Lombok SEZ Land Acquisition Procedure

For prospective investors considering the Lombok Special Economic Zone (Lombok SEZ), understanding the land acquisition procedure is fundamental to project planning and execution. This document outlines the structured, legally compliant framework for acquiring land within the Lombok SEZ, ensuring transparency and clarity for foreign entities. The process is designed to facilitate investment by offering various acquisition modalities, including direct purchase, lease arrangements, and utilization of state-owned land, all overseen by the Lombok SEZ Management Body (BPJS KEK Mandalika) and the National Land Agency (BPN).

Understanding Land Status within Lombok SEZ

The Lombok SEZ comprises designated areas with varying land statuses, which directly influence the acquisition process for investors. Recognizing these distinctions is the initial step in formulating a land strategy.

Designated Area vs. Private/Community Land

Within the Lombok SEZ, land can broadly be categorized into two primary types: land already designated and managed by the Lombok SEZ Management Body (BPJS KEK Mandalika) or its appointed developers, and land that remains under private or community ownership within the zone’s boundaries. The majority of the core development area is managed by PT Pengembangan Pariwisata Indonesia (Persero) or ITDC, a state-owned enterprise acting as the master developer, holding Hak Pengelolaan (HPL) or Right to Manage. This HPL allows the developer to grant derivative rights to investors.

Role of BPJS KEK Mandalika

The BPJS KEK Mandalika serves as the primary coordinating body for all investment activities within the Lombok SEZ. For land acquisition, the BPJS provides guidance on available plots, verifies land status, and facilitates agreements, particularly for land under its management or that of its master developer. This includes ensuring that land use aligns with the Lombok SEZ master plan and zoning regulations. Investors are encouraged to engage with the BPJS early in their planning stages to identify suitable land parcels and understand the specific acquisition pathways relevant to their project.

Primary Modes of Land Acquisition for Investors

Investors in Lombok SEZ have several established options for securing land rights, each with distinct legal frameworks and implications. The choice often depends on the project’s scale, duration, and the investor’s preference.

Utilization of Land with Hak Pengelolaan (HPL)

For significant portions of the Lombok SEZ, the master developer (ITDC) holds Hak Pengelolaan (HPL), or the Right to Manage. Under this arrangement, investors typically acquire derivative land rights, such as Hak Guna Bangunan (HGB – Right to Build) or Hak Guna Usaha (HGU – Right to Cultivate), directly from the HPL holder. This is often the most streamlined path, as the land’s status and usage are already aligned with the SEZ’s development objectives. The BPJS KEK Mandalika facilitates the agreement between the investor and the HPL holder, ensuring compliance with SEZ regulations and the master plan.

Direct Purchase from Private Owners

Where land within the Lombok SEZ is still under private ownership (holding Hak Milik – Freehold Title), investors may opt for direct purchase. This process involves direct negotiation with the private landowner. Critical steps include:

Due Diligence: Thorough verification of the land certificate (Sertifikat Hak Milik) with the National Land Agency (BPN) to confirm ownership, boundaries, and absence of encumbrances.
Negotiation and Agreement: Reaching a mutually agreeable price and terms with the landowner.
Legal Transfer: Execution of a Sale and Purchase Deed (Akta Jual Beli – AJB) before a Notary Public/Land Deed Official (Pejabat Pembuat Akta Tanah – PPAT). The PPAT is responsible for ensuring all legal requirements are met, including payment of taxes.
Registration: The PPAT then registers the transfer of ownership with BPN, which will subsequently issue a new land rights certificate (e.g., Hak Guna Bangunan) in the investor’s name (or their Indonesian legal entity).

Land Lease from Private Owners

Alternatively, investors may choose to lease land from private owners. This involves negotiating a lease agreement specifying the duration, rental fees, renewal options, and other terms. While not a transfer of ownership, a long-term lease can provide sufficient tenure for many investment projects. Lease agreements should be notarized and, for longer durations, may be registered with BPN to provide stronger legal protection for the investor.

