Legal Aspect on Use and Land Utilization of Outermost Small Islands in Indonesia for Foreign Investment Interests

Abstract

The regulation of the use and utilization of the outermost small islands in Indonesia has not been well ordered. The development of outermost small islands of inhabitant has not been fully adapted to the island's characteristics, namely the ecological conditions and the island's resources. The outermost small islands which are generally controlled by customary law or traditional community from generation to generation as inhabitant require recognition and determination of land rights by the Government. The Minister of Agrarian Affairs and Spatial Planning has established regulations on Land Arrangement in Coastal Areas and Small Islands, based on customary law of the structure of autonomous community/traditional community which was appointed as the basis of approach in arranging the granting of land rights on small islands. Land rights may be granted under customary law on the Tenure and Ownership of Small Islands by customary law/Traditional community, in the form of Communal Right and/or confirmed as Hak ulayat. Land rights (Communal Right or Hak Ulayat) are the basis for the authority of autonomous community/traditional community and local community as islander to use and utilize the island’s land and its surrounding waters. The land rights of outermost small islands can be undertaken as the basis for establishing a business that can be registered, and can be contracted with investors in the use and utilization of their land rights with due regard to the carrying capacity of the environment and the sustainability of its natural resources.

Keywords: characteristics, land rights of islanders, foreign investment.