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We report a lateral heterojunction diode consisting of Platinum/Barium Titanate/Al0.58Ga0.42N with significantly improved electric breakdown properties. By using a high permittivity oxide, BaTiO3, as a anode-dielectric material, electric field peaking between anode and cathode was decreased and an average breakdown electric field above 8 MV/cm was observed for diodes with anode-cathode distance less than 0.2 µm. Control Schottky diodes consisting of a Platinum/Al0.58Ga0.42N junction had an average breakdown electric field ~4 MV/cm for similar dimension devices as the heterojunction diodes. The utilization of a high permittivity material can more efficiently make use of the available high breakdown electric fields in ultra-wide energy bandgap materials by managing electric field. This represents an important step towards the realization of highly miniaturized lateral devices with significantly improved electric breakdown characteristics.