IAW Urges Central Government to Support Tanjungpinang in Regulating Stalled Building Rights

Indonesian Audit Watch (IAW) Founder Secretary, Iskandar Sitorus (Spc)

JAKARTA - Land reform is not just slogans; it must be put into practice. Neglecting land with economic value is a mistake.

Iskandar Sitorus, Founding Secretary of Indonesian Audit Watch (IAW), noted that in the 1980s, during the New Order era, 1,100 hectares of land in downtown Tanjungpinang were granted as HGB (land use rights) to four corporations: PT Bina Raya Mandiri, PT Tanjungpinang Lestari, PT Bintang Pratama, and PT Tirta Kencana.

However, the land was left vacant or used only symbolically, despite its significant commercial value.

In fact, since the HGB was granted, there has been no audit or enforcement, and the rights were ultimately forfeited.

Iskandar's statement was confirmed by Mayor Lis Darmansyah. On May 25, 2025, Lis issued a decree rejecting the extension of the HGB for the four companies.

"This is good and also a slap in the face from the Mayor to corporations. From the reform era until now, the city government has struggled to regulate the legal status of land that has long been unrevoked," Iskandar told reporters in Bogor on Wednesday, August 6.

According to the IAW, Mayor Lis has provided the best solution, one that favors both her people and her city.

According to Iskandar, Mayor Lis's policy of rejecting the decree extension is in line with UUPA No. 5/1960, Article 14, which states that HGB/HGU are void if they are inconsistent with the Spatial Planning (RTRW). Furthermore, PP No. 18/2021, Article 34, which requires proof of utilization before HGB is extended. Supreme Court Decision No. 123 PK/Pdt/2022, which confirms that the state can revoke non-productive HGB.

Furthermore, the findings of the Supreme Audit Agency (BPK) audit also add to the legitimacy of Mayor Lis' decision. BPK Audit Report No. 11/2023 revealed that 11 percent of land in Tanjungpinang is controlled by four large corporations, much of which is idle and in violation of the RTRW.

To that end, Iskandar encouraged the Tanjungpinang City Government to change the status of unproductive land to TORA (Land Objects of Agrarian Reform).

"Presidential Regulation 86/2018, Article 13, states that idle former HGB/HGU are categorized as TORA, and Ministerial Regulation of the ATR/BPN 20/2021, Article 15, appears to prioritize reform in the city. So, the Mayor's steps are appropriate," he emphasized.

The IAW hopes that Tanjungpinang will become a pilot project for agrarian transparency.

President Prabowo Subianto, it's time to take action by examining the courage of the Tanjungpinang City Government's decision.

"Go ahead and defend your decision, Mayor Lis Darmansyah, for the sake of your people and your region," Iskandar said in support.