Legal perspectives on foreign land ownership: Balancing investment, equity, and sovereignty

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Abstract

This study seeks to analyze the distinctions in land ownership arrangements for foreigners in Indonesia and Thailand, while also examining the correlation between land ownership restrictions and the principles of equity and human rights. Both qualitative and quantitative data were utilized. Darin-Drabkin (2013) explains that the concept of land ownership is closely linked to the social, economic, and political structures, in addition to the developmental phase of a country. The analysis indicates that Thailand offers foreigners the chance to acquire ownership rights, contingent upon making a specified investment. Thailand imposes restrictions on foreign ownership of agricultural land. This stands in contrast to Indonesia, where foreign investment in agriculture is permitted. This policy guarantees that land remains accessible for underprivileged communities, thereby preventing external control. This aligns with United Nations Resolution No. 1803 (XVII) concerning State Sovereignty Over Natural Resources and the International Convention on Economic, Social, and Cultural Rights, which empowers developing countries to prioritize their citizens in resource ownership, including land. The researchers suggest that, in formulating land policies, the government should prioritize the needs of citizens in accordance with the principle of nationality and implement systematic measures to prevent the monopolization of land ownership by foreign legal entities.

Keywords: Ownership, Land, Foreigners, Indonesia, Thailand

Authors’ individual contribution: Conceptualization — M.A.M.; K.C.S.W.; and A.Y.S.; Methodology — M.A.M. and K.C.S.W.; Data Curation — S.C.C. and A.N.; Formal Analysis — M.A.M., K.C.S.W., and A.Y.S.; Resources — M.A.M., K.C.S.W., A.Y.S., and S.C.C.; Writing — Original Draft — M.A.M., K.C.S.W., A.Y.S., and A.N.; Writing — Review & Editing — M.A.M., K.C.S.W., A.Y.S., S.C.C., and A.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F21, K11, O19, P14, Q15

Received: 02.10.2024
Revised: 24.02.2025; 03.03.2025; 31.10.2025
Accepted: 05.11.2025
Published online: 07.11.2025

How to cite this paper: Mahfud, K. A., Wibawa, K. C. S., Sulistyawan, A. Y., Chin, S. C., & Natalis, A. (2025). Legal perspectives on foreign land ownership: Balancing investment, equity, and sovereignty [Special issue]. Corporate Law & Governance Review, 7(3), 252–262. https://doi.org/10.22495/clgrv7i3sip10