Perception of the Principle of Nationality

Oct 13, 2025 by windailys.com 78 views

Comparison of Rules Regarding the Right to Use Foreign Citizens in Indonesia between PP 41/1996 and PP 103/2015

Introduction

In the era of globalization, many countries, including Indonesia, have opened their doors to foreign investment to accelerate economic development. This policy has led to the enactment of Government Regulation (PP) No. 41 of 1996, which was later updated with PP No. 103 of 2015, known as a foreign residential PP. Although the main goal is to attract foreign investors, this policy has drawn criticism for being less supportive of national interests and tending to sell Indonesian land to foreigners in the interests of investment.

Background

The policy of attracting foreign investment in Indonesia has been ongoing for several decades. In 1996, the government enacted PP No. 41, which allowed foreigners to own land in Indonesia for a certain period of time. However, this regulation has been criticized for being too lenient and not providing sufficient protection for national interests. In response to these criticisms, the government enacted PP No. 103 of 2015, which aims to provide a more balanced approach to foreign investment.

Methodology

This study uses a normative approach, which relies on the analysis of laws and regulations, history, and comparison. The data collected for this study comes from primary, secondary, and non-legal sources that are relevant to the issues discussed. The study aims to analyze land ownership by foreigners after the enactment of PP 41/1996 and PP 103/2015, taking into account the perspective of national rights.

Results

The results of this study show two main findings:

Nationality Principle

The adoption of the nationality principle provides an opportunity for foreigners to control land rights through the right to use with a certain period of time. However, PP Rights (HGU), Building Rights (HGB), and Use Rights (HP) in PP 41/1996 together with Foreign Residential PP 2015 can create disharmony in its application. This is because the two PPs provide a different path for land ownership by foreigners, which has the potential to cause conflict between national interests and the interests of foreign investors.

The Nationality Principle in PP 41/1996

In PP 41/1996, the nationality principle is defined as the right of foreigners to use land in Indonesia for a certain period of time. This principle is based on the idea that foreigners have the right to use land in Indonesia for the purpose of investment, trade, and other economic activities. However, this principle has been criticized for being too broad and not providing sufficient protection for national interests.

The Nationality Principle in PP 103/2015

In PP 103/2015, the nationality principle is defined as the right of foreigners to use land in Indonesia for a certain period of time, subject to certain conditions. This principle is based on the idea that foreigners have the right to use land in Indonesia for the purpose of investment, trade, and other economic activities, but only if they meet certain conditions, such as obtaining a permit from the government.

Perception of the Principle of Nationality

In the context of PP HGU, HGB, and HP, the definition of the principle of nationality can cause differences in perception among legal practitioners and the general public. The time period of use rights set for 80 years, although it looks beneficial for investors, can indirectly conflict with the principle of nationality. There is a concern that this long period of time can cause uncertainty and potential for more dominant land control by foreigners.

The Perception of the Principle of Nationality in PP 41/1996

In PP 41/1996, the principle of nationality is defined as the right of foreigners to use land in Indonesia for a certain period of time. However, this principle has been criticized for being too broad and not providing sufficient protection for national interests. The time period of use rights set for 80 years has been seen as too long and can cause uncertainty and potential for more dominant land control by foreigners.

The Perception of the Principle of Nationality in PP 103/2015

In PP 103/2015, the principle of nationality is defined as the right of foreigners to use land in Indonesia for a certain period of time, subject to certain conditions. However, this principle has been criticized for being too narrow and not providing sufficient protection for national interests. The time period of use rights set for 80 years has been seen as too long and can cause uncertainty and potential for more dominant land control by foreigners.

Conclusion

This analysis shows that although these two regulations have the same goal, there are a number of discrepancies that need to be examined further. Researchers recommend the need for in-depth study and revision of this regulation to be in line with the principles of nationalism and soil sovereignty. This research provides important insights for policy makers and the community to understand the implications of the regulations regarding the right to use for foreign citizens in Indonesia, as well as their impact on national interests and sustainable economic development.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should conduct an in-depth study of the regulations regarding the right to use for foreign citizens in Indonesia.
The government should revise the regulations to be in line with the principles of nationalism and soil sovereignty.
The government should provide more protection for national interests and ensure that the rights of foreigners are balanced with the rights of Indonesian citizens.
The government should establish a clear and transparent process for granting permits to foreigners to use land in Indonesia.

