Key insights and market outlook
A land dispute between PT Hadji Kalla, owned by former Vice President Jusuf Kalla (JK), and PT Gowa Makassar Tourism Development (GMTD), part of Lippo Group, is escalating in Makassar, South Sulawesi. The dispute involves conflicting land certificates with PT Hadji Kalla holding Building Use Rights (HGB) since 1996, while GMTD claims Management Rights (HPL) from local government policies in the 1990s 1
A significant land dispute has emerged in Makassar, South Sulawesi, involving PT Hadji Kalla, owned by former Vice President Jusuf Kalla (JK), and PT Gowa Makassar Tourism Development (GMTD), a subsidiary of Lippo Group. The conflict centers on conflicting land certificates and management rights 1
PT Hadji Kalla possesses Building Use Rights (HGB) certificates issued by the National Land Agency (BPN) since 1996, which remain valid until 2036. Conversely, GMTD asserts its claim through Management Rights (HPL) granted by the local governments of Gowa and Makassar in the 1990s. This dual claim has created a complex legal situation that requires thorough examination 1
The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) has initiated a comprehensive legal due diligence process to determine the rightful land ownership. Minister Nusron Wahid emphasized that this investigation aims to identify which party has the most legitimate claim by examining the legal processes followed by both companies. The investigation is crucial in resolving the dispute and preventing similar cases in the future 1
The dispute has drawn attention from the House of Representatives (DPR), with members expressing concerns about the government's handling of the situation. Commission II DPR RI member Muhammad Khozin criticized Minister Nusron for being too candid about the state's potential negligence in public. Khozin stressed that while he supports the ATR/BPN's efforts to rectify the issue, such matters should be handled discreetly to avoid public scrutiny of governmental lapses 2
This case highlights significant issues within Indonesia's land management system, including potential administrative failures and conflicting land rights. The outcome of the ATR/BPN's investigation will be critical in setting precedents for similar disputes. Moreover, the resolution of this case could lead to improvements in land administration practices and prevent future disputes.
Land Dispute Escalation
Legal Due Diligence Initiation