relationships between people and the earth, water, and airspace;
c. determine and regulate legal relationships among people as well as legal acts in relation to the
earth, water, and airspace.
(3) The authority deriving from the right of control of the State as referred to in paragraph (2) of this article is
to be used to achieve the greatest prosperity of the people, in the sense of happiness, prosperity and
independence within the community and the constitutional state of Indonesia which are independent,
sovereign, just and prosperous.
(4) The implementation of the abovementioned right of control of the State may be delegated to autonomous
regions and customary law communities, if necessary and not contradictory to the national interest, in
accordance with the provisions of a Regulation of the Government.
Article 3
With due observance of the provisions in articles 1 and 2, the implementation of ulayat rights and similar rights of
customary law communities, insofar as they are are still present in accordance with the facts, must be in such a
way that they are in accordance with the national and state interests, which are based on national unity and must
not be in conflict with other laws and regulations of a higher level.
Article 4
(1) On the basis of the right of control of the State as referred to in article 2, it is determined that there are

various rights to the surface of the earth, which are called lands, which may be granted to and owned by
people, either individually or jointly with other people. others as well as legal entities.
(2) The land rights as referred to in paragraph (1) of this article authorize the use of the land in question, as
well as the body of earth and water as well as the airspace above them, only for interests directly related
to the use of the land in question within the limits according to this Law and other higher laws.
(3) In addition to the land rights as referred to in paragraph (1) of this article, the rights to water and airspace
shall also be determined.
Article 5
Agrarian law applicable to earth, water and air space is customary law, provided that it does not conflict with
national and state interests, and which is based on national unity, with Indonesian socialism, as well as with the
regulations set out under this Law and with other laws and regulations, all things with due regard to the elements
that rely on religious law.
Article 6
All land rights shall have a social function.
Article 7
In order not to harm the public interest, the ownership and control of land that exceeds the limit must not be
allowed.
Article 8
On the basis of the right of control of the state, as referred to in article 2, the extraction of natural resources
contained in the earth, water and airspace shall be regulated.
Article 9
(1) Only Indonesian citizens that may have a complete relationship with the earth, water, and airspace, within
the limits stipulated in the provisions of article 1 and article 2.
(2) Every Indonesian citizen, both men and women, has an equal opportunity to acquire a land right and to
obtain the benefits and yields thereof for themselves or for their family.
Article 10
(1) Every individual and legal entity which holds a right to agricultural land is in principle obligated to actively
cultivate the land or work on it by themselves while avoiding any methods of human exploitation.
(2) The implementation of the provision of paragraph (1) of this article is to be regulated further by laws and
regulations
(3) Exemptions from the principle as referred to in paragraph (1) is to be regulated by laws and regulations.
Article 11

(1) Legal relationships between persons, including legal entities, with the earth, water and airspace as well as
the authorities which are sourced from said legal relationships will be regulated, in order to achieve the
objectives referred to in article 2 paragraph (3) and prevent the domination over the lives and work of
others which exceeds the limit.
(2) Differences in the circumstances of the community and the legal needs of groups of people where
necessary and not contradictory to the national interest shall be taken into account by ensuring the
protection of the interests of the economically weak groups.
Article 12
(1) All joint efforts in the agrarian sector are based on common interests in the context of the national interest,
in the form of cooperatives or other forms of mutual cooperation.
(2) The state may jointly with other parties organize joint businesses in the agrarian sector.
Article 13
(1) The Government shall seek to regulate enterprises in agrarian sector in such a way that these enterprises
may improve the people’s production and prosperity as referred to in paragraph (3) of article 2 and ensure
a standard of living which measures up with human dignity for every Indonesian citizen, both for
themselves and their family.
(2) The Government shall prevent any enterprises of private-monopolistic nature by organizations and
individuals in the agrarian sector.
(3) Any monopolistic enterprises by the Government in the agrarian sector may only be implemented by Law.
(4) The Government shall seek to advance social certainty and security, including the field of labor affairs,
within enterprises in the agrarian sector.
Article 14
(1) Considering the provisions as referred to in article 2 paragraphs (2) and (3), article 9 paragraph (2), and
article 10 paragraphs (1) and (2), the Government, within the context of Indonesian socialism, shall
formulate a general plan regarding the supply, allocation, and use of the earth, water, and airspace as well
as the natural resources contained therein:
a. for the State’s purposes;
b. for worship and other religious purposes in line with the principle of Belief in God Almighty;
c. for the purposes related to the development of public-life centers, socio-cultural centers, and other
forms of prosperity;
d. for the purposes related to the development of agricultural production, animal husbandry, and
fishery, and the likes; and
e. for the purposes related to the development of industry, transmigration, and mining.
(2) On the basis of the general plan as referred to in paragraph (1) of this article and in line with the relevant
regulations, Regional Governments regulate the supply, allocation, and use of the earth, water, and
airspace in their respective regions by taking into consideration the conditions of each region.
(3) Regulations of the Regional Governments as referred to in paragraph (2) of this article will not come into
force until they have been legalized by the President for Level I Regions, by the Governor/Head of the

Region Concerned for Level II Regions, and by the Regent/Mayor/Head of the Region Concerned for
Level III Regions.
Article 15
It is the obligation of every individual, legal entity, or institution which has a legal relationship with a land to take
care of the land, to improve its fertility, and to prevent it from damage by taking into consideration the interests of
economically weak parties.
CHAPTER II
LAND, WATER, AND AIRSPACE RIGHTS AS WELL AS LAND REGISTRATION
Division I
General Provisions
Article 16
(1) The land rights as referred to in Article 4 paragraph (1) are:
a. right of ownership,
b. right to cultivate,
c. right to build,
d. right to use,
e. right to lease,
f. right to clear land,
g. right to collect forest products,
h. rights other than those mentioned above which will be stipulated by a Law and rights of provisional
nature which are mentioned in Article 53.
(2) The water and airspace rights as referred to in Article 4 paragraph (3) are:
a. right to use water;
b. aquaculture and fishing rights; and
c. rights to use airspace.
Article 17
(1) With regard to the provisions in article 7, in order to achieve the objectives as referred to in article 2
paragraph (3), the maximum and/or minimum area of land that may be owned with any of the rights
referred to in article 16 by a family or legal entity shall be regulated.
(2) The determination of the maximum limit as referred to in paragraph (1) of this article shall be carried out in
accordance with laws and regulations in a short time.
(3) Lands which are in excess of the maximum limit as referred to in paragraph (2) of this article shall be

taken by the Government with compensation, to subsequently be distributed to the people in need in
accordance with the provisions in the Regulation of the Government.
(4) The achievement of the minimum limit as referred to in paragraph (1) of this article, which will be
established by laws and regulations, shall be implemented gradually.
Article 18
For the public interest, including the interests of the nation and the state as well as the common interest of the
people, land rights may be revoked, by providing proper compensation and in accordance with the method
regulated by law.
Division II
Land Registration
Article 19
(1) The Government shall implement the land registration throughout the territory of the Republic of Indonesia
to guarantee legal certainty in accordance with the provisions regulated under the Regulation of the
Government.
(2) The registration as referred to in paragraph (1) of this article shall include:
a. surveying, mapping, and recording of land in a book;
b. registration of land rights and of transfers of the rights;
c. granting of documentary instruments of evidence of right, which serve as strong instruments of
evidence.
(3) Land registration shall be implemented by taking into account the condition of the State and of the
community, the needs of socio-economic traffic, and the possibility of implementing it, according to the
Minister of Agrarian Affairs’ considerations.
(4) The fees pertaining to the land registration as referred to in paragraph (1) shall be regulated by a
Regulation of the Government with a provision exempting financially incapable people from paying said
fees.
Division III
Right of Ownership
Article 20
(1) A right of ownership is the hereditary, strongest and fullest right upon land which one may hold, subject to
the provision as referred to in Article 6.
(2) A right of ownership may transfer and be transferred to another party.
Article 21
(1) Only Indonesian citizens may have a right of ownership.

