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Legal Reminder on Indonesia Land Certificates: Re-registration, Customary Rights Expiry, and State Acquisition of Abandoned Land

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If you own, develop, finance, or invest in land in Indonesia, you are operating in a regulatory window that is closing fast. This legal reminder on Indonesia land certificates: re-registration, customary rights expiry, and state acquisition of abandoned land is not just policy talk—it directly affects your ability to prove ownership, raise financing, complete M&A, and protect project timelines. A pivotal change arrives on 2 February 2026, when many legacy “customary” documents (like Girik and Letter C) stop functioning as valid proof of ownership and instead become, at best, supporting clues in the registration process. Understanding what changes—and how to act now—will determine whether your land portfolio remains bankable and dispute-resistant.

Key Takeaways

  • By 2 Feb 2026, Girik/Letter C and similar “old proofs” stop being valid evidence of ownership; convert them now.
  • After 2 Feb 2026, those documents may function only as indications (“petunjuk”) to assist registration—not as title proof.
  • Unused land can be “penertiban tanah telantar” under PP 20/2021; the state may reassign rights after due process.
  • Use PTSL to fast-track first registration/conversion and reduce boundary/overlap disputes.
  • Robust due diligence and timely re-registration protect financing, valuation, and exit options—avoid last-minute scrambles.

Core Legal Framework: From UUPA to the 2021 Regulatory Suite

a. UUPA No. 5/1960 and the Social Function of Land

Indonesia’s Basic Agrarian Law (UUPA) anchors the principle that land rights derive from the state and carry a social function. In practice, this means certainty of title is earned through registration and compliant use, and that rights can be limited or even revoked through due process where the social function is undermined (e.g., long-term non-use or harmful exploitation).

b. PP 24/1997 on Land Registration and its Continuing Role

PP 24/1997 codified how land should be registered and how certificates are issued/updated. While newer regulations refine the system, PP 24/1997 still underpins the mechanics of measuring, mapping, adjudicating rights, and issuing certificates—foundational steps you still must get right to avoid overlaps and defects during conversion or re-registration.

c. PP 18/2021 on Rights & Registration; PP 20/2021 on Abandoned Land

The 2021 regulatory suite modernized the landscape. PP 18/2021 tightened rules around old customary proofs and set a five-year deadline to regularize them; PP 20/2021 created clear procedures for penertiban kawasan dan tanah telantar (abandoned areas/land), including for Hak Milik (HM), HGB, HGU, Hak Pakai, and HPL. Together, they elevate evidentiary standards while empowering the state to act on persistent non-use—after due process.

Re-registration of Land Certificates: What Triggers It and Why It’s Crucial

1. Legal Basis, Scope, and “Living Document” Principle

Re-registration is not a one-time chore; it’s how you keep your certificate aligned with current reality (boundaries, split/merge, zoning, use changes, encumbrances). In complex projects, even small mismatches (e.g., outdated boundary data) can derail permits, lender drawdowns, or land consolidation. Treat certificates as living documents that must be refreshed when facts change or when you convert customary proofs into registered rights under national law.

2. Risks of Non-Compliance: Evidentiary Gaps, Deal Friction, and Financing Walls

Failing to re-register or convert leaves you in an evidentiary limbo. Post-2 Feb 2026, relying on Girik/Letter C to prove ownership won’t work; you will face tougher scrutiny in court, lower asset valuations, and bankability problems (banks underwrite certificates, not legacy slips). For developers and PE funds, this raises closing risk, heavier reps & warranties, and broader seller indemnities. Move now to keep your titles finance-ready.

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Customary Land (Hak Ulayat) and Formalization: Bridging Tradition with Title

1. Recognition under National Law and Local Verification

Indonesia recognizes hak ulayat (customary rights), but enforceability in national transactions demands formal registration. Practically, this means engaging both local customary authorities (for verification/acknowledgment) and BPN (for adjudication and registration). It’s not a denial of tradition; it’s the bridge that translates customary legitimacy into bankable rights.

2. Pathways to Conversion: From Girik/Letter C to Registered Rights

Owners typically convert legacy proofs (e.g., Girik, Letter C, Petuk D, Pipil, Kekitir, Landrente, Verponding Indonesia) into registered rights (e.g., HM, HGB, HGU, Hak Pakai). The practical route is via first registration (often using the PTSL program to accelerate mapping, announcements, and adjudication), plus curing gaps with witnesses, boundary agreements, and tax/history documents where available.

NEW: Legal Status of Girik and Other Customary Land Titles After 2 February 2026

1. What Counts as “Alat Bukti Tertulis Tanah Bekas Milik Adat”

Under PP 18/2021 Article 96, the category includes Petuk Pajak Bumi/Landrente, Girik, Pipil, Kekitir, Verponding Indonesia, Letter C, and similar old proofs of individual ownership. These documents historically served as primary evidence for first registration.

2. The Five-Year Deadline Under PP 18/2021 and Its Aftermath

PP 18/2021 took effect on 2 February 2021. It grants a five-year window for individuals holding those old proofs to register. After the window closes on 2 February 2026, the old proofs are no longer valid as evidence of land ownership and cannot be used as standalone proof in disputes or first registration. Instead, they may be treated only as “petunjuk” (indications) assisting the registration process—meaning you’ll need additional corroboration (witnesses, physical occupation, boundaries, historical tax, etc.). This is the crux of the 2026 pivot.

