Analysis of Land Ownership Rights by Foreign Companies in Indonesia

I Nyoman Gede Sugiartha 1, Loso Judijanto 2, Hamdani 3,

Muhammad Bagus Adi Wicaksono 4, Aisyah 5,

& Mu’adil Faizin 6

https://doi.org/10.62271/pjc.172.47.59

Abstract

This research analyzes legal policies related to foreign companies’ ownership of land rights in Indonesia. Regarding globalization and foreign investment, many international companies are interested in investing in Indonesia, but land ownership regulations limit their investments. This study adopts a normative juridical approach by analyzing relevant laws and regulations, such as the Basic Agrarian Law and provisions governing foreign investment. The analysis reveals that while foreign companies are prohibited from holding land ownership rights, they are allowed to utilize land through Building Use Rights (HGB), Use Rights, and Business Use Rights (HGU). This study also discusses the impact of this policy on the foreign investment climate and provides recommendations for increasing legal certainty to support sustainable foreign investment in Indonesia. This research aims to analyze the legal framework regulating foreign companies’ land ownership in Indonesia, especially regarding types of rights such as Business Use Rights (HGU) and Building Use Rights (HGB). The recommendation from the results of this research is that regular evaluation of agrarian policies is needed to maintain relevance to developing social and economic conditions and develop more effective and fair land dispute resolution mechanisms.

Keywords: Land Rights, Ownership, Foreign Companies.