Indonesian Political, Business & Finance News

Land Bank Opens Opportunity for Agrarian Reform Share Above 30 Percent

| | Source: KOMPAS Translated from Indonesian | Regulation
Land Bank Opens Opportunity for Agrarian Reform Share Above 30 Percent
Image: KOMPAS

JAKARTA, KOMPAS.com - The Land Bank Agency opened the possibility of land allocation for agrarian reform to be larger than the current minimum 30 percent. This was stated by Perdananto Aribowo, Deputy for Strategic Planning and Land Acquisition at the Land Bank Agency, after attending a Public Hearing (RDP) with Commission II of the House of Representatives (DPR RI) at the Parliament Complex, Senayan, Central Jakarta, on Monday, 18 May 2026. The statement followed discussions in the RDP which touched on optimising land utilisation by the Land Bank Agency, which was deemed not yet optimal.

Aribowo said there is potential new land that can be fully utilised for the purposes of agrarian reform. This, he said, refers to a Circular issued this year by Nusron Wahid, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN). ‘That new land, this is a full potential for reform across the board,’ he said.

The programme aims to reduce land inequality, address poverty, resolve agrarian conflicts, and raise the welfare of communities, particularly farmers and farm workers. He explained that, to date, the land acquisition process has been conducted in accordance with applicable regulations, from planning, engagement with communities and stakeholders at the site, to the process of applying for the Right to Manage Land (HPL) to the Ministry of ATR/BPN.

Currently, the HPL process results for the Land Bank amount to around 35,000 hectares, which are also being accelerated for utilisation. The Land Bank Agency aims to double the land it manages by 2026. ‘In 2026, the Land Bank Agency targets 35,000 hectares,’ he said.

According to him, the biggest growth occurred in 2024 with an increase of about 79 percent compared with the previous year. Meanwhile, 2025 continued, though slowed to 5 percent. ‘Thus total land management will reach around 70,000 hectares,’ he said.

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