Many foreign landowners in Bali purchase land hoping to build a villa or start a business 🌿. But under Indonesia’s Abandoned Land Law (PP No. 20/2021), property left idle too long can be declared tanah terlantar — or abandoned land. This means ownership rights, even for long-term holders, can be revoked by the government.
The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) oversees land monitoring and defines when unused plots are subject to reclamation. Foreign investors often don’t realize that even temporary neglect — such as unbuilt property or unpaid maintenance — can trigger review 💼. The process is formal, but once declared abandoned, the land returns to state control.
To stay compliant, foreign landowners should file land use reports and maintain active usage according to the rules set by the Indonesian Investment Coordinating Board (BKPM). Those leasing or managing through PT PMAs must also ensure financial compliance through the Directorate General of Taxes, as tax inactivity may flag properties for inspection ✨.
By understanding these requirements and acting early 🌏, you protect your investment and secure your property rights legally. The key is continuous documentation, land use verification, and professional advice — your best defense against losing land you’ve worked hard to own.
Table of Contents
- Overview of Indonesia’s Abandoned Land Law (PP No. 20/2021) 🏝️
- Key Definitions Under the Abandoned Land Law Indonesia 💼
- Why Foreign Landowners Bali Need to Understand This Law ⚠️
- How to Comply With Indonesia’s Abandoned Land Law Properly 📋
- Common Mistakes Foreign Landowners Make With PP No. 20/2021 ✨
- Legal Risks and Penalties for Foreign Landowners in Bali 🌏
- Steps to Protect Land Ownership Rights in Indonesia 💰
- Real Story – How a Foreigner Lost Land Under PP No. 20/2021 🌿
- FAQs About Abandoned Land Law Indonesia for Foreign Owners ❓
Overview of Indonesia’s Abandoned Land Law (PP No. 20/2021) 🏝️
The abandoned land law Indonesia, or PP No. 20/2021, aims to prevent land hoarding and promote responsible use 🌿. It allows the government to reclaim land that has been left unused for an extended time. This includes land under Hak Pakai, HGB, or Hak Milik titles if owners fail to develop or maintain it.
For foreign landowners Bali, this means simply holding land without active use can lead to warnings and eventual state takeover. The law is designed to ensure every plot contributes to public and economic benefit. Understanding this helps owners plan development and avoid losing valuable assets 💼.
Key Definitions Under the Abandoned Land Law Indonesia 💼
Under PP No. 20/2021, abandoned land is land granted by the state that remains unused or underutilized beyond a specified period ⏳. This includes land left empty, leased but unmonitored, or unregistered with the local land office.
Authorities define “use” broadly — building structures, planting crops, or demonstrating clear maintenance all count. For foreign landowners Bali, documenting these activities proves compliance. Without proof, your land may enter an evaluation stage and later be seized by the state. So, even partial use is better than none ✨.
Why Foreign Landowners Bali Need to Understand This Law ⚠️
Many foreign investors purchase property in Bali as a long-term investment 🌏. However, under abandoned land law Indonesia, unused land can be classified as “abandoned” after three years of inactivity. This law directly affects foreigners who buy through local companies or leases.
Ignoring the rules could result in cancellation of land rights or loss of ownership through official reclamation. To protect investments, landowners must follow activity guidelines and report usage to the relevant authorities. Knowledge here equals protection 💡.
How to Comply With Indonesia’s Abandoned Land Law Properly 📋
Compliance doesn’t have to be complicated. To follow PP No. 20/2021, foreign owners should register their land use with the land office, maintain physical development, and ensure taxes are paid regularly 💰.
Creating simple documentation like maintenance logs, photos of activity, or renovation receipts can demonstrate active use. Landowners managing property through a PT PMA should also align reports with company business plans. These actions show transparency and prevent your land from being flagged as idle 🌿.
Common Mistakes Foreign Landowners Make With PP No. 20/2021 ✨
A frequent mistake is assuming owning land equals compliance. Many foreign landowners Bali buy plots through leases or local partners, then leave them unused. Without showing progress or occupation, the land becomes vulnerable 🚫.
Another issue is neglecting administrative duties. Not updating land records, paying taxes late, or missing inspection deadlines are red flags. These oversights can invite government warnings. Taking proactive steps now saves years of stress later 💼.
Legal Risks and Penalties for Foreign Landowners in Bali 🌏
Under abandoned land law Indonesia, authorities can issue written warnings up to three times 📑. If ignored, they may revoke land rights or reclaim ownership without compensation. This process is enforceable through the National Land Agency.
For foreign owners, penalties don’t stop at land loss — unpaid taxes or violations can also block visa renewals or business operations. Understanding the legal process and responding quickly ensures you stay compliant and keep your investment secure 💪.
Steps to Protect Land Ownership Rights in Indonesia 💰
To safeguard property, every foreign landowner Bali should actively manage and document land use. Start small — plant, build, or lease part of it productively 🌺.
Keep your land tax updated and renew your certificate on time. If the land is under a company, align your PT PMA activities with your stated investment purpose. Hiring a local legal advisor or consultant ensures every step meets official requirements and avoids misunderstandings later on ✨.
Real Story – How a Foreigner Lost Land Under PP No. 20/2021 🌿
Meet Lars, a 42-year-old investor from Sweden, who bought 2,000 m² of land in Uluwatu 🏝️. He planned to build a villa but delayed development for over three years. One day, Lars received a letter from the National Land Agency notifying him that his property was under review for abandonment.
He hadn’t registered any usage, paid maintenance taxes irregularly, and left the plot empty. Within months, authorities reclaimed it under PP No. 20/2021. Shocked, he consulted a legal expert but was told it was too late.
Lars’s story reflects the full PASTEA path — a clear problem, ignored warnings, and an irreversible outcome. His case reminds all foreign landowners Bali to stay compliant, act early, and never assume ownership alone guarantees safety 💼.
FAQs About Abandoned Land Law Indonesia for Foreign Owners ❓
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What is PP No. 20/2021?
It’s a regulation preventing unused or neglected land from staying idle by allowing state reclamation.
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Can foreign landowners lose their property in Bali?
Yes, if it remains unused or unregistered for over three years.
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How can I prove my land is being used?
Keep records, photos, and tax receipts showing continuous activity 🌿.
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Does the law apply to leased property?
Yes, even leased land must show productive use under the agreement terms.
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Who enforces abandoned land law Indonesia?
The Ministry of Agrarian Affairs and National Land Agency monitors and enforces compliance.
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Can I recover land once it’s declared abandoned?
No, once officially revoked, ownership rights cannot be restored ✨.