(2) The Government shall determine which legal entities may have a right of ownership and the conditions
thereof.
(3) Foreign citizens who after the enforcement of this Law acquire a right of ownership due to inheritance
without a will or mixing of assets due to marriage, as well as Indonesian citizens who have ownership
rights and after the enforcement of this Law lose their citizenship must relinquish said rights within a
period of one year after the acquisition of said right or the loss of said citizenship. If, after the
abovementioned period, the right of ownership is relinquished, then said right shall be abolished by law
and the land falls to the State, provided that the rights of other parties which encumber it shall continue.
(4) As long as a person in addition to their Indonesian citizenship has foreign citizenship, then they cannot
own land with the right of ownership and for them the provisions in paragraph (3) of this article shall apply.
Article 22
(1) The occurrence of right of ownership according to customary law shall be regulated by a Regulation of the
Government.
(2) Other than according to the method as referred to in paragraph (1) of this article, the right of ownership
occurs due to:
a. determination of the Government, in accordance with the established methods and requirements;
b. with a Regulation of the Government;
c. provisions of the Law.
Article 23
(1) Property rights, as well as any transfers, abolishment and encumbrance with other rights must be
registered in accordance with the provisions as referred to in article 19.
(2) The registration as referred to in paragraph (1) is a strong instruments of evidence regarding the abolition
of right of ownership as well as the validity of the transfer and encumbrance of said rights.
Article 24
The use of land owned by non-owners is limited and regulated by laws and regulations.
Article 25
Right of ownership may be used as collateral for debt with the encumbrance of mortgage.
Article 26
(1) Sale and purchase, exchange, grant, testamentary gift, gift according to customs and other actions which
intended to transfer right of ownership and their supervision shall be regulated under a Regulation of the
Government.
(2) Any sale and purchase, exchange, grant, testamentary gift and other actions which are intended to directly
or indirectly transfer right of ownership to a foreign citizen, to a citizen who in addition to their Indonesian
citizenship has foreign citizenship or to a legal entity except for those stipulated by the Government as
referred to in article 21 paragraph (2), are null and void by law and the land fell to the State, provided that

the rights of other parties that encumbered them remain to continue and all payments that have been
received by the owner cannot be reclaimed.
Article 27
Right of ownership shall be abolished if:
a. the land fall to the State:
1. due to the revocation of rights based on article 18;
2. due to voluntary surrender by the owner;
3. due to being abandoned;
4. due to the provisions of article 21 paragraph (3) and article 26 paragraph (2);
b. the land is destroyed.
Division IV
Right to Cultivate
Article 28
(1) A right to cultivate is a right to work on land directly controlled by the State for a period as referred to in
article 29 for agricultural, fishery or animal husbandry companies.
(2) A right to cultivate is to be granted on land whose area is at least 5 hectares, on condition that if the area
of the land is 25 hectares or more must adopt adequate capital investment and good corporate
management techniques in accordance with the development of times.
(3) A right to cultivate may transfer and be transferred to another party.
Article 29
(1) A right to cultivate may be granted for a maximum period of 25 years.
(2) For a company which requires more time, it may be granted a right to cultivate with a maximum period of
35 years.
(3) Upon request of the right holder and having regard to the circumstances of the company, the period as
referred to in paragraphs (1) and (2) of this article may be extended for a maximum period of 25 years.
Article 30
(1) Those who may obtain a right to cultivate are:
a. Indonesian citizens;
b. legal entities established under Indonesian law and domiciled in Indonesia.
(2) A person or legal entity that hold a right to cultivate and no longer fulfils the conditions referred to in
paragraph (1) of this article is obligated to relinquish or transfer the right to other parties which fulfil the
conditions within a period of one year. This provision also applies to parties who acquire a right to cultivate

if they do not fulfil the requirements. If the right to cultivate is not relinquished or transferred within the said
period, the right shall be abolished due to law, on condition that the rights of other parties will be
considered, in accordance with the provisions stipulated in a Regulation of the Government.
Article 31
A right to cultivate occurred due to a stipulation of the Government.
Article 32
(1) A right to cultivate, including the conditions for granting it, and also any transfer and abolishment of such a
right, must be registered in accordance with the provisions as referred to in Article 9.
(2) The registration as referred to in paragraph (1) shall be as a strong instrument of evidence concerning the
transfer and abolishment of a right to cultivate, except in the case if such a right is abolished due to its
period has expired.
Article 33
A right to cultivate may be used as collateral for debt with the encumbrance of mortgage.
Article 34
A right to cultivate shall be abolished due to:
a. the period has expired;
b. termination before its period has expired due to a certain requirement is not fulfilled;
c. relinquishment by the right holder before its period has expired;
d. revocation in the interests of the public;
e. being abandoned;
f. the land is destroyed;
g. the provisions in Article 30 paragraph (2).
Division V
Right to Build
Article 35
(1) A right to build is a right to construct and possess buildings on land which is not their own for a maximum
period of 30 years.
(2) Upon request of the right holder and in view of the needs and of the condition of the buildings, the period
as referred to in paragraph (1) may be extended for a maximum period of 20 years.
(3) A right to build is may transfer and be transferred to another party.

Article 36
(1) Those who may have the right to build are:
b. legal entity established under Indonesian law and domiciled in Indonesia.
(2) Any person or legal entity that owns the right to build and no longer fulfils the requirements as referred to
in paragraph (1) of this article within a period of 1 year must relinquish or transfer said right to another
party who fulfils the requirements. This provision also applies to parties who has obtained the right to
build, if they fails to fulfil the abovementioned requirements. If the relevant right-to-build is not relinquished
or transferred within the said period, then the right is abolished due to law, provided that the rights of the
other parties are considered, in accordance with the provisions which are to be established under a
Regulation of the Government.
Article 37
Right to build shall occur:
a. on land which is directly controlled by the State; due to Government stipulation;
b. on owned land; due to an authentic agreement between the owner of the land concerned and the party
who will obtain the right to use, which intends to give rise to said right.
Article 38
(1) Right to build, including the conditions for its granting, as well as any transfers and abolishment of said
rights must be registered in accordance with the provisions as referred to in article 19.
(2) The registration as referred to in paragraph (1) shall be a strong instrument of evidence regarding the
abolishment of the right to build and the validity of the transfer of the right, except in the event that the
right is abolished due to the expiration of its period.
Article 39
Right to build may be used as collateral for debt with the encumbrance of mortgage.
Article 40
Right to build shall be abolished due to:
a. the period has expired;
b. termination before its period has expired due to a certain requirement is not fulfilled;
c. relinquishment by the right holder before its period has expired;
d. revocation in the interests of the public;
e. being abandoned;
f. the land is destroyed;
g. the provisions in article 36 paragraph (2).

