Investors cannot extend their rights over land in advance all at once

On 25 March 2008, as the result of judicial review, the Constitutional Court of RI decided to amend Article 22 paragraph (1), (2) and (4). It means that the investors cannot extend their rights over land in advance all at once because it is contrary to Article 33 paragraph (3) of the Constitutional Law of 1945. The extension of rights over land for investor will be subject to Land Law No. 5 of 1960.Thus, the prevailing wording of Article 22 paragraph (1), (2) and (4) as amended by the Constitutional Court of RI are:(1) The facilitated services and/or licensing of the rights over land can be granted and extended and renewed upon the request of the investor.(2) The rights over land can be granted and extended for capital investment with the following requirements:a. the long term capital investment and related with the competitive restructuring of Indonesian economics structure;b. capital investment with high risk related with the return of capital in long period based on type of capital investment activities;c. capital investment which does not require big area;d. capital investment which use the right over state land; ande. capital investment which does not disturb the principle of people's justice and does not harm public interest.(4) The grant and extension of the rights over land which can be renewed may be terminated or annulled by the Government if capital investment activities abandons the land, harms the public interest, uses or cultivates the land other than in accordance with the aims and purposes of the grant of such rights over the land, and otherwise violates the provisions of laws and regulations on land.