LEGAL ANALYSIS OF OWNERSHIP OF A PLACE OF RESIDENCE BY FOREIGNERS DOMICILED IN INDONESIA, ON LAND WITH MANAGEMENT RIGHTS (HPL) CASE STUDY OF BATAM BUSINESS ENTITIES

Abstract

This study examines the legal framework, implementation, obstacles, and solutions concerning residential ownership by foreigners domiciled in Indonesia on land under the Management Right (Hak Management/HPL) of the Batam Indonesia Free Zone Authority (BP Batam). The research uses a normative-empirical legal design by combining statutory, conceptual, and case approaches with field data obtained through interviews with notaries/PPAT, BP Batam officials, and land-administration actors. The findings indicate that foreign residential ownership has a sufficient normative basis through the Basic Agrarian Law, the Job Creation regulatory framework, Government Regulation No. 18 of 2021, and implementing regulations. Foreigners cannot hold ownership rights over land; the legally available route is principally a Right of Use and, under relevant conditions, ownership of apartment units constructed on eligible land rights, including HPL land. In Batam, implementation requires BP Batam land allocation or approval and subsequent land registration, creating an additional administrative layer. The main problems are regulatory disharmony, institutional overlap, complex procedures, weak inter-agency integration, and risks of nominee arrangements. Harmonization, integrated digital services, clearer standard procedures, and stronger supervision are therefore required to improve legal certainty while maintaining the nationality principle in Indonesian land law.