Division VI
Right to Use
Article 41
(1) A right to use is a right to use, and/or to collect products from land directly controlled by the State or land
owned by another individual which grants authority and obligations as determined in the relevant right-
granting decree by the official who is authorized to grant it or in zn agreement with the land owner, where
the agreement is not a land lease agreement or land exploitation agreement, given that everything is
possible as long as it does not contradict the spirit and provisions of this Law.
(2) A right to use may be granted:
a. for a certain period or for as long as the land is used for a specific purpose; and
b. for free, for a certain payment, or for any kind of service.
(3) The granting of a right to use cannot be entailed with conditions which contain elements of exploitation.
Article 42
Those eligible for a right to use are:
a. Indonesian citizens,
b. foreign citizens domiciled in Indonesia;
c. legal entities established under Indonesian law and domiciled in Indonesia, and
d. foreign legal entities having representatives in Indonesia.
Article 43
(1) In the case of land directly controlled by the State, a right to use may be transferred to another party only
with the approval of the authorized official.
(2) A right to use on land with right of ownership may be transferred to another party only in the case if such a
transfer is possible under the relevant agreement.
Division VII
Right to Lease for Buildings
Article 44
(1) A person or a legal entity has the right to lease land, if they have the right to use land owned by another
person for building purposes, by paying the owner a certain amount of money as rent.
(2) Payment of rent may be made
a. once or at every specific time;
b. before or after the land is used.
(3) The land lease agreement as referred to in this article may not be accompanied by conditions that contain

elements of extortion.
Article 45
The following parties may become holders of right to lease:
b. foreign citizens who are domiciled in Indonesia;
c. a legal entity established under Indonesian law and domiciled in Indonesia;
d. foreign legal entities having representatives in Indonesia.
Division VIII
Right to Clear Land and Collect Forest Products
Article 46
(1) The right to clear land and collect forest products may only be owned by Indonesian citizens and shall be
regulated under a Regulation of the Government.
(2) By using the right to collect forest products legally does not automatically obtain right of ownership over
the land.
Division IX
Right to Use Water and Aquaculture and Fishing Rights
Article 47
(1) Right to use water is the right to obtain water for certain purposes and/or drain the water on other people's
land.
(2) Right to use water as well as aquaculture and fishing shall be regulated by Regulation of the Government.
Division X
Right to Use Airspace
Article 48
(1) Rights to use airspace provide its holder with the power to use the energy and other elements existing in
the airspace for the implementation of efforts at maintaining and developing the productivity of the earth,
water, and natural resources contained therein and for other purposes related to such efforts.
(2) Right to use airspace is regulated by a Regulation of the Government.
Division XI

Land Rights for Sacred and Social Purposes
Article 49
(1) Land ownership rights of religious and social entities insofar as they are used for business in the religious
and social sectors are acknowledged and protected. These agencies are also guaranteed to obtain
sufficient land for their buildings and businesses within the religious and social sectors.
(2) For religious purposes and other sacred purposes as referred to in article 14, land which is directly
controlled by the State with right to use may be granted.
(3) Waqf of owned land is protected and regulated by Regulation of the Government.
Division XII
Miscellaneous Provisions
Article 50
(1) Further provisions on right of ownership shall be regulated by Law.
(2) Further provisions on the right to cultivate, right to use for building, right to use and right to lease for
buildings shall be regulated by laws and regulations.
Article 51
Mortgages which may be encumbered upon the right of ownership, right to cultivate and right to build as referred
to in article 25, article 33 and article 39 shall be regulated by the Law.
CHAPTER III
CRIMINAL PROVISIONS
Article 52
(1) Any person who intentionally violates the provisions of article 15 shall be subject to confinement for a
maximum of 3 months and/or a maximum fine of Rp10,000,-.
(2) The Regulation of the Government and the laws and regulations as referred to in articles 19, 22, 24, 26,
paragraph (1), 46, 47, 48, 49, paragraph (3) and 50 paragraph (2) may impose criminal punishment for
violations of its regulations with a maximum confinement of 3 months and/or a maximum fine of Rp10,000.
(3) The criminal acts as referred to in paragraphs (1) and (2) of this article are misdemeanor.
CHAPTER IV
TRANSITIONAL PROVISIONS
Article 53

(1) The provisional rights as referred to in article 16 paragraph (1) letter (h) are a lien, profit-sharing business
rights, right of transient occupancy, and right to lease for agricultural land, and they are regulated in order
to put restrictions on their characteristics which contradict this Law while efforts are made to abolish the
existence of such rights within a short time.
(2) The provisions in article 52 paragraph (2) and (3) shall apply to the regulations as referred to in paragraph
(1) of this article.
Article 54
In relation to the provisions of articles 21 and 26, if a person who, in addition to their Indonesian citizenship, has
the citizenship of the People's Republic of China, has declared rejection of the citizenship of the People's
Republic of China which is ratified according to the relevant laws and regulations, they shall be considered to be
an Indonesian citizen only according to article 21 paragraph (1).
Article 55
(1) Foreign rights which, according to the provisions on the conversion under articles I, II, III, IV and V into
right to cultivate and right to build, which are only temporary for the remaining period of said rights, for a
maximum period of 20 years.
(2) Right to cultivate and right to build shall only be granted to legal entities which are partially or wholly
foreign capital, if this is required by the Law governing planned universal national development.
Article 56
As long as the Law on right of ownership as referred to in article 50 paragraph (1) has not been established, then
the provisions of local customary law and other regulations on land rights that authorize as referred to in or
similar to those referred to in article 20 shall prevail, provided that it does not conflict with the spirit and
provisions of this Law.
Article 57
As long as the Law on mortgage as referred to in Article 51 has not yet been established, then the provisions
regarding the hypotheek in question in the Indonesian Civil Code and the Credietverband as referred to in
Staatsblad 908 No.542 as amended by Staatsblad 1937 No. .190. shall prevail.
Article 58
As long as the implementing regulations of this Law have not yet been established, then the written and
unwritten regulations regarding the earth and water as well as the natural resources contained therein and the
rights to land, which exist at the time of the enforcement of this Law shall remain valid insofar as it does not
conflict with the spirit of the provisions of this Law and is given an interpretation in accordance with it.
SECOND
CONVERSION PROVISIONS
Article I

(1) Eigendom rights over land existing at the time this Law comes into force shall become right of ownership,
unless the owner does not meet the requirements as referred to in article 21.
(2) Eigendom rights belonging to the Government of a Foreign State, which is used for the purpose of the
residence of the Head of the Representative and the embassy building, since the enforcement of this Law
shall become the right to use as referred to in article 41 paragraph (1), which will last as long as the land is
used for said purpose..
(3) Eigendom right of a foreign citizen, a citizen who in addition to his Indonesian citizenship has foreign
citizenship and legal entities, which are not appointed by the Government as referred to in article 21
paragraph (2) since the enforcement of this Law shall become a right to build as referred to in article 35
paragraph (1), for a period of 20 years.
(4) If the eigendom rights as referred to in paragraph (1) of this article are with opstal rights or erfpacht rights,
then the said opstal rights and erfpacht rights since the enforcement of this Law shall become the right to
build as referred to in article 35 paragraph 1, which encumbers the relevant right of ownership for the
remaining period of the abovementioned optal or erfpacht rights, but shall be a maximum of 20 years.
(5) If the eigendom rights as referred to in paragraph (3) of this article are encumbered with opstal rights or
erfpahct rights, then the relationship between the possessors of said eigendom rights and the holders of
opstal rights or erfpacht rights shall subsequently be settled in accordance with the guidelines established
by the Minister of Agrarian Affairs.
(6) The rights of hypotheek, servituu, vruchtengebruik and other rights which burden the eigendom rights still
burden the right of ownership and the right to build as referred to in paragraphs (1) and (3) of this article,
while said rights become a right according to this Law.
Article II
(1) Land rights providing their holders with powers as referred to in, or similar to those as referred in, article
20 paragraph(1) --i.e. such land rights as agrarisch eigendom right, right of ownership, foundations,
andarbeni, druwe right, right of village druwe, pesini, grant Sultan, landerijenbezitrecht, altijddurende
erfpacht, right of business on ex-partikelir lands, and other rights by any names which are to be
subsequently confirmed by the Minister of Agrarian Affairs—which already exist at the time this Law
comes into force, at the time this Law comes into force shall become the right of ownership as referred to
in Article 20 paragraph (1), except if the holder does not meet the requirements as referred to in article 21.
(2) If the rights as referred to in paragraph (1) are held by foreign citizens, by citizen who in addition to their
Indonesian citizenship has foreign citizenship or by legal entities which are not designated by the
Government as referred to in article 21 paragraph (2) becomes a right to cultivate or right to build,
depending on what the land in question has been allotted for, to be subsequently confirmed by the
Minister of Agrarian Affairs.
Article III
(1) The erfpacht right for large-scale plantation companies, which existed at the time of the enforcement of
this Law, shall from that time become the right to cultivate as referred to in article 28 paragraph (1) which
will last for the remaining period of said erfpacht right, but shall be a maximum of 20 years.
(2) The erfpacht right for small-scale agriculture, which exists at the time this Law comes into force, shall from
that time be abolished, and subsequently settled in accordance with the provisions which are promulgated
by the Minister of Agrarian Affairs.

