Indonesia's Land Bank (Badan Bank Tanah): PP 64/2021 in English

The body that receives the land Indonesia takes back and puts it to use. It holds hak pengelolaan, so some HGB and hak pakai on offer may sit on its land.

PP 64/2021, the articles a land buyer meets, in order

The Land Bank is the body that receives the land Indonesia takes back — abandoned plots, expired rights, reclaimed land — and puts it to use. For a Bali buyer it matters in two ways: it is a holder of hak pengelolaan, so some HGB and hak pakai on offer may sit on its land; and it is where land taken back under the abandoned-land rules ends up.

What the Land Bank is, and what it does with land

It is a special (sui generis) Indonesian legal entity formed by central government with special authority to manage land (PP 64/2021 art. 1(1)), set up to secure land for the public interest, social interest, national development, economic equity, land consolidation and agrarian reform (PP 64/2021 art. 2(2)). Its functions are planning, acquiring, procuring, managing, using and distributing land (PP 64/2021 art. 3(1)), and it is transparent, accountable and non-profit (PP 64/2021 art. 4). At least at least 30% of the State land allocated to the Land Bank is reserved for agrarian reform (PP 64/2021 art. 22(2)).

Its land comes from former-right land, abandoned areas and land, released forest land, accreted land, reclaimed land, former mining land, small islands, land affected by spatial-plan changes, and land no one controls (PP 64/2021 art. 7). Two of those sources connect to rules this site has covered: abandoned land, which since November 2025 can be designated in a matter of months, and land affected by spatial-plan changes. Abandoned land.

Development and use

It may develop infrastructure for industrial estates, tourism areas, agriculture, special economic zones and other economic areas (PP 64/2021 art. 11(2)), and make land available by sale, lease, business cooperation, grant, exchange, or another agreed form (PP 64/2021 art. 14(2)). Tourism areas are on that list — which, on our reading, is how Land Bank land could reach a Bali investor: as a right over its HPL under a cooperation agreement.

Rights over Land Bank land

Land the Land Bank manages is held as hak pengelolaan (PP 64/2021 art. 40(1)), and over it others may hold HGU, HGB and hak pakai (PP 64/2021 art. 40(2)). Those rights may be mortgaged (PP 64/2021 art. 40(8)). The rules of HPL apply: the holder’s approval at the grant, its recommendation for later dealings, a land-use agreement. Rights on HPL land.

One provision is particular to the Land Bank. It guarantees extension and renewal under the conditions in the agreement, and may grant them together once the land is used as agreed (PP 64/2021 art. 40(5)-(6)). The guarantee is only as good as the agreement’s conditions, and the cooperation can be ended if the land is transferred, damaged, abandoned or not used as agreed, after at most two written warnings (PP 64/2021 art. 38(1)-(2)). If the Land Bank changes its plan for the land, it must notify the land user first (PP 64/2021 art. 39) — notice, not consent.

Who the Land Bank serves, and where its land goes

Besides designated land, it acquires land from others by purchase, gift, exchange, release of rights, or another lawful acquisition (PP 64/2021 art. 8(2)). Under the public-interest heading it secures land for roads, ports, power, hospitals and other public works, and also industrial estates, special economic zones and tourism areas (PP 64/2021 art. 17). It distributes land to ministries and agencies, regional governments, social and religious organizations, and communities designated by central government (PP 64/2021 art. 15(2)).

Most of its land stays HPL. The exception runs one way: Land Bank land may be released to the community as hak milik once it has been used well for low-income housing, farming or plantations for at least 10 years (PP 64/2021 art. 41). That route leads to hak milik, which only citizens may hold, so it is not a route for a foreign buyer. For a foreigner the Land Bank is a counterparty for a right over its HPL, nothing more.

What we have not read

The Land Bank’s own regulations on cooperation agreements, and any list of its holdings in Bali. We do not say which Bali land, if any, the Land Bank holds.

This is commentary, not legal advice. The official Indonesian text on JDIH BPK is the authority.

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