Residents of Sei Nayon Secure Land Rights After Ombudsman’s Intervention

In a landmark decision, the Indonesian Ombudsman has successfully mediated a long-standing agrarian conflict in Sei Nayon, Batam, leading to the cancellation of land allocations to four companies by the Batam Indonesia Free Zone Authority (BP Batam). This resolution brings relief to approximately 1,500 residents who have occupied the land since 1995.

Since 1995, approximately 1,500 individuals have settled in Sei Nayon, constructing permanent residences and essential public facilities such as mosques, prayer rooms, and health centers. These developments were funded by the Batam City Government, highlighting the community’s deep-rooted presence in the area.

Despite the residents’ long-standing occupation, BP Batam allocated the disputed land to five companies between 2003 and 2006. Notably, PT. Citra Mitra Graha obtained a Building Use Rights (HGB) certificate and commenced development, while the other four companies failed to utilize their allocated land, leading to allegations of breach of contract.

The Ombudsman of the Republic of Indonesia conducted an investigation following complaints from residents. The findings revealed maladministration by BP Batam, particularly in failing to evaluate the performance of the companies allocated land. This oversight allowed companies that did not fulfill their obligations to retain land rights, exacerbating the conflict.

Recommendations and BP Batam’s Response

The Ombudsman recommended that BP Batam revoke the land allocations of the four companies that had not developed their plots and consider providing alternative land if available. For PT. Citra Mitra Graha, which had begun development, the Ombudsman suggested mediation between the company and residents to negotiate compensation. BP Batam has acted on these recommendations by canceling the allocations of the non-compliant companies.

Despite the progress, mediation between PT. Citra Mitra Graha and the residents has yet to yield a resolution. The company holds legal land rights and has initiated development, while residents seek recognition of their long-standing occupation. The Ombudsman continues to facilitate discussions to reach an amicable solution.

The resolution of the Sei Nayon land dispute underscores the effectiveness of Indonesia’s legal and administrative frameworks in addressing complex agrarian conflicts. For Singaporeans and international investors, this case highlights the importance of due diligence and the need to engage with local communities and authorities to navigate land ownership complexities in Indonesia. It also reflects Indonesia’s commitment to upholding the rights of its citizens while balancing economic development interests.

Sources: Batam News (2025), Ombudsman RI (2025)

Keywords: Ombudsman, BP Batam, Land Allocation, Maladministration, Sei Nayon