- As mandated under Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Apartment Units and Land Registrations ("Regulation 18/2021"), the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency ("Minister") is in the process of preparing a Draft Bill on Land Utilization Tariffs for Management Rights ("Draft Bill"). The Draft Bill will stipulate that holders of land management rights ("Holders") can use and exploit land management rights, either partially or in their entirety, for their own use or in collaboration with other parties based on certain tariffs.
- Utilization in collaboration with other parties encompasses: 1) Cultivation rights; 2) Building use rights; or 3) Use rights. The types of tariffs that will be charged to other parties who utilize management rights comprise: 1) Tariffs for the granting of rights; 2) Tariffs for the maintaining of land registration data; and/or 3) Other tariffs, as determined by Holders in accordance with the relevant management rights land utilization plans.
- The Draft Bill also stipulates that Holders are obliged to provide tariff incentives in certain cases, including: 1) The land in question will be utilized by financially disadvantaged persons; 2) In line with nationally strategic programs; 3) In order to settle land disputes and conflicts, and so forth. Furthermore, agreed tariff amounts must include land use agreements between the relevant Holders and other parties.
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