Utilization of Underground Space

In this article, IGNOS explains the regulations for the utilization of underground space under the Job Creation Law, including the object, and the granting of land rights or management rights.

1. Underground space (ruang bawah tanah “RBT”) consist of shallow RBT and deep RBT.
2. The utilization of RBT must obtain the KKPR.
3. The utilization of RBT can be granted with HGB, right of use, or management rights. The owner of RBT may differ from the owner of land above it.
4. Land rights for RBT cannot be granted if there are oil, natural gas, mineral, or coal resources in RBT.

Law No. 11 of 2020 on Job Creation as revoked by Law No. 6 of 2023 on the Determination of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation become Law introduces a new concept related the use of RBT, which refers as a space that is below the surface of the land that is used for certain activities, where the control, ownership, use, and utilization of the space are separated from the land above it.

The provisions of RBT are further regulated under Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Condominium Unit, and Land Registration.

RBT consists of:

1. shallow RBT, namely land owned by land rights holders, with a maximum depth limit of 30 meters from the ground surface;
2. deep RBT, namely land that is structurally and/or functionally separate from the holder of land rights.

The applicant must obtain the Conformity of Space Utilization Activities (“KKPR”) from the Minister of Agrarian and Spatial Plan/Head of the National Land Agency to use the RBT.

RBT can be granted in the form of right to build (“HGB”), right of use, or management rights. In addition, the HGB and right of use can also be issued over the management rights, by obtaining prior approval from the holder of management rights. It is important to note that the land rights for RBT cannot be granted if there are oil, natural gas, mineral, or coal resources in the RBT.