The 2 February 2026 land-registration deadline has passed: What project owners should do now

Land registration
  • September 2026

At a glance

By 2 February 2026, customary land documents (e.g., Girik, Letter C) will no longer serve as valid proof of ownership, but only as supporting evidence in land registration. Therefore, registration is advised to obtain a land certificate and strengthen the legal standing of land ownership.

Bankability risk:

Uncertificated land generally cannot be mortgaged, may complicate permitting, and increases dispute risk.

Corporate acquisition path:

Companies cannot directly acquire Hak Milik (freehold) on uncertificated land; use a Deed of Release of Rights (Akta Pelepasan Hak or APH) and apply for a formal title (typically right to build/Hak Guna Bangunan or HGB).

Uncertificated land (including land held under Land Possession or penguasaan atas tanah) that is intentionally left uncultivated, unused, unutilized, and/or unmaintained may be subject to Idle Land (tanah telantar) inventory, potentially leading to further evaluation by the authorities, administrative warnings. If non-compliance persists and the land is formally designated as Idle Land, the land rights or legal control will be revoked depending on the land’s legal status, followed by its reclassification as state-controlled land.

I. Why the deadline matters

In Indonesia, legal proof of land ownership is a land certificate issued by the local Land Office (Kantor Pertanahan) of the National Land Agency (ATR/BPN). Many parcels are still recorded under customary instruments such as Girik, Letter C or a Land Information Letter (Surat Keterangan Tanah or SKT). These documents may evidence historical possession, but do not provide the certainty and protection of a land certificate. Formal registration and certification are therefore required, and for certain customary documents, should ideally be completed by 2 February 2026.

II. What changed after 2 February 2026

Historically, Indonesia has imposed deadlines for land regularization. For example, Minister of Home Affairs Regulation No. 3 of 1979 required conversion of former western rights by 24 September 1980, after which unconverted land became state-controlled.1 This underscores a recurring policy to standardize land ownership based on the existing documentation with the prevailing regulations, similar to today’s registration mandate.

  • Key legal instruments: Government Regulation No. 18 of 2021 on Right to Manage, Land Titles, Multistory Housing Units and Land Registration (GR 18/2021), Government Regulation No. 24 of 1997 on Land Registration (GR 24/1997), Government Regulation No. 48 of 2025 on the Control of Idle Land and Areas (GR 48/2025) and ATR/BPN Regulation No. 16 of 2021 on Land Registration (ATR/BPN Reg 16/2021).
  • Requirement: Written evidence of ownership under customary law (e.g., Girik, Letter C) should be registered within five years of GR 18/2021’s enactment, by 2 February 2026 to ensure compliance and legal standing.
  • After the deadline: These documents are no longer valid evidence of land rights and may only support the registration process. Failure to register by the deadline will not trigger confiscation by the state, but it will significantly weaken legal standing and increase exposure to third-party claims.
  • Status of the land: The land does not automatically become state land, but lack of certification may make the rights harder to defend.
  • SKT: SKT is not itself classified as written evidence of land rights and is not subject to the deadline. However, an SKT alone is not proof of ownership. Registration remains advisable.
  • A land certificate is a strong proof of land ownership and is presumed valid unless proven otherwise. However, it is important to note that Indonesian agrarian law recognizes other forms of evidence such as:
    • Written instruments, including but not limited to grosse deed of eigendom rights, deed of waqf declaration, tax receipts and traditional land tax documents such as Girik, Petuk Pajak Bumi/Landrente, Pipil, Kekitir, and Verponding Indonesia);2
    • Physical possession for 20 consecutive years in good faith, supported by witnesses and community acknowledgement.3

Nonetheless, it is still advised that owners with written evidence under customary law register and obtain a certificate to strengthen legal standing.

  • Uncertificated land held under Land Possession may be subject to Idle Land assessment if it is intentionally left unused, unutilized or unmaintained. This includes circumstances where such land remains unused for at least two years from the issuance or creation of the basis of land possession.4
  • Under GR 48/2025, Idle Land procedures are initiated through an inventory and evaluation process and may be followed by successive administrative warnings if no corrective action is taken.5 If non-compliance persists after the administrative warnings, the land shall be designated as Idle Land.6
  • Once land is formally designated as Idle Land, the legal possession shall be terminated, the land will be designated as state controlled land and may be allocated for public interest purposes, including as an Asset of the Land Bank or Tanah Cadangan Umum Negara.7 This is particularly relevant where uncertificated land remains unregistered beyond the statutory deadline, as it may leave the land more susceptible to Idle Land inventory.
  • It is important to note that Idle Land status is not irreversible. Under GR 48/2025, land under Land Possession may be removed from the Idle Land database if (i) there is no element of intentional failure to cultivate, use, utilize, and/or maintain the land or (ii) the land has been cultivated, used, utilized, and/or maintained. 8
  • 9Potential disputes: in practice, legal dispute cases are assessed and analyzed on a case-by-case basis. BPN will act only after a final and binding court decision is issued.  

