State to Scrutinise Developers' Land Bank; Idle Land After Two Years at Risk of Seizure
JAKARTA, KOMPAS.com - The government will evaluate land held by developers that has not been utilised, even though rights to the land have been granted. The evaluation is conducted to ensure land use complies with the permits granted through a masterplan (development masterplan). The Head of the Land Acquisition and Procurement Division of the Land Bank Agency (BBT), San Yuan Sirait, said that land held by developers as a land bank may still be evaluated if not utilised within a certain period.
According to him, the evaluation covers land that has been granted rights, such as Hak Guna Usaha (HGU) or Hak Guna Bangunan (HGB), but has not been used in accordance with the purposes for which the rights were granted.
“Idle land is land that has previously been granted rights, for example HGU or HGB. If there has never been any land rights, it is not considered idle land,” said San Yuan at the BBT event in Jakarta, on Friday, 6 March 2026.
The evaluation may be conducted two years after the land rights have been issued. In the process, the government will check whether the land is being used in accordance with the permissions granted.
If the evaluation shows the land has not been utilised, the rights holder will first be asked to utilise the land in accordance with its designated use.
San Yuan added that not all land that has not been developed is automatically categorised as idle land.
The government also assesses whether the rights holder has a clear development plan for the land.
For example, if the developer has a masterplan that is being prepared, the land is not automatically designated as idle land.
“If they (the developers) have already presented a masterplan, for example a specific development plan, it is usually not pursued as idle land,” he said.
However, if after the evaluation it is found that the land is not being utilised and does not have a clear development plan, the land may be subject to enforcement under idle land regulations in force.