JL. SRIKANDI NO.2 CAKRA MATARAM, NTB-INDONESIA
MONDAY - FRIDAY 08:00-17:00
+(62)370-637-299
+(62) 818-0200-7676

News & Articles

  • LILO CONSULTANTS

Decentralization of Land Authority under Ministerial Regulation ATR/BPN No. 9 of 2025:

Bureaucratic Efficiency and Supervisory Challenges.


The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Regulation No. 9 of 2025 concerning Delegation of Authority for the Determination of Land Rights and Land Registration Activities marks a significant milestone in Indonesia’s bureaucratic reform within the land administration sector. This regulation serves as a refinement of Ministerial Regulation No. 5 of 2025, with a primary orientation toward accelerating public services, strengthening legal certainty, and promoting administrative efficiency in land governance.

Within the framework of national bureaucratic reform and investment acceleration, the government has recognized that the centralization of land authority at the national level has often created bottlenecks for public services and delayed the realization of development projects, particularly in the regions. Hence, the delegation of authority is regarded as a strategic measure to establish a land administration system that is more effective, efficient, and responsive to the dynamic needs of society and the business community.

Normatively, the authority of the Minister of Agrarian Affairs and Spatial Planning/National Land Agency to grant land rights derives from Law No. 5 of 1960 on the Basic Agrarian Law (UUPA), particularly Articles 2 and 4, which stipulate that the implementation of land rights shall be carried out by the state in accordance with national interests. Within the context of modern public administration, such inherent authority may be delegated to subordinate officials, provided that it adheres to the principles of efficiency, effectiveness, and accountability.

Ministerial Regulation ATR/BPN No. 9 of 2025 institutionalizes these principles by authorizing the Minister to delegate certain powers to officials within the Directorate General, the Regional Land Office (Kantor Wilayah), and the District Land Office (Kantor Pertanahan). This delegation is selective and conditional, taking into account geographical factors, land value and area, potential disputes, and the administrative capacity of regional officials. Accordingly, the delegation does not imply an absolute transfer of power but remains under the Minister’s supervision, who retains the prerogative to withdraw the delegated authority in the event of deviation or ineffectiveness.

The scope of delegation under this regulation encompasses two principal categories: the determination of land rights and land registration activities. The determination of land rights includes the granting of new rights over state land, the renewal of expired rights, and the issuance of technical and juridical recommendations prior to the final decision by the authorized official. Meanwhile, land registration activities cover technical administrative processes, ranging from surveying, measurement, and mapping to the signing of survey certificates, land books, titles, and approval of service results. Through this mechanism, the legalization process of land rights can be completed more efficiently at the regional level without requiring direct ministerial approval, provided that it remains within the delegated scope.

The distribution of authority in this regulation is designed based on hierarchical and risk-based principles. The Minister retains strategic authority over land areas exceeding ten million square meters, high-value land, government assets, special economic zones, and land with national interest implications. The Directorate General for Land Rights and Registration handles large-scale inter-provincial rights, while the Head of the Regional Office (Kantor Wilayah) is responsible for medium-scale projects within the province, including regional strategic projects. The Head of the District Land Office (Kantor Pertanahan), as the front-line public service entity, possesses the authority to determine land rights on small to medium-scale land, particularly for individuals and local legal entities. Special areas such as Batam and the Capital City of Nusantara (IKN) receive extended delegated authority to support the acceleration of national strategic development. This structured hierarchy demonstrates a risk-based authority system, wherein the larger and more valuable the land, the higher the official level required to authorize the decision, maintaining a balance between administrative efficiency and legal prudence.

From both legal and administrative perspectives, this delegation policy carries several positive implications. First, it materializes the decentralization of public services in the land sector, enabling communities and businesses to access faster services without depending on central approval. Second, the explicit demarcation of authority among official levels fosters legal certainty and transparency, reducing the risk of overlapping decisions and ownership conflicts. Third, this policy supports investment acceleration in property, industry, and tourism sectors, as medium-scale land rights can now be processed at the regional level. However, the policy’s effectiveness also faces practical challenges. Delegating authority to regional offices may increase the risk of abuse of power, particularly in the absence of strong supervision and adequate capacity building. Furthermore, limitations in human resources, digital infrastructure, and land information systems in some local offices may hinder the expected administrative efficiency.

To address potential misuse, Article 21 of Ministerial Regulation ATR/BPN No. 9 of 2025 explicitly prohibits manipulative practices such as artificial land parcel division intended to circumvent authority limits, abuse of delegated power for personal gain, and any conduct violating the principles of civil service integrity. Violations are subject to disciplinary sanctions in accordance with Government Regulation No. 94 of 2021 on Civil Servant Discipline. This provision underscores that the delegation of authority is not solely aimed at administrative acceleration but also at reinforcing public accountability in land administration. The Minister maintains the prerogative to revoke delegated powers if irregularities, misconduct, or ineffectiveness are identified during implementation.

From the standpoint of administrative law, this regulation exemplifies a conditional delegation of authority — a delegation accompanied by clear limitations, requirements, and supervisory mechanisms. Delegation in this sense does not imply the transfer of responsibility but rather a shared administrative responsibility under continuous vertical oversight. Ideally, the implementation of such delegated authority should be supported by electronic reporting systems, periodic audits, and comprehensive digitalization of land services, including measurement, certification, and coordinate-based mapping. Strengthening the capacity and integrity of regional officers will be a key determinant of the policy’s success. Without adequate oversight and digital infrastructure, decentralization may lead to fragmented administrative practices and inconsistent decisions among regions.

In conclusion, Ministerial Regulation ATR/BPN No. 9 of 2025 represents a progressive legal instrument toward establishing a modern, efficient, and accountable land administration system. The regulation shifts Indonesia’s public service paradigm from a centralized bureaucracy toward a controlled, risk-based decentralization model, without compromising legal certainty. Its success will depend on consistent supervision from the central government, the nationwide implementation of digital land information systems, and the integrity of officials at all administrative levels. When implemented with discipline and consistency, this regulation can serve as a strong legal foundation for a transparent, equitable, and sustainable land administration system capable of supporting Indonesia’s long-term economic development.

Welcome to Lombok
Where your future investment begins.

LILO CONSULTANTS – From Property to PMA, We’ve Got You Covered

✴️ Translate to Bahasa Indonesia