The Role and Functions of the Balai Harta Peninggalan (BHP)
Authors
The Estate Office or (Balai Harta Peninggalan or “BHP”) is a government institution in Indonesia tasked with safeguarding and administering the rights and assets of individuals and legal entities who, for legal or factual reasons, are unable to manage their own affairs. Although its role is not widely understood by the public, the BHP performs a vital function in upholding legal certainty, protecting vulnerable parties, and ensuring the orderly administration of estates, guardianships, and bankruptcies. Through these roles, the BHP helps maintain public trust, fairness, and transparency within Indonesia’s civil and inheritance law framework.
Under by Minister of Law and Human Rights Regulation No. 7 of 2021 regarding The Organization and Governance of the Estate Office (BHP) (“MOLHR Reg 7/2021”) and other relevant laws and regulations, the BHP’s has wide ranging powers including guardianship and custodianship, administering inheritances and handling bankruptcies.
General Overview Essentially, the primary duty of the BHP is to “represent and manage” the interests of individuals and/or legal entities who, by virtue of law or a court decision, are unable to exercise their own rights and obligations in accordance with prevailing laws and regulations. In carrying out its principal duties and functions, the BHP is guided by Articles 2 of the MOLHR Reg 7/2021, which provides that: “BHP has the duty to represent and administer the interests of legal subjects in the context of executing court judgments and/or court determinations, or in the interest of law, particularly in relation to estates, in accordance with statutory regulations”. In practice, BHP performs the following functions:
Custodianship (Perwalian - Voogdij)
Custodianship pertains to the supervision of minors who no longer or not under the authority of their parents, as well as the administration of the minors’ assets. Such circumstances generally arise following the dissolution of marriage, whether due to death or court decree, which carries legal implications for the spouses, their children, and jointly held property, particularly in relation to underage children. Under Indonesian law, custodianship is categorized into three types: (i) custodianship by operation of law, (ii) custodianship by court appointment, and (iii) testamentary custodianship. In this respect, BHP serves two roles:
- Interim Guardian, responsible for administering and supervising the child until a permanent guardian is formally appointed by the court; and
- Supervisory Guardian (Toeziende Voogd), whereby BHP is mandated to act as the supervisory guardian in all guardianships established in Indonesia.
Guardianship (Pengampuan - Curatele)
Guardianship refers to the legal incapacity of a person (curandus), who due to personal conditions, is deemed incapable of independently managing legal affairs. By court decree, such person is placed under guardianship and represented by a legal guardian (curator). Under Articles 433 to 462 of the Indonesian Civil Code (Burgerlijk Wetboek), grounds for guardianship include mental disability, insanity, habitual drunkenness, or prodigality. In such cases, an adult is legally equated to a minor due to incapacity to act in legal transactions.
For a more comprehensive discussion on guardianship, please refer to the ARMA Private Wealth Series Update available at: [https://www.arma-law.com/news-event/newsflash/private-wealth-series-guardianship-pengampuan-under-indonesian-law]
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Property and Interests of Persons Declared Absent (Afwezigheid)
Absence (Afwezigheid) refers to a situation in which a person has left their place or residence without any known whereabouts, whether within or outside Indonesian territory, and there is no evidence of death nor any appointed legal representative. In such cases, management of the absent person’s asset requires court determination. BHP is designated administer and safeguard such property, which typically includes immovable assets such as, and may subsequently facilitate their transfer or sale to occupants or interested parties in accordance with applicable legal procedures through BHP’s adminstration.
Unclaimed Estates (Onbeheerde Nalatenschap)
Pursuant to Articles 1126–1128 of the Civil Code, an unclaimed estate arises where an inheritance is opened but no heirs come forward to claim it, or known heirs formally renounce their rights to the inheritance. In such circumstances, the estate is deemed “unmanaged.” The procedures for administering unclaimed estates generally follows that applicable to the administration of property belonging to absent persons, except that unclaimed estates are based on a death certificate (Surat Keterangan Kematian) rather than a court determination of absence.
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Registration and Opening of Wills (Testament)
A will (testament) is a legal instrument through which a person declares their intentions concerning the distrbution of their assets upon death, which may be revoked during their lifetime. Wills may take the form of a handwritten (olographis) will, a notarial deed, or a sealed/private deed, in accordance with the Civil Code.
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Issuance of Certificate of Inheritance (Surat Keterangan Hak Waris – “SKHW”)
An SKHW is a formal legal document issued by BHP certifying the decedent’s identity, the rightful heirs, the composition of the estate, and the respective inheritance shares. This document serves as official evidence, for various administrative and legal purposes particularly for third parties such as the National Land Agency (Badan Pertanahan Nasional – “BPN”), for purposes of land measurement and registration of land transfers based on inheritance. Where heirs are underage, BHP requires the applicant to first obtain a court ruling on guardianship appointment, guardian’s oath, and inventory of inherited property.
Bankruptcy and Insolvency Administration
Bankruptcy constitutes a general seizure of all assets of the insolvent debtor, to be administered by a curator under the supervision of a supervisory judge, in accordance with the Bankruptcy Law. Bankruptcy may be declared by a Commercial Court upon petition by the debtor or by one or more creditors. In administering bankrupt estates, the law authorizes not only BHP but also private curators registered with the Ministry of Law and Human Rights.
Management of Third-Party Funds.
BHP is also authorized to administer third-party funds, including:
- Funds received via transfer or in cash where the originator or recipient is unknown; and
- Old-age security funds (Jaminan Hari Tua) transferred from BPJS, where the worker has neither heirs nor a will.
In conclusion, the BHP serves as a cornerstone institution within Indonesia’s civil law framework, ensuring that the interests of absent persons, minors, incapacitated individuals, and insolvent debtors are effectively represented and lawfully managed. Its multifaceted functions underscore the state’s responsibility to maintain fairness, protect vulnerable legal subjects, and provide certainty in the administration of assets. By fulfilling these duties, the BHP not only safeguards individual rights but also strengthens public trust in the integrity of Indonesia’s legal system.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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