Limitations of the Study

This study has several limitations. Firstly, the study only analyzed the regulations regarding the right to use for foreign citizens in Indonesia and did not consider other factors that may affect land ownership by foreigners. Secondly, the study only considered the perspective of national rights and did not consider the perspective of foreign investors. Finally, the study only analyzed the regulations in the context of PP 41/1996 and PP 103/2015 and did not consider other regulations that may affect land ownership by foreigners.

Future Research Directions

This study provides a number of future research directions. Firstly, further research is needed to analyze the impact of the regulations regarding the right to use for foreign citizens in Indonesia on national interests and sustainable economic development. Secondly, further research is needed to analyze the impact of the regulations on the rights of Indonesian citizens and the rights of foreign investors. Finally, further research is needed to analyze the effectiveness of the regulations in achieving their goals and to identify areas for improvement.
Frequently Asked Questions (FAQs) about the Comparison of Rules Regarding the Right to Use Foreign Citizens in Indonesia between PP 41/1996 and PP 103/2015

Q: What is the main difference between PP 41/1996 and PP 103/2015?

A: The main difference between PP 41/1996 and PP 103/2015 is the approach to foreign investment in Indonesia. PP 41/1996 was more lenient and allowed foreigners to own land in Indonesia for a certain period of time, while PP 103/2015 is more balanced and requires foreigners to meet certain conditions before they can use land in Indonesia.

Q: What is the nationality principle in the context of PP 41/1996 and PP 103/2015?

A: The nationality principle in the context of PP 41/1996 and PP 103/2015 refers to the right of foreigners to use land in Indonesia for a certain period of time. However, the definition of this principle in the two regulations is different, which can cause differences in perception among legal practitioners and the general public.

Q: What is the time period of use rights set for in PP 41/1996 and PP 103/2015?

A: The time period of use rights set for in PP 41/1996 is 80 years, while in PP 103/2015, it is also 80 years, but subject to certain conditions.

Q: What are the implications of the regulations regarding the right to use for foreign citizens in Indonesia?

A: The implications of the regulations regarding the right to use for foreign citizens in Indonesia are that they can affect national interests and sustainable economic development. The regulations can also impact the rights of Indonesian citizens and the rights of foreign investors.

Q: What are the recommendations for policy makers and the community based on the findings of this study?

A: The recommendations for policy makers and the community based on the findings of this study are that the government should conduct an in-depth study of the regulations regarding the right to use for foreign citizens in Indonesia, revise the regulations to be in line with the principles of nationalism and soil sovereignty, provide more protection for national interests, and establish a clear and transparent process for granting permits to foreigners to use land in Indonesia.

Q: What are the limitations of this study?

A: The limitations of this study are that it only analyzed the regulations regarding the right to use for foreign citizens in Indonesia and did not consider other factors that may affect land ownership by foreigners, it only considered the perspective of national rights and did not consider the perspective of foreign investors, and it only analyzed the regulations in the context of PP 41/1996 and PP 103/2015 and did not consider other regulations that may affect land ownership by foreigners.

Q: What are the future research directions based on the findings of this study?

A: The future research directions based on the findings of this study are to analyze the impact of the regulations regarding the right to use for foreign citizens in Indonesia on national interests and sustainable economic development, to analyze the impact of the regulations on the rights of Indonesian citizens and the rights of foreign investors, and to analyze the effectiveness of the regulations in achieving their goals and to identify areas for improvement.

Q: What are the implications of this study for policy makers and the community?

A: The implications of this study for policy makers and the community are that it provides important insights into the implications of the regulations regarding the right to use for foreign citizens in Indonesia, and it highlights the need for policy makers to consider the impact of these regulations on national interests and sustainable economic development.

Q: What are the recommendations for future research based on the findings of this study?

A: The recommendations for future research based on the findings of this study are to conduct further research on the impact of the regulations regarding the right to use for foreign citizens in Indonesia on national interests and sustainable economic development, to analyze the impact of the regulations on the rights of Indonesian citizens and the rights of foreign investors, and to identify areas for improvement in the regulations.