Article IV
(1) Holders of concessions and leases for large-scale plantation companies within one year of the
enforcement of this Law must submit a request to the Minister of Agrarian Affairs for their rights to be
changed into a right to cultivate.
(2) If a request is not submitted after the abovementioned period, then the concession and the lease
concerned shall continue for the remainder of the period, but shall be a maximum of five years and after
that expires automatically.
(3) If the holder of a concession or lease submits the request as referred to in paragraph (1) of this article but
is not willing to accept the conditions determined by the Minister of Agrarian Affairs, or the request is
rejected by the Minister, then the concession and the lease concerned shall continue for the remainder of
the period, but shall be a maximum of five years and after that expires automatically.
Article V
The opstal right and the erfpacht right for housing, which exist at the time of the enforcement of this Law, shall
from that time become the right to build as referred to in article 35 paragraph (1) which lasts for the remaining
period of the said opstal and erfpacht right, but shall be a maximum of 20 years.
Article VI
Land rights providing their holders with authorities as referred to in, or similar to those as referred to in, article 14
(1) namely: vrughgebruik, gebruik, grant controlleur, bruikleen, ganggam bauntuik, anggaduh, bengkok, lungguh,
pituwas, and other land rights by whatever names which are to be subsequently confirmed by the Minister of
Agrarian Affairs, which already exist at the time this Law comes into force shall, at the time this Law comes into
force, become a right to use as referred to in article 41 paragraph (1), which provides the holders with the same
authorities and obligations which they already have at the time this Law comes into force, provided that such
authorities and obligations do not contradict the spirit and provisions of this Law.
Article VII
(1) Such land rights as gogolan, pekulen, and sanggan which are permanent and which already exist when
this Law comes into force, at the time this Law comes into force, become right of ownership as referred to
in article 20 paragraph (1).
(2) Such land rights as gogolan, pekulen, and sanggan which are provisional and which already exist when
this Law comes into force, at the time this Law comes into force, become a right to use as referred to in
article 41 paragraph (1), which shall provide the holders with the same authorities and obligations which
they already have when this Law comes into force.
(3) In the case of doubts as to whether a certain gogolan, pekulen, or sanggan is permanent or provisional,
the Minister of Agrarian Affairs shall make a decision.
Article VIII
(1) The right to build as referred to in article I paragraph (3) and (4), article II paragraph (2) and V shall apply
the provisions under article 36 paragraph (2).
(2) The right to cultivate as referred to in Article II paragraph (2), Article III paragraph (1) and Article IV
paragraph (1) shall apply the provisions under article 30 paragraph (2).

Article IX
Matters which are necessary to implement the provisions in the abovementioned articles shall be further
regulated by the Minister of Agrarian Affairs.
THIRD
Changes in the structure of the village government to organize reforms of agrarian law in accordance with this
Law shall be regulated separately.
FOURTH
A. Any rights and authorities over earth and water of Swapraja or ex-Swapraja which still exist at the time when
this Law comes into force shall be abolished and transferred to the State.
B. Any matters relating to the provision in letter A above shall be further regulated under a Regulation of the
Government.
FIFTH
This Law may be referred to as the Basic Agrarian Law and comes into force on the date of its promulgation.
For public cognizance, it is hereby ordered that this Law be promulgated in the State Gazette of the Republic of
Indonesia.
Enacted in Jakarta,
On 24 September 1960
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Signed.
SUKARNO
Promulgated
On 24 September 1960
SECRETARY OF THE STATE,
Signed.
TAMZIL
STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 1960 NUMBER 104

ELUCIDATION OF
LAW OF THE REPUBLIC OF INDONESIA
NUMBER 5 OF 1960
ON
BASIC AGRARIAN PRINCIPLES
GENERAL ELUCIDATION
I. Objectives of the Basic Agrarian Law.
In the Republic of Indonesia, in which the structure of life of the people, including the economy, is still
primarily agricultural in nature, the earth, water and airspace, as gifts from the God Almighty, have a very
important function to build a just and prosperous society as we aspire. Meanwhile, the current Agrarian
Law, which is supposed to be one of the important tools to build a just and prosperous society, is actually
on the contrary in many ways an obstacle to the achievement of the abovementioned aspiration. This is
mainly due to:
a. the agrarian law currently in force is partly structured based on the objectives and principles of the
colonial government, and partly influenced by it, thus contradicting the interests of the people and
the State in implementing universal development in completing the current national revolution;
b. the result of the politico-law of the colonial government, said agrarian law has duality, namely with
the enforcement of regulations of customary law in addition to regulations from and which are based
on western law, which in addition to causing various and complex intergroup problems, are not in
accordance with the ideals of Nation’s unity;
c. for the native people, colonial agrarian law does not guarantee legal certainty.
Therefore, it has been deemed necessary to have a new national agrarian law, which will replace the
current law, that is no longer dualistic, that is simple and which guarantees legal certainty for all
Indonesian people.
The new agrarian law must allow for the achievement of the functions of earth, water and airspace as
referred to above and must also be in accordance with the interests of the people and the state as well as
fulfil their needs in accordance with the demands of the times in all agrarian matters. Other than that,
national agrarian law must embody the embodiment of spiritual principles, the State and the ideals of the
Nation, namely the Belief in God Almighty, Humanity, Nationality, Democracy and Social Justice and in
particular must be an implementation of the provisions in article 33 of the Constitution and Outlines of the
state policy as set out in the Political Manifesto of the Republic of Indonesia dated 17 August 1959 and
affirmed in the President's Speech dated 17 August 1960.
In relation to all of these matters, it has been deemed necessary to formulate the basic joint and
provisions of the new law in the form of a law, which will serve as the basis for the formulation of other
regulations.
Even though the law is formal, no different from any other law, namely a regulation made by the
Government with the approval of the House of Representatives, but due to its nature as the basic
regulation for the new agrarian law, it will only contain principles and outline of issues thus it is referred to
as the Basic Agrarian Law. Its implementation will be regulated under various laws, Regulation of the
Governments and other laws and regulations.
Thus, in essence, the objectives of the Basic Agrarian Law are:
a. laying the foundations for the formulation of national agrarian law, which will be a tool to bring

