Governance and Legal Status of State Land Managed by State-Owned Enterprises

This study examines the legal status and management authority of state land administered by state-owned enterprises (SOEs) through a case study of the Ex-Beheersterrein land controlled by PT Bukit Asam Tbk. Combining a normative legal review of statutory instruments with empirical interview data from relevant stakeholders, the research clarifies the application of State Control Rights under the Basic Agrarian Law (UUPA) to land administered by SOEs. Findings indicate that: (1) state land is land without private encumbrance and remains under direct state control pursuant to the UUPA; (2) management authority over state land belongs to the government, exercised through laws and regulations to ensure use for the greatest public benefit; (3) SOEs may be granted legitimate land rights to control and utilize state land, but such grants do not confer ownership; and (4) when SOE-held land rights expire without lawful extension, the land reverts to state land status even if physical control by the SOE persists. The study highlights legal ambiguities in practice and recommends clearer regulatory mechanisms and administrative oversight to align SOE land use with public-interest obligations. The findings contribute a doctrinally grounded and practically applicable basis for regulators, auditors, and SOE managers to enhance legal certainty, accountability, and governance quality in managing state land within SOEs.