The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (“Ministry”) has introduced a New Regulation* to refine the delegation of authority for determining land rights and conducting land registration activities. The measure aims to improve service efficiency and facilitate investment, particularly in strategic zones such as the Batam Free Trade and Free Port (“Batam”) and the Capital City of Nusantara.
Under the New Regulation, certain powers previously held by the Ministry are delegated — and in some cases sub-delegated — to Heads of Regional Offices and Heads of Land Offices. The scope of authority is determined by factors including geographic conditions, population density, land area, land value, and potential risk of disputes. A key feature is the special allocation of authority in Batam and Capital City of Nusantara to accelerate the investment process in these priority areas.
In the Batam Free Trade and Free Port, the Head of the Regional Office is authorised to grant the Right to Build (Hak Guna Bangunan or HGB) to legal entities on state land for areas of up to 250,000 square metres, and on land under a Right to Manage (Hak Pengelolaan or HPL) for areas exceeding 1,000,000 square metres but not more than 2,000,000 square metres. For the Right to Use (Hak Pakai or HP), the Regional Office may grant rights to legal entities on non-agricultural state land up to 250,000 square metres, and on non-agricultural HPL land between 1,000,000 and 2,000,000 square metres. The Head of the Land Office may grant HGB to legal entities on HPL land for areas up to 1,000,000 square metres, and HP on non-agricultural HPL land for areas of up to 1,000,000 square metres.
In the Capital City of Nusantara, the regulation centralises decision-making at the Regional Office level. The Head of the Regional Office has sole authority to grant HGB for legal entities on HPL land within the Nusantara area, as well as HP for legal entities on HPL land — whether agricultural or non-agricultural — within the same jurisdiction.
By reallocating decision-making closer to the regional level, the regulation is expected to shorten approval timelines, enhance investment certainty, and ensure land administration in these high-priority regions is more responsive to local and strategic needs.
*Minister of Agrarian Affairs and Spatial Planning/National Land Agency Regulation No. 5 of 2025 on the Delegation of Authority for the Determination of Land Rights and Land Registration Activities.