prosperity, happiness and justice for the State and the people, especially farmers, in the framework
of a just and prosperous society.
b. laying the foundations for unity and simplicity in land law.
c. laying the foundations to provide legal certainty regarding land rights for the people as a whole.
II. Bases for national agrarian law.
(1) First of all, the national basis is laid out in article 1 paragraph 1, which states that:
"The entire territory of Indonesia is the unity of motherland of the whole Indonesian people who are
united as the Indonesian nation" and Article 1 paragraph 2 which reads that: "All the earth, water,
and airspace, including the natural resources contained therein, which exist within the territory of
the Republic of Indonesia as gifts from God Almighty, are the Indonesian nation’s earth, water, and
airspace and constitute the nation’s wealth."
This means that the earth, water and airspace within the territory of the Republic of Indonesia, for
which independence is being fought for by the nation as a whole, become the rights of the
Indonesian nation, so that they are not solely the rights of their owners. Likewise, lands in the
regions and islands are not solely the rights of the indigenous people of the regions or islands
concerned. With this understanding, the relationship between the Indonesian nation and Indonesia's
earth, water and airspace are a kind of ulayat right relationship, which is appointed at the highest
level, namely at the level which affects the entire territory of the State.
As for the relationship between the nation and the earth, water and airspace of Indonesia is an
eternal relationship (article 1 paragraph 3). This means that as long as the people of Indonesia who
are united as a nation of Indonesia still exist and as long as Indonesia's earth, water and airspace is
still there, under any circumstances there is no power that will be able to sever or nullify said
relationship. Thus, even though the area of West Irian, which is now part of the earth, water and
airspace of Indonesia is under colonial rule, based on the provisions of this article, said part
according to the law remains the earth, water and airspace of the Indonesian nation as well.
The relationship between the nation and the earth, water and airspace does not mean that the
ownership of individuals over (part of) the earth is no longer possible. It has been stated above that
this relationship is a kind of ulayat right relationship, so it does not mean a property relationship. In
the context of ulayat rights, individual property rights are known. It can be stressed that the new
agrarian law also recognizes the right of ownership, which can be owned by a person, either
individually or jointly with other people, over a part of the earth in Indonesia (article 4 in conjunction
to article 20). Meanwhile, only the surface of the earth, i.e. the so-called land, may be possessed by
a person.
In addition to right of ownership as the hereditary, strongest and fullest right upon land which one
may hold, the right to cultivate, right to build, right to use, right to lease and other rights which will be
established by other law (article 4 in conjunction to article 16).
The position of said rights in relation to the rights of the nation (and the State) shall be elaborated
upon in number 2 below.
(2) The principle of “domein” which was used by the colonial government as a basis for agrarian law, is
not recognized in the new agrarian law.
The principle of domein is contradictory to the Indonesian people’s legal consciousness and to the
principle of the State being independent and modern. In relation to that matter, the principle of
domein, which was confirmed in various “statements of domein”, namely Article 1 of Agrarische
Besluit (S. 1870-118), S. 1875-119a, S. 1874-94f, and S. 1888-58 has been discarded and the
various statements of domein have been revoked.

The Basic Agrarian Law is based on the position that in order to achieve what is stipulated in article
33 paragraph (3) of the Constitution, it is not necessary and not appropriate for the Indonesian
nation and State to act as landowner. It is more appropriate for the State, in its capacity as the
organization of power of the entire people (nation), to act as a Governing Body. It is from rom this
perspective that the meaning of the provision of article 2 paragraph (1), which says “the earth,
water, and airspace, including the natural resources contained therein, are at the highest level
controlled by the State” should be seen. Pursuant to theunderlying position as described above, the
term “controlled” in this article does not mean “owned” but, rather in the sense that grants the State,
in its capacity as the organization of power of the Indonesian Nation, the authority to do the
following at the uppermost level:
a. to regulate and organize their allotment, use, supply and maintenance.
b. to determine and regulate the rights which may be owned upon (part of) the earth, water and
airspace.
c. to determine and regulate legal relationships between people and legal acts in relation to
earth, water and airspace.
Everything is aimed at achieving the greatest prosperity of the people in the framework of a just and
prosperous community (article 2, paragraph 2 and 3).
The State’s power as meant above concerns all the earth, water, and airspace, both those which
are already possessed by an individual and those that are not. The state’s power over land which is
already possessed by an individual under a certain right is defined by the contents of the right in
question, and this means that the State’s power over the land in question ends at the point to which
it gives the individual in question authority to execute his/her right. The contents and limitations of
the rights are stated in article 4 and the following rights as well as in the articles of CHAPTER II.
The State’s power over land which is not possessed under a certain right by an individual or another
party is more extensive and full. With reference to the objectives mentioned above, the State can
grant such land to an individual or legal entity under a certain right, namely right of ownership, right
to cultivate, right to build, or right to use according to the allotment or the need or grant it to a
certain Authority Body [e.g. a Department, Jawatan (Service), or Autonomous Region] under a right
of management for use by the latter to facilitate the implementation of its respective duties (Article 2
paragraph 4). Meanwhile, the State’s power over such land is also defined, more or less, by the
ulayat rights of legal community units as long as the ulayat right in question, in reality, still exists.
This will be elaborated in number 3 below.
(3) In relation to the relationship between the nation and the earth as well as water and the power of
the state as referred to in articles 1 and 2, therefore in article 3 provisions regarding the ulayat rights
of legal community units are created, which in question will place said rights in its proper position in
the current atmosphere of the nation. Article 3 determines that:
"The implementation of ulayat rights and similar rights of customary law communities, insofar as
they are are still present in accordance with the facts, must be in such a way that they are in
accordance with the national and state interests, which are based on national unity and must not be
in conflict with other laws and regulations of a higher level”.
This provision firstly stems from the acknowledgment of the existence of ulayat rights in the new
agrarian law. As is known, despite the fact that ulayat rights exist and apply and are also taken into
account in the decisions of judges, this right has never been officially acknowledged under a Law,
with the result that in implementing agrarian regulations, ulayat rights were often ignored during the
colonial era.
Due to the mention of ulayat rights in the Basic Agrarian Law, which essentially also means the
acknowledgment of said rights, then in essence, ulayat rights will be considered, as long as said

rights in fact still exist in the relevant legal community. For example, in the granting of any land
rights (for example, the right to cultivate) the legal community concerned, will previously be heard
and will be given a "recognitie", in which it is entitled to receive it as the holder of the ulayat right.
However on the contrary, it cannot be justified if based on the ulayat right the legal community
hinders the granting of the right to cultivate, while the granting of said right in the area is really
necessary for the greater interest. Likewise, a legal community based on their ulayat rights, for
example, simply rejects the clearing of forests on a large scale and on a regular basis in order to
implement large projects in the context of implementing plans to increase food production and
relocate people.
Experience has also shown that the development of these regions is often hampered due to
difficulties regarding ulayat rights. This is the second premise of the provisions of article 3 above.
The interests of any legal community must be subordinated to the broader national and state
interests and the implementation of ulayat rights must be in accordance with these broader
interests.
It is unjustified, if in the current atmosphere of the nation, a legal community still maintains the
content and implementation of its ulayat right in absolute terms, as if it were detached from its
relationship with other legal communities and regions within the State as a unity. Such an attitude is
clearly contrary to the basic principles set out in article 2 and in practice will also lead to the
hindrance of major efforts to achieve the prosperity of the people as a whole.
However, as is clear from the foregoing, this does not mean that the interests of the legal
community concerned will not be taken into account at all.
(4) The fourth basis is set out in article 6, namely that "All land rights shall have a social function."
This means that any land rights which are owned by a person, it is not justified that their land will be
used (or not used) solely for their personal interests, especially if it causes losses to the community.
The use of land must be adjusted to its condition and the nature of its rights, so that it is beneficial
both for the welfare and happiness of the owner and beneficial for the community and the state.
However, at the same time, this provision does not mean that the interests of individuals will be
completely suppressed by public interests. The Basic Agrarian Law also takes individual interests
into account.
Public interests and individual interests must balance each other, so that in the end the basic
objective will be achieved, namely: prosperity, justice and happiness for the people as a whole
(article 2 paragraph 3).
Due to its social function, it is natural that the land should be well-maintained, in order to increase
its fertility and prevent its damage. The obligation to maintain this land is not only borne by the
owner or the holder of the relevant rights, but also becomes the burden of any person, legal entity
or agency that has a legal relationship with the land (article 15). In implementing this provision, the
interests of economically weak parties will be taken into account.
(5) In accordance with the principle of nationality as referred to in article 1, then according to article 9 in
conjunction to article 21 paragraph 1 only Indonesian citizens may have right of ownership over
land,
Right of ownership cannot be owned by foreign citizens and transfers of right of ownership to
foreign citizens are prohibited (article 26 paragraph 2). Foreign citizens may own land under right to
use with a limited area.
Likewise, basically legal entities cannot own right of ownership (article 21 paragraph 2).
"As for the consideration of (basically) prohibiting legal entities from owning right of ownership over
land, is because legal entities do not need to have right of ownership and having other rights

