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| Indonesian Minister: Foreigners Cannot Own Islands in Indonesia, Here’s Why. |
Jakarta – Indonesia’s Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Nusron Wahid, has firmly addressed the public concerns regarding the alleged buying and selling of Indonesian islands by foreign entities.
Speaking during a hearing with Commission II of the Indonesian House of Representatives (DPR RI) on July 1, 2025, Nusron emphasized:
“Land in Indonesia, especially in the form of Freehold Title (Sertipikat Hak Milik), can only be owned by Indonesian citizens. It cannot be owned by foreigners.”
Backed by National Law
Nusron cited Law No. 5 of 1960 on Basic Agrarian Principles, which restricts land ownership rights exclusively to Indonesian citizens. In cases involving Right to Build (Hak Guna Bangunan or HGB), the owner must be an Indonesian legal entity, not a foreign one.
“There’s no legal loophole that allows foreign ownership of land in Indonesia,” he stressed.
The Minister also pointed to the importance of regulating island ownership and management. Under Law No. 27 of 2007 and its amendment, Law No. 1 of 2024, at least 30% of a small island must remain under state control.
This allocation ensures space for public interests, protected areas, and emergency evacuation zones.
“No individual or entity is allowed to own 100% of an island. A portion must remain under state ownership and benefit the public,” Nusron said.
The session was attended by the full leadership and members of Commission II of the DPR RI, as well as senior officials from the Ministry of ATR/BPN, including special staff, experts, and advisors to the Minister.