The Land Acquisition Process: Key Stages and Stakeholders

Regardless of the acquisition mode, the process involves several distinct stages and key governmental and legal entities, ensuring a structured and compliant transaction.

Initial Inquiry and Investment Plan Submission

The investor’s journey typically begins with an initial inquiry to the BPJS KEK Mandalika. This involves submitting a preliminary investment plan, outlining the proposed project, land area requirements, and intended use. The BPJS will then assist in identifying suitable land parcels within the Lombok SEZ that align with the investment plan and the zone’s spatial planning.

Due Diligence and Verification

Once a potential land parcel is identified, comprehensive due diligence is critical. This stage involves:

Land Status Verification: Confirming the legal status of the land (HPL, Hak Milik, etc.) with BPN and the BPJS.
Zoning and Spatial Planning: Ensuring the proposed land use complies with the Lombok SEZ master plan and local spatial regulations.
Environmental Impact Assessment: Conducting necessary environmental studies (AMDAL/UKL-UPL) as required by Indonesian law, often facilitated by the BPJS.
Boundary Confirmation: Physical verification of land boundaries to prevent future disputes.

Negotiation and Agreement Formulation

This stage involves formalizing the terms of acquisition. For land under HPL, this means negotiating a concession or lease agreement with the HPL holder, facilitated by the BPJS. For private land, it involves negotiating the purchase or lease terms directly with the landowner. All agreements are drafted and formalized by a Notary Public or PPAT, ensuring legal validity and clarity on all clauses, including price, payment schedules, and responsibilities.

Legal Transfer and Registration

The final stage involves the legal transfer of rights and official registration. For direct purchases, the PPAT executes the Sale and Purchase Deed and handles the registration with BPN, leading to the issuance of a new land rights certificate (e.g., HGB). For land under HPL, the derivative right (HGB, HGU) is registered with BPN based on the agreement with the HPL holder. This official registration provides the investor with legally recognized and protected land rights.

Regulatory Framework and Investor Protections

The land acquisition process within the Lombok SEZ is underpinned by a robust legal framework designed to protect investor interests and ensure fair practices.

Governing Laws and Decrees

Land acquisition in Indonesia, and specifically within SEZs, is governed by several key regulations:

Law No. 5 of 1960 on Basic Agrarian Regulations (UUPA).
Law No. 39 of 2014 on Special Economic Zones.
Government Regulation No. 96 of 2021 on Special Economic Zones (replacing GR No. 2/2011).
Various ministerial decrees and regulations issued by BPN and other relevant ministries.

These laws establish the types of land rights available, foreign investment limitations, and the procedures for land transactions. The BPJS KEK Mandalika ensures adherence to these regulations within the Lombok SEZ.

Dispute Resolution Mechanisms

In the event of disputes, investors have recourse through established legal and administrative channels. The BPJS KEK Mandalika can act as a mediator in initial disagreements, particularly those involving the master developer or other SEZ entities. Investors also have access to the Indonesian court system, or, if stipulated in agreements, alternative dispute resolution mechanisms such as arbitration, providing a structured approach to resolving conflicts.

Transparency and Anti-Corruption Measures

The Indonesian government and the BPJS KEK Mandalika are committed to maintaining a transparent and corruption-free investment environment. All land acquisition procedures are documented, and fees are standardized or clearly communicated. Investors are encouraged to work through reputable Notary Publics/PPATs and to report any irregularities to the appropriate authorities. The structured process, involving multiple government agencies, acts as a safeguard against illicit practices.

Costs and Fees Associated with Land Acquisition

Investors should account for various costs and fees beyond the land purchase or lease price when acquiring land in the Lombok SEZ. These typically include:

Land Purchase/Lease Price: The primary cost negotiated with the landowner or HPL holder.
Transfer Fees and Taxes:
- BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan): Land and Building Rights Acquisition Duty, paid by the buyer, typically 5% of the transaction value.
- PPh (Pajak Penghasilan): Income Tax on land transfer, paid by the seller, typically 2.5% of the transaction value.
Notary/PPAT Fees: Fees for the services of the Notary Public/Land Deed Official, which are statutory and vary based on transaction value.
BPN Registration Fees: Administrative fees for registering the new land rights certificate with the National Land Agency.
Due Diligence Costs: Fees for legal counsel, land surveyors, and environmental consultants.