already suffice, provided that there are sufficient guarantees for their specific needs."(right to
cultivate, right to build, right to use according to articles 28, 35 and 41).
In this way, businesses which aim to circumvent the stipulations on the maximum limit area of land
which are owned under right of ownership can be prevented (article 17).
Even though legal entities are basically unable to have right of ownership over land, due to the
community needs which are closely related to religious, social and economic relantionship beliefs,
an escape clause has been established which allows certain legal entities to have right of
ownership. With the existence of this "escape-clause" then a dispensation will suffice if there is a
need for a right of ownership for any legal entity or entity to be granted a dispensation by the
Government, by appointing said legal entity as legal entities which are entitled to have right of
ownership over land (article 21 paragraph 2).
Legal entities operating within the social and religious sectors are designated under article 49 as
entities which may own right of ownership over land, however only as long as the land is required
for its business within the social and religious sectors. In the event that they are not directly related
to the said sectors, they are considered as ordinary legal entities.
(6) In addition, in relation to the principle of nationality as mentioned above, it is provided in article 9
paragraph (2) that “Every Indonesian citizen, both men and women, has an equal opportunity to
acquire a land right and to obtain the benefits and yields thereof for themselves or for their family”
Therefore, it is necessary to provide protection for economically weak citizens against economically
strong citizens. In relation to that matter, Article 26 paragraph (1) stipulates that “Sale and purchase,
exchange, grant, testamentary gift, gift according to customs and other actions which intended to
transfer right of ownership and their supervision shall be regulated under a Regulation of the
Government”. It is this provision that will serve as an instrument to protect weak groups as meant
above.
In this connection, it may also be necessary to note the provisions of Article 11 paragraph (1), which
are aimed at preventing the occurrence of excessive control of other people’s living and jobs in
agrarian-related business sectors because such control contradicts the principle of humanity-based
social justice. All joint enterprises in the area of agrarian affairs must be based on common interests
which are consistent with national interests [Article 12 paragraph (1)], and the Government is
required to prevent the existence of any enterprises of private-monopolistic nature by organizations
or individuals in the agrarian sector (Article 13 paragraph 2). However, it is not only private
enterprises but Government enterprises of monopolistic nature must be prevented so that the
people will not be disadvantaged. Therefore, any Government enterprises of monopolistic nature
can be organized only by way of an act (Article 13 paragraph 3).
(7) Article 10 paragraphs 1 and 2 formulate a principle which is currently becoming the basis for
changes in land structures in almost all parts of the world, namely in countries that have already
implemented the so-called "land reform" or “agrarian reform”, namely "agricultural lands should be
actively cultivated by the owners themselves."
In order for this slogan to be realized, other provisions have been deemed necessary. For example,
there should be a provision on the minimum area of land that must be owned by farmers, so that
they can obtain sufficient income to live a decent life for themselves and their family (article 13 in
conjunction to article 17). There should also be provisions on the maximum area of land which may
be owned by property rights (article 17), in order to prevent the accumulation of land in the hands of
certain groups. In this regard, article 7 contains an important principle, namely that the ownership
and control of land that exceeds the limit is not allowed, because such a thing is detrimental to the
public interest. Finally, this provision needs to be accompanied by the provision of credit, seeds and
other aids with mild conditions, so that the owner will not be forced to work in other fields, by
handing over control of their land to another party.

Meanwhile, considering the current structure of our agricultural society, it has been deemed
necessary to open up the possibility of utilizing agricultural land by non-owners, for example by
lease, profit-sharing, pledge, and so forth. But all other regulations, namely to prevent legal
relationships that are oppression of the weak by the strong (articles 24, 41 and 53).
Thus is the example of the use of land based on leases, profit-sharing agreements, pledge and so
forth may not be left to the approval of the parties concerned on a "freefight" basis, however, the
authorities will provide provisions on the methods and requirements, so that it may fulfil fairness
considerations and be prevented from extortion ("exploitation de l-'homme par l'homme"). As an
example, the provisions of Law No. 2 of 1960 on "Production Sharing Agreement" (L.N. 1960 - 2).
The abovementioned provision of article 10 paragraph 1 is a principle, the implementation of which
still requires further regulation (paragraph 2). Under the current state of the structure of our society,
it has been deemed necessary to open up the possibility of holding a dispensation in the future. For
example, a civil servant who, for their retirement, owns one or two hectares of land and, due to their
work, it is impossible to cultivate it by themselves. During this time the land may be handed over to
another person to be cultivated under a lease agreement, profit-sharing agreement and so forth.
However, after they are no longer working, for example, after retiring, they must actively cultivate
the land themselves. (paragraph 3).
(8) Finally, in order to achieve the abovementioned ideals of the nation and the State in the agrarian
sector, it has been deemed necessary to have a plan ("planning") on the allocation, use and supply
of earth, water and airspace for the various interests of the life of the people and the State: General
Plans ("National planning") which cover the entire Indonesian territory, which are then broken down
into special plans ("regional planning") for each region (article 14).
With this planning, the use of land can be carried out in a guided and orderly manner so that it can
bring maximum benefits to the Nation and the people.
III. Bases for unity and simplicity of law.
The grounds for achieving this objective are clearly visible in the provisions set out in Chapter II.
(1) As described above, agrarian law now has a "dualistic" nature and distinguishes between land
rights according to customary law and land rights according to western law, which are based on the
provisions in Book II of the Indonesian Civil Code. The Basic Agrarian Law intends to eliminate this
dualism and consciously wants to establish a legal unity, in accordance with the wishes of the
people as a single nation and in accordance with the interests of the economy.
Naturally, the new agrarian law must be in accordance with the legal awareness of the general
public. Since the Indonesian people are largely subject to customary law, the new agrarian law shall
also be based on the provisions of the customary law, as the original law, which is perfected and
adjusted to the interests of the people in the modern state and in relation to the international world,
as well as adapted to Indonesian socialism. As is well known, customary law in its growth cannot be
separated from the influence of politics and capitalistic colonial society and feudal autonomous
society.
(2) In implementing the legal unity, the Basic Agrarian Law shall not turn a blind eye to the existence of
differences in the conditions of the community and the legal needs of various groups of people. In
this regard, it is determined in article 11, paragraph 2, that:
"Differences in the circumstances of the community and the legal needs of groups of people where
necessary and not contradictory to the national interest shall be taken into account ."
Differences based on people's classes are, for example, differences in the legal needs of urban and
rural people, as well as economically strong people and economically weak people. Therefore, it is
subsequently determined in paragraph 2, that the protection of the interests of economically weak
groups is ensured.