Why project owners should act now

  • Financing: Lenders typically require certified titles; uncertificated land cannot be mortgaged and may block drawdowns.
  • Permitting: Construction and operational permits (e.g., Persetujuan Bangunan Gedung or PBG, environmental approvals) often depend on clear title.
  • Schedule and cost: Delay can increase dispute, compensation, and redesign risk.
  • Right of Way (RoW)/utility corridors: Grid, pipeline and access roads frequently cross uncertificated parcels—plan early to avoid bottlenecks.
  • Uncertificated land that is designated as Idle Land may be subject to the termination of its legal possession. This risk is also relevant for infrastructure projects, particularly if project sites remain unused while awaiting financing or permits with no clear timeline.  

III. Corporate acquisition route

Companies cannot acquire ownership rights (Hak Milik) over uncertificated land via a standard sale and purchase. Instead, they must follow an indirect route involving several legal and administrative steps:

  • Indirect acquisition: The land must first be released to the state through Akta Pelepasan Hak (APH) before a land deed official (Pejabat Pembuat Akta Tanah or PPAT—usually a notary or sub-district head). The village head and village administrator act as witnesses.
  • Effect: The landowner releases their rights in exchange for compensation; the buyer obtains priority to apply for a formal title.
  • Corporate title: After APH, companies typically apply for HGB or other appropriate rights. This route aligns with agrarian law, under which Hak Milik is generally reserved for Indonesian individuals.

IV. First-time registration where SKT is the primary document

After APH (if applicable), uncertificated land supported by SKT proceeds through first-time (sporadic) registration at the local Land Office. In practice, the process involves the following:

  • Document preparation (illustrative list; local requirements may vary): 
    •  SKT, Girik, Letter C or other customary evidence.
    • Applicant’s ID (Kartu Tanda Penduduk/KTP) and family card (Kartu Keluarga/KK).
    • Two non-family witnesses (with KTP), acknowledged by the village/sub-district, attesting to the land’s history.
    • Current-year Land and Building Tax (Pajak Bumi dan Bangunan/PBB) payment proof.
    • Statement of physical possession (Sporadik), acknowledged by the village/sub-district.
    • Letter of non-dispute from village/sub-district authorities.
    • Map/floor plan (from village or BPN measurements).
    • Inheritance letter (if applicable).
    • Deed of transfer (sale/purchase, grant, exchange) or APH (for indirect transfers).
    • Any other documents required by the Land Office.
  • Verification: ATR/BPN reviews documents and witness statements.
  • Decision and announcement:
    • Issuance of a Decree Granting Land Title (Surat Keputusan Pemberian Hak, SKPH) by the competent ATR/BPN authority (regency/province/national level, depending on area thresholds).
    • Public announcement in the local village for approximately 30 working days.
    • If no objections arise, the Land Office issues the land certificate.

SKT does not require periodic renewal unless there are changes in ownership, boundaries or status.

V. Action checklist

Proactive compliance serves as a strategic advantage for owners. Early land registration is an opportunity to strengthen bankability, mitigate risk, and enhance investment value. Recommended actions include:

  • Map and audit: Identify all parcels, classify documentation (Girik, Letter C, SKT and certificates) and flag high-risk tracts along critical corridors (plants, Right of Way, access).
  • Start or continue registration: Review the evidence promptly and sequence the APH process, measurements, and filings.
  • Engage communities: Line up witnesses and village/sub-district acknowledgements early; prepare fair compensation frameworks for APH.
  • Align permitting/financing: Coordinate land registration milestones with permitting, lender Conditions Precedent, and Engineering, Procurement, and Construction (EPC) mobilisation to avoid rework.
  • De-risk contracts: Build registration obligations and long-stop dates into land acquisition, EPC and financing agreements; include remedies for delays and disputes.
  • Demonstrate land use: To avoid the land being inventoried as idle, owners should document factual use, maintenance activities, and any temporary utilization. Furthermore, early response to any inquiry from the relevant authorities is essential.

VI. How PwC Legal Indonesia can help

  • Legal analysis of land status, title strategy (APH to HGB) and regulatory risks.
  • End-to-end support for registration and land due diligence, including coordination with ATR/BPN.
  • Stakeholder engagement planning (witnesses, village/sub-district approvals) and compensation frameworks.
  • Integration with permitting, financing and EPC schedules to protect the project’s critical path.
Footnote

1Article 1 Minister of Home Affairs Regulation No. 3 of 1979 on Provisions on Applications and Granting of New Rights over Land Originating from Conversion of Western Rights.

2Elucidation of Article 24 paragraph (1) GR 24/1997.

3Article 24 paragraph (2) GR 24/1997.

4Article 6 paragraph (5) GR 48/2025.

5Article 22 paragraph (3) GR 48/2025.

6Article 19 paragraph (1) GR 48/2025.

7Article 30 paragraph (3) and Article 35 GR 48/2025.

8Article 37 paragraph (1) letter (a) and (b) GR 48/2025.

 

Indra Allen

Partner, PwC Indonesia

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Puji Atma

Junior Partner, PwC Indonesia

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Agnes Wardhana

Junior Partner, PwC Indonesia

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