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.
Uncertificated land generally cannot be mortgaged, may complicate permitting, and increases dispute risk.
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.
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.
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.
Nonetheless, it is still advised that owners with written evidence under customary law register and obtain a certificate to strengthen legal standing.
Why project owners should act now
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:
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:
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:
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.