Overview of Land Management Rights: Understanding the Subject, Object and Authorities of Right Holders

Get an explanation from IGNOS about management rights under Indonesian land law, including who can hold them and what can be granted.

1. Management rights can be granted over state land and customary land, upper space, underground space, and small islands.
2. Management rights over state land can be granted to the Central and Regional Government agencies, State/Regional Owned Enterprises, state/local legal entities, Land Bank Agency, and legal entities appointed by the Central Government.
3. The holder of management rights has the authority to (i) prepare a plan for the allocation, use, and utilization of land, (ii) use and utilize the land for his own use or cooperate with other parties, and (iii) determine management fees.
4. Land rights can be granted over the management rights land, with prior approval from the management rights holder.

Management rights refer to the right to control from the state whose implementation authority is partially delegated to the rights holder. Management rights are not land rights, but only rights given by the state to the right holder to manage the state land.

The provisions for management rights are regulated under the Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Condominium Unit, and Land Registration.

Management rights can be granted over the state land and customary land. In addition, management rights can also be granted for upper space (ruang atas tanah “RAT”), underground space (ruang bawah tanah “RBT”), and small island.

Management rights over the state land can be granted to:

1. Central Government Agency;
2. Local Government;
3. State/Regional Owned Enterprises;
4. state/local legal entity;
5. Land Bank Agency;
6. legal entities appointed by the Central Government.

Meanwhile, management rights over customary land are granted to customary law community.

The management rights are granted based on a decision of Minister of Agrarian and Spatial Plan/Head of National Land Agency.

The holders of management rights have the authority to:

1. prepare a plan for the allocation, use and utilization of land in accordance with the spatial plan;
2. use and utilize the land for their own use or cooperate with other parties; and
3. determine the management fees.

Third parties who utilize management rights land can be granted land rights by obtaining prior approval from the holder of management rights, where the land rights can be in the form of right to build or right of use.