Kadin Highlights Land Disputes and Investment Certainty in Industrial Zone Bill
Bisnis.com, JAKARTA — The Indonesian Chamber of Commerce and Industry (Kadin) has revealed that overlapping permits and land issues remain the primary obstacles to the expansion and legal certainty of industrial zone development.
Kadin’s Deputy Chairman for Agrarian Affairs, Spatial Planning, and Industrial Zones, Sanny Iskandar, stated that these overlaps often trigger disputes over land conversion on the ground. As a result, the investment climate for industrial zones is overshadowed by the weakening of land ownership rights.
“Lately, problems have been occurring frequently, perhaps due to the spirit of food security, so now there are often overlaps regarding land conversion to support raw rice fields, protected rice fields,” Sanny said during a working meeting with Commission VII of the Indonesian House of Representatives (DPR RI) on Wednesday (24/6/2026).
Sanny explained that these clashes even affect land that has officially been certified and has been in operation for decades. The land is only discovered not to be “clean and clear” when business owners attempt to extend their Building Rights Title (HGB).
“When they [business owners] want to extend for another 20 years after 30 years, it turns out that the map at the National Land Agency (BPN) overlaps with the map of a specific technical ministry, particularly the Ministry of Agriculture and the Ministry of Forestry,” he added.
Furthermore, business actors believe the government needs to clearly regulate the duration of Building Rights Title (HGB) grants in the upcoming Industrial Zone Bill. He proposed that legal certainty regarding land titles be granted directly, without a phased scheme.
This is necessary to enhance Indonesia’s investment competitiveness. Currently, the granting of rights certainty is done in stages: 30 years, then an extension of 20 years, and a renewal of 30 years.
“When compared to other countries, especially our competitors like Vietnam and Thailand, they can directly grant [rights] for 80 years,” he concluded.