Property Industry Leaders Respond to Presidential Regulation on Rice Paddy Land Conversion Controls

JAKARTA - Indonesia’s property industry is facing new administrative challenges following the issuance of Presidential Regulation (Perpres) Number 4 of 2026 concerning land conversion. The regulation clarifies limits on converting rice paddy land into residential or commercial areas. This policy aims to safeguard national food security but directly impacts property developers’ land reserves (land bank). Developers view this regulation as a government effort to reorganise spatial planning, which has long been subject to overlapping regulations.

Sinarmas Land, through Hermawan Wijaya, Director of PT Bumi Serpong Damai Tbk (BSDE), responded positively to the regulation’s introduction. According to him, spatial planning is inherently dynamic and requires periodic review. For BSDE, which manages 5,915 hectares of land in BSD City, their land status is relatively secure from disputes over productive rice paddies.

Paramount Land President Director M. Nawawi similarly noted that virtually all major developers in Indonesia have now received what he termed a “love letter” from the government. This refers to invitations for land status clarification, particularly regarding Protected Rice Paddy Land and Sustainable Food Agricultural Land (LP2B). “Almost all developers have received the letter, including myself. But that is normal. The government does not want to seize land, but to clarify. Why has this land not been developed? Are there problems or not?” Nawawi stated.

However, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency holds different documentation concerning conservation. These two sets of data frequently fail to synchronise. “Regional Detailed Spatial Plans indicate brown colour (permitted for development), but central data shows green (conservation). This sometimes causes difficulties due to bureaucratic issues. Developers already hold complete permits from site plans to water body permits, but regulations change midway,” Nawawi added.