Small Islands of Indonesia Cannot Be Owned, But Can Be Managed by Investors

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Mengenal Amal Clooney, Pengacara Cerdas Pasangan George Clooney", "What Are The Competences of The Religious Courts To Adjudicates In Sharia Economic Cases?", "Understanding 5 Steps Foreign Direct Investment In Indonesia" you may read also "Does Indonesia Implementing Citizenship By Investment?" and on this occasion we will discuss about 'Small Islands of Indonesia Cannot Be Owned, But Can Be Managed by Investors'.

Splashy Sales of Small Islands in Indonesia

The news about the plan to sell 100 islands in the Widi Archipelago, North Maluku has been in the spotlight. Reportedly, hundreds of island clusters which are believed to have an area of ​​10 thousand hectares will be offered through an auction system in New York, United States (US).[1]

The Coordinating Minister for Maritime Affairs and Investment, through his spokesman, emphasized that the government already has laws and regulations which state that small islands cannot be fully owned by any party.[2] "Small islands can only be managed by private individuals or certain individuals with certain maximum area limits," said Jodi in an official statement, quoted on Sunday (4/12/2022).[3]

The author thinks this news is just exaggerating, because when investors are interested in a small island in Indonesia, in reality they have to go through the stages of investment law. News like this is presented in an unbalanced way without raising the legal aspects surrounding it. 

Legal Rules Concerning the Management of Small Islands in Indonesia

The Coordinating Ministry for Maritime Affairs and Investment itself has explored the excitement about the plan to sell this island. Jodi explained that so far the Widi Islands have been managed by a private company, PT. Leadership Islands Indonesia (LII). Jodi ensured that LII already had management permits in accordance with the law with the local provincial government. Jodi also explained that the management permit was given a long time ago, but reportedly until now there has been no realization of its construction by PT LII.[4]

On the other hand, Jodi stated that if a small island management permit has been obtained by a company or national legal subject, then the investment cooperation process with foreign parties must also be carried out in accordance with statutory provisions. He emphasized that no party can own islands in Indonesia. However, those who are interested can ask for management permission.[5]

"Parties who are interested in managing, not owning, small island areas must obtain permission from the government. If there is a violation of statutory provisions, then there can be sanctions that can be imposed," said Jodi. In addition, Jodi also emphasized that Indonesia's sovereignty over all islands within the Indonesian archipelagic baselines need not be doubted and has been recognized by the international community.[6] And if you are interested in investing your money by managing small islands in Indonesia, contact us then, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Heboh 100 Pulau Mau Dijual ke Investor, Luhut Angkat Bicara!", //finance.detik.com., Diakses pada tanggal 30 Desember 2022, Link: https://finance.detik.com/properti/d-6441827/heboh-100-pulau-mau-dijual-ke-investor-luhut-angkat-bicara

2. Ibid.

3. Ibid.

4. Ibid.

5. Ibid.

6. Ibid.