On 4 February 2011, The Indonesian National Land Agency (“BPN“) has issued a regulation that BPN Regulation No.2 of 2011 concerning the Technical Considerations to Issue Location Permits, Location Stipulations and Approvals of Land Use Change (“permit”) (“Regulation“)
Pursuant to Article 3 of Regulation, due to issuing the Permit, the authorize government agency shall make sure that Permit are: (i) does not harm public interest; (ii) does not interfere with the utilization of the surrounding land; (iii) complies with the sustainability principle; (iv) due regard to the principle of justice; and (v) comply with the prevailing laws and regulations.
The above technical considerations are further elaborated in the Annex I Regulation concerning Technical Guidance for Land Utilization and Annex II of Regulation sets forth the procedures for the issue of the Technical Guidance.
The regulation also assigns the different levels of the Land Office to supervise and monitor the implementation of the Permits’ provisions. In regard to the Location permit in particularly, the results of the aforementioned monitoring may be a material consideration for the cancellation of a Location Permit.
The Regulation has been in force since 4 February 2011.