A detailed breakdown of these costs should be obtained during the initial stages of due diligence, often with assistance from the BPJS KEK Mandalika or legal advisors.

Key Land Rights for Investors in Lombok SEZ

Understanding the types of land rights available is crucial for investors planning long-term projects.

Right Type	Description	Initial Duration	Renewability & Extension	Typical Use by Investors
Hak Guna Bangunan (HGB)	Right to construct and possess buildings on state land, HPL land, or Hak Milik land.	30 years	Extendable for 20 years, renewable for another 30 years.	Industrial facilities, commercial buildings, tourism infrastructure, hotels, residential developments.
Hak Guna Usaha (HGU)	Right to cultivate state land for agriculture, plantation, or husbandry purposes.	35 years	Extendable for 25 years, renewable for another 35 years.	Large-scale agricultural projects, plantations, farming. Less common in core tourism areas of Lombok SEZ.
Hak Pakai (HP)	Right to use and/or collect produce from state land or Hak Milik land.	25 years (for individuals/legal entities)	Extendable for 20 years, renewable for another 25 years.	Diplomatic missions, social/religious purposes, specific government projects. Can be used for certain commercial purposes under specific conditions.

Illustrative Land Acquisition Process Flow

This table provides a simplified overview of the typical stages involved in acquiring land within the Lombok SEZ.

Stage	Key Activities	Involved Parties
1. Initial Contact & Inquiry	Investor submits investment plan and land requirements.	Investor, BPJS KEK Mandalika
2. Site Identification & Selection	BPJS identifies suitable land parcels; investor conducts preliminary site visits.	BPJS KEK Mandalika, Investor, HPL Holder (if applicable)
3. Due Diligence	Legal, technical, environmental verification of chosen land parcel.	Investor (with legal/technical advisors), BPN, BPJS KEK Mandalika
4. Negotiation & Agreement	Formal negotiation of terms; drafting of purchase/lease/concession agreement.	Investor, Landowner/HPL Holder, Notary Public/PPAT, BPJS KEK Mandalika
5. Legal Transfer & Registration	Execution of deed; payment of taxes; registration of new land rights with BPN.	Notary Public/PPAT, BPN, Investor, Seller
6. Certificate Issuance	New land rights certificate (e.g., HGB) issued to the investor.	BPN

Frequently Asked Questions

1. Can foreign entities directly own land in Lombok SEZ?

No, foreign individuals or foreign-owned legal entities (PT PMA) cannot hold Hak Milik (Freehold Title) in Indonesia, including within the Lombok SEZ. However, foreign investors can acquire derivative land rights such as Hak Guna Bangunan (HGB – Right to Build) or Hak Guna Usaha (HGU – Right to Cultivate) through their Indonesian legal entity (PT PMA). These rights provide long-term tenure, sufficient for most commercial and industrial developments, and are extendable.

2. What support does BPJS KEK Mandalika offer during land acquisition?

The BPJS KEK Mandalika serves as a crucial facilitator. It provides information on available land, verifies land status, assists in aligning projects with the SEZ master plan, and helps coordinate interactions between investors, the master developer, and government agencies like BPN. The BPJS also offers guidance on permits and ensures the process adheres to SEZ regulations, streamlining the acquisition for investors.

3. How long does the land acquisition process typically take?

The duration of the land acquisition process in Lombok SEZ can vary significantly depending on the land’s status, the complexity of due diligence, and the efficiency of negotiations. For land under HPL, the process can be more expedited, potentially taking several months to formalize agreements and register rights. For direct purchases from private owners, the timeframe may extend due to landowner negotiations and comprehensive due diligence, potentially ranging from 6 to 12 months or longer. Proactive engagement with the BPJS and legal counsel can help optimize this timeline.