The Indonesian Land Bank Authority, formally known as Badan Bank Tanah, is a specialized central government agency (sui generis) established to manage land availability for national development and social justice. Its legal existence was institutionalized through Chapter VIII of Law No. 11 of 2020 on Job Creation, which was subsequently reaffirmed by Law No. 6 of 2023. The operational framework is further governed by Government Regulation (PP) No. 64 of 2021 regarding the Land Bank Authority and Presidential Regulation (Perpres) No. 113 of 2021 concerning the Structure and Operation of the Land Bank Authority.

The Land Bank Authority is defined under Article 1 of PP No. 64/2021 as:

“Badan Bank Tanah adalah badan khusus (sui generis) yang merupakan badan hukum Indonesia yang dibentuk oleh Pemerintah Pusat yang diberi kewenangan khusus untuk mengelola Tanah.” (The Land Bank Authority is a special entity (sui generis) which is an Indonesian legal entity formed by the Central Government that is given special authority to manage land.)

Unlike commercial land banks, the Badan Bank Tanah is a non-profit-oriented entity designed to ensure land availability for public interest, social interest, national development, economic equity, and agrarian reform. It operates with financial independence and is accountable directly to the President through the Land Bank Committee.

Institutional Structure

The governance of the Land Bank Authority is divided into three distinct tiers as stipulated in Perpres No. 113/2021:

  1. The Committee (Komite): Chaired by the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (BPN), with members including the Minister of Finance and the Minister of Public Works and Housing. The Committee establishes strategic policies.
  2. The Supervisory Board (Dewan Pengawas): Comprising seven members—four from the government and three professionals appointed by the President. They oversee the implementation of policies by the Executive Board.
  3. The Executive Board (Badan Pelaksana): Responsible for the day-to-day operations, planning, and execution of land management activities.

Functions and Authorities

According to Article 3 of PP No. 64/2021, the Land Bank Authority performs five primary functions:

  • Planning: Developing long-term, medium-term, and annual work plans for land acquisition and utilization.
  • Acquisition: Securing land from various sources to build a land reserve.
  • Management: Conducting land clearing, maturation, and infrastructure provision.
  • Utilization: Determining the use of land for third parties or government projects.
  • Distribution: Allocating land for social purposes and agrarian reform.

The Authority is granted the power to determine the tariff for land use and to enter into cooperation agreements with third parties, including private developers and state-owned enterprises.

Land Sources

The Land Bank Authority acquires its land inventory from several sources defined in Article 7 of PP No. 64/2021:

  1. Land resulting from government-stipulated rights (e.g., expired or revoked Hak Guna Usaha or Hak Guna Bangunan).
  2. Abandoned land (tanah terlantar).
  3. Land from the release of forest areas.
  4. Land resulting from the settlement of agrarian disputes and conflicts.
  5. Land resulting from land acquisition for public interest.
  6. Land from the central government, regional governments, or state-owned/regionally-owned enterprises.
  7. Land from private parties or individuals.

Land Rights and Tenure

The Land Bank Authority holds the Right of Management (Hak Pengelolaan or HPL) over the land in its inventory. This HPL grants the Authority the power to utilize the land directly or to grant secondary rights to third parties. Under Article 126 of Law No. 11/2020, the Land Bank can facilitate the issuance of the following rights on top of its HPL:

  • Hak Guna Bangunan (HGB - Building Rights).
  • Hak Pakai (HP - Right to Use).
  • Hak Pengelolaan (HPL - for specific government or social entities).

The duration of these secondary rights follows standard Indonesian land law (typically 30 years for HGB, extendable for 20 and renewable for 30), but the Land Bank acts as the primary manager and lessor.

Distribution for Agrarian Reform

A critical mandate of the Land Bank Authority is its role in social equity. Article 20 of PP No. 64/2021 mandates that the Land Bank must allocate a minimum of 30% of the land it manages for the Agrarian Reform program (Reforma Agraria). This land is distributed to eligible citizens for free or at a subsidized rate to support housing, agriculture, and local economic empowerment.

Financial Provisions

The initial capital of the Land Bank Authority is sourced from the State Budget (APBN), totaling at least IDR 2.5 trillion, as provided in Article 23 of PP No. 64/2021. Subsequent funding is derived from:

  • Own revenues (tariffs for land utilization).
  • Loans or grants.
  • Other legitimate sources in accordance with statutory provisions.

The Authority is exempt from certain taxes and levies related to land acquisition for public interest, though third parties utilizing Land Bank land remain subject to standard taxation (e.g., BPHTB and PBB).

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