Navigating Land Conversion Permits in Indonesia

Indonesia’s fertile agricultural land is a national treasure, and the government treads carefully when it comes to conversion for development purposes. While land conversion can unlock economic growth, strict regulations are in place to ensure a sustainable balance. 

If as a businessman you are eyeing some agricultural land for some other utilization, this article will tell you the process of applying for a land conversion permit. The specific procedure involves the crucial documents needed and the challenges you might face during the conversion process.   

Overview of Land Conversion in Indonesia 

Land conversion in Indonesia is primarily governed by Law No. 41 of 2009, which focuses on the protection of sustainable food agricultural land. This law imposes strict regulations to prevent the unauthorized conversion of agricultural land, with severe criminal penalties for government officials who issue conversion permits contrary to the provisions.

However, the Job Creation Law of 2020 introduced new opportunities for land conversion, expanding permissible criteria. Under this law, agricultural land can now be converted for:

* Upstream and downstream oil and gas industrial areas

* Special economic zones

* Industrial zones

* Tourism development areas

* Food security areas

* Technology development zones  

Requirements to Apply Land Conversion Permits 

To apply for a land conversion permit, applicants must prepare several key documents and follow a detailed procedure: 

Essential Documents: 

1. Valid Identification: Indonesian applicants must provide a KTP (Identity Card), while foreigners need a valid passport or limited stay permit.

2. Land Certificate/Status: A document proving the land’s current status and its intended use.

3. Proof of Land and Building Tax Payment: This demonstrates that the applicant is up-to-date with tax obligations.

4. Spatial Planning Certificate: Issued by the regional Public Works and Spatial Planning Department, this certifies that the proposed land use aligns with regional spatial plans.

5. Land Technical Consideration: This document from the Land Office or National Land Agency assesses the technical feasibility of the land conversion.

6. Land Use Plan Drawing: A detailed plan showing how the land will be used post-conversion. 

Submission Process : 

1. Application Submission:  After all required documents are complete, submit the completed application to the Investment and Integrated Licensing Service in your area.

2. Document Review and Inspection: The technical team will review your documents and conduct a field inspection.

3. Technical Recommendations: The Investment and Integrated Licensing Service will request recommendations from various agencies:

– Agriculture Service for agricultural impact

– Regional Spatial Planning Coordination Team for spatial alignment

– Land Office/National Land Agency for land technical considerations 

Procedure for Land Conversion Permit Application 

– Form Submission: Fill out the application form and submit it along with all required documents.

– Technical Evaluation: The Investment and Integrated Licensing Service will coordinate with relevant agencies for technical evaluations.

– Permit Issuance: If all requirements and technical recommendations are met, the permit will be issued.

– Rejection: If the application or documents are incomplete or fail to meet the criteria, a rejection notice will be issued. 

Effective coordination with relevant agencies is crucial. If discrepancies arise in data or other related matters, ensure timely communication with the Investment and Integrated Licensing Service and other involved departments to resolve these issues.  

Expert Guidance for Your Land Conversion Permit   

Seven Stones Indonesia understands that dealing with the land conversion permit in Indonesia involves complicated procedural steps. With our in-depth knowledge of business regulations and a proven track record in managing permitting processes, our legal team will streamline your land conversion application. 

Contact Seven Stones Indonesia today to discuss the details of your property and the development plan. Our experts are ready to offer comprehensive professional assistance.