Indonesian Political, Business & Finance News

Agrarian Reform Law: Government to Regulate Maximum Land Ownership Limits

| Source: CNBC Translated from Indonesian | Social Policy
Agrarian Reform Law: Government to Regulate Maximum Land Ownership Limits
Image: CNBC

The government is set to draft regulations regarding the minimum and maximum limits of land control and ownership. The formulation of this policy follows the ratification of the Agrarian Reform Regulation Bill into Law during the Plenary Session of the House of Representatives at the Nusantara Building, Parliament Complex, Senayan, Central Jakarta, on Tuesday (22/09/2026).

The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid, stated that these rules will be implemented through Government Regulations (PP) covering several critical aspects of land ownership.

“We are also committed to completing the legislation mandated by the Agrarian Reform Law, including these government regulations,” he said.

The following aspects will be regulated within the Government Regulation:

  1. Planning, implementation, monitoring, and evaluation of agrarian reform implementation.

  2. Procedures for determining priority locations for agrarian reform.

  3. Procedures for transferring the status of state-owned assets, regional-owned assets, or assets of State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD).

  4. Resolution of agrarian conflicts.

  5. Procedures for the registration, management, use, utilisation, and inheritance of joint ownership of rights.

  6. Arrangement, control, and limitation of land.

  7. Determination of the minimum and maximum limits of land control and ownership.

  8. Community participation.

Furthermore, according to Nusron, the government is committed to promptly finalising Presidential Regulations regarding:

  1. The agrarian reform roadmap.

  2. The formation, duties, functions, authority, and organisational structure of the agrarian reform implementing agency.

  3. The establishment of a supervisory board.

  4. Agrarian reform objects involving other agrarian resources.

  5. Written warnings, revocation, and the granting of rights to other parties.

Nusron stated that the government hopes that with a stronger legal foundation, smallholder farmers, tenant farmers, agricultural labourers, traditional fishermen, indigenous communities, as well as vulnerable and low-income groups, can more tangibly feel the presence of the state through the implementation of just agrarian reform.

“Agrarian reform does not stop at the rearrangement of land control and ownership. Agrarian reform must ensure that land and other agrarian resources become a source of life, a source of prosperity, and a pillar for the sustainable improvement of community living standards,” said Nusron.

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