Jakarta, June 2024. Our firm has successfully defended our client, a multinational beverage manufacturing company, over its land rights, from a state administrative claim lodged by two land cultivators.
The Claimants claimed that their legal interests were harmed because they were unable to obtain a land certificate for their cultivated land that they had obtained since 1982 because the land office as Defendant had issued a certificate of right of management (hak pengelolaan – HPL) in 1982. The claim was then intervened by several parties having interest to the HPL, namely as holder of right to build (hak guna bangunan) over or originating from HPL, including our Client.
The panel of judges argued that there had been no compensation paid to the Claimants when the HPL was issued in 1982. In the final analysis, the judges then declared that the HPL was nullified. Moreover, the judges argued that since there is no overlap between the claimed land and the other lands held by the intervening parties, under Article 14 of Government Regulation No. 18 of 2021, it is regulated that when the HPL is nullified by the court’s decision, the land rights over the HPL can only be nullified when they are explicitly declared in the decision. This argument causes the land rights of our Client to be valid despite nullification of HPL.
Leks&Co is a recommended firm on commercial dispute resolution by Legal500, asialaw, and Benchmark Litigation.
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