Decades-long dispute ends in execution, state assets return

The execution process for the Hotel Sultan land in the Gelora Bung Karno (GBK) area, Jakarta, has once again drawn public attention to one of Indonesia’s longest-running asset disputes. The issue is rooted in differing views on the relationship between the Building Use Rights (HGB) held by PT Indobuildco and the Land Management Rights (HPL) held by the state over the Gelora Bung Karno complex. The latest chapter occurred in June 2026, when the land execution process began to be carried out by the Central Jakarta District Court. This step marks the most significant development since the conflict first emerged. Despite ongoing resistance from the hotel management, the government is relying on various court rulings that have reinforced the status of the area as part of state assets. On the other hand, the government has assured it will manage the fate of former Hotel Sultan employees after the execution process of taking over state-owned assets, beginning with a census.