Indonesia's lands can only be owned by an Indonesian Citizens ( WNI) , this is due to the nationality principle adopted by the UUPA , Land occupation by expatriate or foreign nationality is used for housing and business spot in context of foreign investment, for residential in which the expatriates live they may build building on right to use and rights to lease for building as well as over the land they occupied based on agreement with the land rights holder, whereas land for business the expatriates previously need to build legal entity based on applicable law in Indonesia and domicile in Indonesia namely in form of Limited Company (PT). With the closing of opportunity for the expatriates to have lands with status of right to own (HM) therefore the expatriates always strive to perform efforts to occupy the land with unlimited time period like the rights to own. These efforts often violate the applicable provision hence law smuggling often occurred.
Method used in this research is normative empiric legal research method namely a research which studying on the implementation and application of positive legal provision and contract factually in every particular legal events.
This study is aimed to ensure whether the lease agreement conducted by the expatriates is in conformity or not with the applicable law and regulation. Based on research and analysis result can be discovered that: first, lands occupy by the expatriates in District of Alor are scattered in strategic areas that have direct access to nautical tourism object Sea Park of Pantar Strait; second,Land lease agreement conducted by expatriates in Kepa Island was performed in 2 ways namely by private agreement and by authentic deed (notary�s deed). Lease agreement for resident conducted by expatriates in Kepa Island has covertly indication of transfer of right which has a potential in breaking provision as in Article 26 paragraph (2) UUPA. Third, Land utilization by the expatriates in Kepa Island is for residential and for business like homestay and diving. Land
utilization by the expatriates has been conformed, where as for business homestay has violating the law.

Key Words : Land Occupation, Land Use and Exparite