(3) With the abolishment of the difference between customary law and western law in the field of
agrarian law, then the intention to achieve legal simplicity will also be implemented.
As described above, in addition to right of ownership is the hereditary, strongest and fullest right
upon land which one may hold, the new agrarian law basically recognizes land rights, according to
customary law as referred to in article 16 paragraph 1 letter d to g.
As for the fulfilment of the needs that have been felt in our society, 2 new rights are now being held,
namely the right to cultivate (for agricultural, fishery or animal husbandry companies) and the right
to build (to establish/own a building on someone else's land). (Article 16 paragraph 1 letters b and
c).
As for the existing rights upon the enforcement of this Law, all of them will be converted into one of
the new rights according to the Basic Agrarian Law.
IV. Bases for establishing legal certainty.
Efforts which lead to the certainty of land rights are evident from the provisions of the articles which
regulate land registration. Articles 23, 32 and 38 are addressed to the holders of the relevant rights so that
they may obtain certainty regarding their rights. Meanwhile, article 19 is addressed to the Government as
an instruction, so that land registration in the sense of "rechts-kadaster" is held in all regions of Indonesia,
meaning that it aims to guarantee legal certainty.
The registration will be organized by taking into account the interests and conditions of the State and the
community, the needs of socio-economic traffic and its possibilities in the field of personnel and
equipment. Therefore, the organization will take precedence in the cities in order to gradually increase the
cadastre which covers the entire territory of the State.
In accordance with its objective, which is to provide legal certainty, registration is mandatory for the
holders of the relevant rights, with the intention that they obtain certainty about their rights. Meanwhile,
article 19 is addressed to the Government as an instruction, so that land registration in the sense of
"rechts-kadaster" is held in all regions of Indonesia, meaning that it aims to guarantee legal certainty.
The registration will be organized by taking into account the interests and conditions of the State and the
community, the needs of socio-economic traffic and its possibilities in the field of personnel and
equipment. Therefore, it will gradually increase into the cadastre which covers the entire territory of the
State.
In accordance with its objective, which is to provide legal certainty, registration is mandatory for the
holders of the relevant rights. If this is not mandatory, then the land registration, which will obviously
require a lot of manpower, equipment and costs, will be meaningless.
ARTICLE BY ARTICLE ELUCIDATION
Article 1
It has been explained under the General Elucidation (II number 1). The Basic Agrarian Law makes a distinction
in the definition of “bumi” (earth) and “tanah” (land) as found in article 1 paragraph (3) and article 4 paragraph
(1). “tanah” (land) is the surface of the earth. The broadened definition of “earth” and “water” and airspace is in
relation with the current technical advancements and of the future possibilities.
Article 2
It has been elaborated upon under the General Elucidation (II number 2).

The provision in paragraph 4 is concerned with the principle of economy and medebewind (co-governing;
auxiliary assignment) in the organization of regional government. Agrarian matters by their nature and in
principle are the duties of the Central Government (article 33 paragraph 3 of the Constitution). Thus, the
delegation of authority to implement the right of control of the State over the land is a medebewind. All things will
be organized according to their needs and of course must not be in conflict with national interests. Authority in
the agrarian sector may be a source of finance for the region.
Article 3
"Ulayat rights and similar rights" shall be as referred to in the customary law library as "beschikkingsrecht." For
further elucidation, see the General Elucidation (II number 3).
Article 4
It has been explained under the General Elucidation (II number 1).
Article 5
An affirmation, that customary law are made as the basis of the new agrarian law. For further elucidation, see the
General Elucidation (III number 1).
Article 6
Not only right of ownership but all land rights shall have social functions. This has been elaborated upon under
the General Elucidation (II number 4).
Article 7
This article confirms the principle which bans excessive land ownership and possession (groot-grondbezit) as
has been elaborated upon under the General Elucidation (II number 7). The limitationsn are further regulated in
Article 17. This principle knows no exceptions.
Article 8
Since according to the provision of article 4 paragraph 2, a land right only grants the holder rights over the
surface of the earth, the authorities generated from it do not affect the natural resources contained within the
body of earth, water, and airspace. Thus, the taking of such natural resources requires separate regulations. The
said provision serves as a basis for mining and other laws and regulations.
Article 9
Paragraph 1 has been explained under the General Elucidation (II number 5).
The provision in paragraph 2 is the result of the provision in article 1 paragraphs 1 and 2.
Article 10
It has been explained under the General Elucidation (II number 7). The words "in principle" refer to the possibility

of holding exceptions as mentioned, for example, under the General Elucidation. However, these exemptions
need to be regulated under the relevant laws and regulations (see the elucidation of article 7 for comparison).
The use of land by a party other than its owner is allowed for by article 24, but such use is subject to limitations
and is to be regulated.
Article 11
This article carries the principle of the economically weak groups having to be protected against the
economically strong. The economically weak group can be native Indonesian citizens and those of foreign origin,
and the reverse is also true. See General Elucidation (III number 2).
Article 12
The provisions in paragraph 1 relate to the provisions in article 11 paragraph 1. Forms of joint business in
accordance with this provision are in the form of cooperatives and other forms of gotong-royong.
The provision in paragraph 2 gives the possibility of holding a "joint effort" between the State and the Private
sector in the agrarian sector. “Other parties” are regional governments, private entrepreneurs with national-scale
capital or with progressive domestic capital.
Article 13
Paragraphs 1, 2 and 3.
It has been explained under the General Elucidation (II number 6).
The provision in paragraph 4 is the implementation of the principle of humane social justice in the agrarian
sector.
Article 14
This article regulates the issue of planning on the supply, allotment, and use of the earth, water, and airspace as
has been described under General Elucidation (II number 8). In view of the future model of the State’s economy,
in which industry and mining will play important roles, planning should be conducted not only of agriculture but
also of industry and mining (paragraph (1) letters d and e). Such planning is not intended to simply provide land
for agriculture, animal husbandry, fishery, industry, and mining but also to develop them. Regulations made by
regional governments should be legalized within the context of General Plans made by the Central Government
and pursuant to the Central Government’s policies.
Article 15
It has been explained under the General Elucidation ((II number 4). Land must be properly maintained, namely
maintained in accordance with the methods which are commonly employed in the relevant area, in accordance
with the instructions of the relevant Jawatan (Services).
Article 16
This article concerns the implementation of the provision of article 4. In line with the principle stated in article 5,
namely that national land law is based on customary law, thus the land and water rights stipulated in this article
are also based on the systematics of customary law. As such, right to cultivate and right to build have been

created to respond to the needs of modern society in the current era. It is necessary to assert that right to
cultivate is not the erfpacht right as stipulated in the Civil Code. Similarly, right to build is not the opstal right. The
erfpacht and opstal institutions have been eliminated with the revocation of the provisions contained in Book II of
the Indonesian Civil Code.
Meanwhile, the customary rights which are by nature contradictory to the provisions of this law (article 7 and
article 10) but which, due to the current social circumstances, cannot be abolished as of yet, will be treated as
temporary rights and will be regulated (paragraph 1 letter h in conjunction to article 53).
Article 17
The provisions of this article are the implementation of what is determined in article 7. The determination of the
maximum area limit will be carried out in a short time with the laws and regulations. Land which is in excess of
the maximum limit will not be confiscated, but will be taken by the Government with compensation. These lands
will then be distributed among the people who need them. In principle, the compensation to the former owners
must be paid by those who acquire the said land. However, since they are generally unable to pay the price of
their land within a short time, the Government will provide credit and other measures so that the former owners
do not have to wait too long for the compensation in question.
The establishment of a minimum limit does not mean that persons who own land less than that will be forced to
relinquish their land. The determination of this minimum limit is primarily intended to prevent further subdivision
of land (“versplintering”). In addition, efforts will be made, for example in the form of: transmigration, large-scale
land clearing outside Java and industrialization, so that the minimum limit can be achieved gradually. "Family"
means a husband, wife and their children who are not yet married and become their dependents numbering
around 7 persons. Both men and women may become the head of the family.
Article 18
This article is a guarantee for the people regarding their land rights. Revocations of rights are possible, but are
bound by conditions, for example, must be accompanied by the provision of appropriate compensation.
Article 19
These land registrations will be organized in a simple and easily understood manner and be implemented by the
people concerned (see General Description IV).
Article 20
This article mentions the characteristics of right of ownership which make it different from other rights. Right of
ownership is the “strongest and fullest” right upon land which one may hold. However, that right of ownership
have such characteristics does not mean that it is a land right with “absolute, unlimited, and indefeasible” like the
right of eigendom in its true sense in the past. These characteristics are evidently contradictory to customary law
and to the principle that every land right has social functions. The word “strongest and fullest” is used to
distinguish the right from right to cultivate, right to build, right to use, and other rights. It serves to show that
amongst the rights which one can have to land, it is right of ownership which is the strongest and fullest.
Article 21
Paragraphs 1 and 2 have been elaborated upon under the General Elucidation (II number 5).

