Chief of IPB University’s Center for Agrarian Studies Affirms Island Sale and Purchase is Against the Law

Chief of the Center for Agrarian Studies of IPB University, Dr Bayu Eka Yulian, asserted that the practice of buying and selling islands is against the prevailing law in Indonesia. He made this statement in an online interview on Tuesday (6/25), responding to the rampant issue of island sales circulating on the internet.
“The buying and selling of islands, both online and in person, clearly violates the Basic Agrarian Law Number 5 of 1960. State land cannot be bought and sold, especially to foreigners who do not have property rights in Indonesia,” said Dr Bayu.
He explained that according to the law, citizens are only allowed to own a maximum of five hectares of land. If it exceeds this limit, it must be through a legal entity and with the status of Cultivation Rights Title (HGU), not property rights.
Therefore, individuals who sell the island directly are considered to have violated the law because the island is part of the state territory and is a state property right.
Dr Bayu added that if there are parties who want to run a business on an island, the government has provided a legal mechanism, namely through leasing or applying for a permit to the state. The process is accompanied by various requirements such as environmental documents such as environmental impact assessments (EIA), strategic studies, and conformity to regional spatial planning.
“The illegal sale of islands not only violates the law, but also threatens state sovereignty, creates the potential for agrarian conflict, and harms the national economy, especially if there are indigenous peoples’ rights in it,” he said.
He also emphasized the importance of the state having valid data and precision maps, including geotagging and the implementation of the one map policy. This is to maintain the integrity of the national territory, especially small and outer islands that are prone to being claimed by foreign parties.
In the context of investment, Dr Bayu reminded that foreign nationals are still not allowed to own land in Indonesia, although they can run businesses in accordance with applicable mechanisms and licenses.
Closing his statement, he urged the public not to panic over the issue of island sales, but to remain critical and ascertain the information circulating, including who the seller is and where the source is from. “We have been independent since August 17th, 1945. This territory belongs to the Indonesian people and cannot be traded just like that,” he concluded. (dh) (IAAS/KQA)