3. What Changes on/after 2 Feb 2026: Proof, “Petunjuk,” and Practical Consequences

Post-deadline, a holder of Girik/Letter C cannot simply present that document and expect BPN or a court to regard it as proof of title. At best, it becomes supporting context. Practically, this elevates the burden of proof, increases time and cost to regularize land, complicates financing, and invites opportunistic claims from third parties. Several legal commentaries and alerts emphasize these consequences and urge immediate conversion to a registered title before the deadline.

4. Not a State Grab: Clarifying Common Misconceptions

There has been viral misinformation that “all unregistered land will be seized in 2026.” The Ministry (ATR/BPN) has explicitly refuted this. The post-2026 change is about evidentiary status, not automatic confiscation. However, failing to register increases dispute risk and can interact with abandoned land rules where registered rights are not used. Don’t conflate the two: no automatic state grab, but stronger incentives to complete registration now.

If your land relies on Girik/Letter C (or similar), convert before 2 Feb 2026. After that, you’ll likely face costlier, slower, and riskier paths to certainty.

State Acquisition of Abandoned Land: When Does the State Step In?

1. Criteria, Process, and Differentiation Across HM/HGB/HGU/HPL

Under PP 20/2021, land can be designated telantar (abandoned) when a right holder intentionally leaves it unused, unmaintained, or not in line with its intended purpose. The regulation covers Hak Milik, HGB, HGU, Hak Pakai, HPL, and land controlled under a basis of possession. Rights such as HGU/HGB are particularly scrutinized if, for example, they remain unutilized within two years after grant (with nuances per right type). Designation follows investigation, warnings, and an administrative process; eventual outcomes can include revocation and reallocation via the land bank or other public purposes.

2. Practical Signs a Parcel Is at Risk—and How to Cure Them

Red flags include long-term inactivity, no evidence of maintenance, lapsed permits, or non-payment of obligations tied to the right. Cures focus on documented utilization (cultivation/construction), timely extensions/renewals, remedial environmental/social compliance, and—critically—paper trails (photos, reports, tax, O&M records) that prove use in line with the right. For large portfolios, implement a compliance calendar with periodic site audits.

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Dispute Patterns to Watch: Overlaps, Expired Proofs, and Boundary Issues

Expect a spike in disputes where one party relies on post-2026 “old proofs” while the other holds a registered title. Courts and BPN will weigh registered data heavily; old proofs may be considered petunjuk only. Boundary overlaps will also surface as PTSL mapping densifies cadastre data. You’ll want survey-grade coordinates, signed boundary agreements with neighbors, and documented physical possession.

Compliance Playbook for Owners, Developers, and Investors

1. PTSL Acceleration, Evidence Mapping, and Boundary Control

Leverage PTSL to fast-track first registration and reduce costs. Prepare a dossier: old proofs, identity/authority docs, tax receipts, history of possession, witness statements, and clear boundary markers (patok) acknowledged by neighbors. Proactive participation in the data announcement period helps flush out objections early—cheaper than defending a lawsuit later.

2. M&A/Lending Readiness: Data Rooms, Reps & Warranties, and CPs

If you’re selling, buying, or financing land-heavy assets, build an evidence map now. For sellers: complete conversion and re-registration pre-deal to maximize value. For buyers/lenders: require condition precedents (CPs) on conversion, robust reps & warranties, indemnities covering legacy documents, and post-closing covenants to cure any residual land admin issues. After 2 Feb 2026, expect lenders to tighten title conditions—plan accordingly.

Practical Commentary from Kusuma & Partners

We routinely see transactions stall because land is still backed by Girik/Letter C with patchy boundary and usage evidence. Our advice is pragmatic:

  • Convert now, not later. After 2 Feb 2026, your old proofs stop being title evidence. You’ll spend more time and money proving what could have been straightforward today.
  • Bundle conversion with clean-up. Align boundaries, renew rights, cure overlaps, and document use to inoculate against PP 20/2021 risks.
  • Institutionalize audits. Annual title-health checks (evidence, boundaries, usage, payments) are cheaper than litigation.
  • For foreign investors/PE: bake conversion and usage proofs into CPs, and price deals accordingly.

Conclusion

This legal reminder on Indonesia land certificates: re-registration, customary rights expiry, and state acquisition of abandoned land is about preserving value and agility. By 2 February 2026, Girik/Letter C and similar proofs lose their evidentiary status; after that, they’re merely petunjuk. Pair timely conversion with disciplined use and maintenance to sidestep abandoned-land pitfalls. The earlier you act, the cheaper and cleaner your outcome.

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“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”

No. Under PP 18/2021 Art. 96, old proofs (Girik, Letter C, etc.) are not valid evidence after the five-year window; they may serve only as “petunjuk” to assist registration. Convert now.

No. ATR/BPN has denied this rumor. The change concerns evidentiary status, not automatic confiscation. Separate rules on abandoned land apply when rights exist but land is intentionally unused.

Examples include Petuk Pajak Bumi/Landrente, Girik, Pipil, Kekitir, Verponding Indonesia, Letter C, and similar documents.

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