In paragraph 3, it only mentions 2 ways of obtaining right of ownership because other methods are prohibited by
article 26 paragraph 2. As for the methods referred to in this paragraph are methods of obtaining rights without
taking any positive action which is intentionally aimed at the transfer of said rights.
It is appropriate that as long as citizens allow themselves, in addition to their Indonesian citizenship to have
citizenship of other countries, in terms of land ownership they are distinguished from other Indonesian citizens.
Article 22
An example of the way in which property rights are established under customary law is the clearing of land.
These measures will be regulated so that no adverse events occur in the public interest and the state.
Article 23
It has been explained under the General Elucidation (number IV).
Article 24
As an exception to the principle set out in article 10. These forms of relationship between owners and
cultivators/users are for example: lease, profit-sharing, use or right to build.
Article 25
The land which is encumbered with this mortgage remains in the hands of its owner. Owners of land who are in
need of money may also (temporarily) pledge their lands in accordance with the provisions of article 53. In this
case, the land will be transferred to the holder of the pledge.
Article 26
The provision of paragraph (1) has been explained under the General Elucidation (II number 6) as having the
purpose of giving protection to economically weak parties. In this Basic Agrarian Law, distinction is made not
between indigenous and non-indigenous citizens but between economically strong and weak groups. The
economically strong can be Indigenous and non-indigenous citizens. Meanwhile, what are mentioned under
paragraph (2) results from the provision in article 21 as regards who is non-eligible for land ownership.
Article 27
Land is abandoned when it is deliberately not used in line with its condition or with the nature and purpose of the
right.
Article 28
This right is specially intended to enable companies dealing in agriculture, fishery, and animal husbandry to work
on land which they do not own. It differs from right to use in that this right to cultivate can be granted only for
purposes related to agriculture, fishery, and animal husbandry and only on land of at least 5 hectares. Unlike a
right to use, a right to cultivate may transfer and be transferred to another party and can be encumbered with a
mortgage. A right to cultivate cannot be granted to foreign citizens, while for legal entities operating with foreign
capital, it is only possible with reference to the limitations mentioned in article 55.

To encourage in order to the use and exploitation of the land is conduct in unwell manner, because in this case,
the right to cultivate can be revoked (article 34)
Article 29
According to its nature and purpose, rights to cultivate are rights which have a limited validity period. A period of
25 or 35 years with the possibility of extending it by 25 years is considered long enough for the cultivation of
long-lived plants. The determination of the 35-year period, for example, recalls the oil palm plantation.
Article 30
Rights to cultivate cannot be owned by foreign citizens. Only legal entities with progressive national capital, both
original and non-original, may have this right. For legal entities with foreign capital, the right of cultivation shall
only be granted if this is required by the Law governing the planned universal national development (Article 55).
Article 31
No explanation required.
The provisions stipulated in article 32 have been explained under the General Elucidation (number IV).
Article 32
Article 33
Article 34
Article 35
In contrast to the right to cultivate, the right to build does not relate to agricultural land. Therefore, in addition to
land which is directly controlled by the State, it may also be granted over someone else's land.
Article 36
The explanation is the same as in article 30.

Article 37
No explanation required. The provisions in article 38 have been explained under the General Elucidation
(number IV).
Article 38
No explanation required. The provisions stipulated in article 38 have been explained under the General
Elucidation (number IV).
Article 39
Article 40
Article 41
Right to use is a "set of definition" of the rights known under the land law under various names, all of which with
slight differences in relation to regional conditions, in essence granting authority to the holder as referred to in
this article. In the framework of simplification, as set out in the General Elucidation, such rights under the new
agrarian law are referred to by one name only.
Foreign embassy buildings can be granted with a right to use because this right can be valid for as long as the
land is used for that purpose. Foreign individuals and foreign legal entities can be granted with a right to use due
to the limited authorities provided.
Article 42
Right to use is a "set of definition" of the rights known under the land law under various names, all of which with
slight differences in relation to regional conditions, in essence granting authority to the holder as referred to in
this article. In the framework of simplification, as set out in the General Elucidation, such rights under the new
agrarian law are referred to by one name only.
Foreign embassy buildings can be granted with a right to use because this right can be valid for as long as the
land is used for that purpose. Foreign individuals and foreign legal entities can be granted with a right to use due
to the limited authorities provided.
Article 43
Article 44
Due to the right to lease is a right to use which has special characteristics; therefore, it shall be treated
separately. Right to lease are available only for structures in relation to the provisions of Article 10 paragraph 1.

The right to lease agricultural land by nature is temporary in nature (article 16 in conjunction with article 53). The
State cannot lease out land because the State does not own land.
Article 45
Due to the right to lease is a right to use which has special characteristics; therefore, it shall be treated
separately. Right to lease are available only for structures in relation to the provisions of Article 10 paragraph 1.
The right to lease agricultural land by nature is temporary in nature (article 16 in conjunction with article 53). The
State cannot lease out land because the State does not own land.
Article 46
The right to clear land and the right to collect forest products are rights under customary law relating to land.
These rights need to be regulated under a Regulation of the Government in the interest of the greater public
interests than the interests of individuals or the legal community concerned.
Article 47
The right to use water and the right to aquaculture and fishing are related to water that is not located on their
own land. When it comes to water which is located on their own land, then these matters are already included in
the content of the right of ownership over land.
Right to use water is the right to obtain water from rivers, canals or springs located outside of their own land,
then these matters are already included in the content of the right of ownership over land.
The right to use water is the right to obtain water from rivers, canals or springs located outside of their land, for
example, for the purpose of irrigating their land, households and so forth. For this reason, the water that is
needed often needs to be channelled (brought in) through someone else's land and water that is not needed
often needs to be drained (disposed) through someone else's land. These people must not hinder the landowner
from bringing in and disposing of the water through their respective lands.
Article 48
Right of use of airspace has been created in view of the current advancements in technology and of the
possibilities that may be open in the future.
Article 49
In order to eliminate doubts, this article affirms that matters relating to worship and other sacred needs under the
new agrarian law will receive due attention. It also relates to the provisions in article 5 and article 14 paragraph 1
letter b.
Article 50
As a consequence, this law only contains the basic points of the new agrarian law.
Article 51
As a consequence, this law only contains the basic points of the new agrarian law.

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022

Uu No 5 1960 en

Uploaded by

Copyright:

Available Formats

Uu No 5 1960 en

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Uu No 5 1960 en

Uploaded by

Copyright:

Available Formats

LAW OF THE REPUBLIC OF INDONESIA

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 1 / 33

With the Approval of

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 2 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 3 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 4 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 5 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 6 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 7 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 8 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 9 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 10 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 11 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 12 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 13 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 14 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 15 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 16 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 17 / 33

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 1960 NUMBER 104

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 18 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 19 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 20 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 21 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 22 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 23 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 24 / 33

ARTICLE BY ARTICLE ELUCIDATION

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 25 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 26 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 27 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 28 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 29 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 30 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 31 / 33

MICHAEL | DIUNDUH PADA 24 OKTOBER 2022 32 / 33

You might also like