Draft Bill on Land Will Require Annual Supervision and Evaluation of HGU Implementation

Muhammad Khozin, a member of Commission II of Indonesia’s House of Representatives (“DPR RI”), proposed that the Draft Bill on Land (“Draft Bill on Land”) require the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (“ATR/BPN”) to conduct regular annual supervision and evaluation of Right to Cultivate (Hak Guna Usaha - “HGU”) holders. Such supervision should not be carried out merely on a passive basis, but through direct field inspections.

Khozin considered that supervision and evaluation of HGU holders have so far not been carried out optimally. This is because the existing regulations do not expressly require the government to conduct direct and routine supervision of land rights holders. “Although such provisions are already set out in Regulation of the Minister of ATR/BPN No. 18 of 2021 (“PermenATR/BPN 18/2021”), they will be further strengthened under the new regulations,” he stated.

Khozin stated that the draft legislation would provide for strict and comprehensive implementation of field monitoring and evaluation to ensure compliance by the right holders. The inspections would cover, among other matters, compliance with spatial planning and environmental requirements, as well as the accuracy of land boundary markers, to ensure that rights holders do not encroach upon land outside their authorized areas.

Technically, Khozin further explained that the field monitoring and evaluation would be conducted by regional offices of BPN. The results of these activities would serve as a determining factor in the continuation of HGU grants. “If there is a violation, a warning will be issued. If the warning is ignored, the right will be revoked,” he said.

Khozin expressed the hope that routine supervision and evaluation would help minimize and accelerate the resolution of agrarian disputes. According to him, this measure is important to provide fair and timely legal certainty for the public.