A New Framework for Agrarian Reform in Indonesia: Key Points for Land Owners

Agrarian reform is a long-discussed idea that has been on the agenda since the enactment of Law No. 5 of 1960 on the Basic Provisions of Agrarian Law. However, the development of regulations concerning agrarian reform is not yet considered to fully address the complexity of agrarian issues in Indonesia. The approval of the Draft Law on the Regulation of Agrarian Reform into law by the Indonesian House of Representatives (DPR RI) on September 2026 marks an important milestone in the journey of agrarian reform in Indonesia. This article will discuss several key points regulated in Law No. 10 of 2026 on Agrarian Reform.

Agrarian Law as Foundation of Agrarian Reform

Possession, ownership, use, and utilization of land and agrarian resources are fundamental issues directly related to social justice, public welfare, environmental sustainability, and national development. Since the promulgation of Law No. 5 of 1960 on the Principal Provisions on Agrarian (“Agrarian Law”), the state has laid the foundation for a national agrarian legal policy to end the colonial agrarian system and position land, water, and natural resources as instruments for realizing a just and prosperous society. Nevertheless, more than six decades after the Agrarian Law took effect, agrarian reform has not been fully implemented. Numerous challenges persist in the land sector, such as disparities in land possession and ownership, land conflicts and disputes, abandoned land, and weak legal protections for indigenous communities and farmers.

Agrarian reform refers to the philosophical foundations of natural resource management based on Article 33, paragraph (3) of the 1945 Constitution of the Republic of Indonesia, Agrarian Law, and the policy direction for agrarian reform in accordance with MPR (People’s Consultative Assembly) Decree No. 9 of 2001 on Agrarian Reform and Natural Resource Management.

The Agrarian Law lays a more detailed concept and instruction for the implementation of the agrarian reform or land reform. Article 10 of Agrarian Law essentially stipulates that every farmer and legal entity that owns a farm must actively cultivate it by avoiding non extortion means. A more detailed explanation is outlined it the chapter II point 7 of general elucidation of the law. In short, the elucidation explains that the active cultivation of a farm by its owner is a principle of agrarian reform. But this principle is not without exception since a land owned by one party may still be cultivated by the other party through profit sharing, rent, right of use, or even right to build. Nevertheless, to protect the weak from the strong, the Agrarian Law advises the government to issue a specific regulation on that subject matter. The elucidation clearly says that this principle must further be regulated.

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The principle of agrarian reform, which in essence on the self-cultivation of its owned farm, is heavily related to the minimum and maximum limit of land ownership. Article 7 of Agrarian Law stipulates that possessing and owning land beyond limit damages the public interest. This principle clearly prohibits the “groot-grondbezit” which literally means “large-scale land ownership.” Both the Agrarian Law and its elucidation explain that the possession and ownership of a land beyond limit is not allowed. The Agrarian Law’s elucidation stipulate that it has to be regulated in a short period (after its promulgation) through laws and regulations. If the principle of agrarian reform has exception, since an owned farm may be cultivated by other parties, the principle of owning land beyond limit has no exception.

The implementation of agrarian reform to date has primarily been based on executive policies, namely Presidential Regulation No. 86 of 2018 on Agrarian Reform, which was subsequently revoked and replaced by Presidential Regulation No. 62 of 2023 on the Acceleration of Agrarian Reform Implementation (“Presidential Regulation No. 62/2023”). However, this framework is considered insufficient to fully address the complexity of land issues. Furthermore, from a historical perspective, several regulations were enacted that implicitly encourage agrarian reform in Indonesia, including Law No. 2 of 1960 on Profit-Sharing Agreements; Law No. 51 Prp of 1960 on the Prohibition of Land Use Without Permission from the Rightful Owner or Authorized Representative; and Government Regulation in Lieu of Law No. 56 of 1960 on the Determination of Agricultural Land Area.

The approval of the Draft Law on the Regulation of Agrarian Reform into law by the Indonesian House of Representatives (DPR RI) on 22 September 2026 marks an important milestone in the journey of agrarian reform in Indonesia. This article will discuss several key points regulated in Law No. 10 of 2026 on Agrarian Reform (Agrarian Reform Law).

Agrarian Reform Legal Framework

The scope set forth in the Agrarian Reform Law encompasses the implementation of agrarian reform on a national scale through the restructuring of land possession, ownership, use, and utilization; land restitution; land redistribution; the resolution of agrarian conflicts; and the economic empowerment of those agrarian reform’s subject.

The Agrarian Reform Law defines “agrarian resources” as all natural resources comprising land, water, and airspace, including the natural wealth contained therein. Agrarian reform is defined as the restructuring of the possession, ownership, use, and utilization of agrarian resources—particularly land—in a manner that is more equitable and sustainable through the reorganization of assets and access for the prosperity of the people.

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This article will discuss several key points stipulated in the Agrarian Reform Law, such as the establishment of an agency for agrarian reform, the subjects and objects of the agrarian reform, the resolution of agrarian conflicts, land restitution and redistribution, limits on land ownership, criminal penalties for corporations, and transitional provision.

Establishment of the Agency for Agrarian Reform

The agency responsible for implementing agrarian reform, or the National Agrarian Reform Agency (Badan Reformasi Agraria Nasional – “BRAN”), is the agency that carries out the duties and exercises the authority related to the implementation of agrarian reform nationwide. In carrying out its duties, BRAN has the authority, among other things, to:

1. Designate Priority Locations for Agrarian Reform (Lokasi Prioritas Reforma Agraria – “LPRA”);
2. Temporarily suspend land administration, including the issuance, transfer, encumbrance, and registration of land rights, for land subject to agrarian reform that is in a status of agrarian conflict;
3. requesting the temporary cessation of field actions that are violent or have the potential to lead to violence, whether by the public or security forces, at sites of agrarian conflict, in order to prevent and halt the escalation of violent conflict;
4. to conduct verification and validation of the subjects and objects of agrarian reform;
5. to carry out the resolution of agrarian conflicts, asset restructuring, and access restructuring in the context of implementing agrarian reform; and
6. to issue binding decisions on the resolution of agrarian conflicts, the restoration of rights, land redistribution, and the empowerment of subjects of agrarian reform.

In carrying out its duties and functions, BRAN is supervised by a Supervisory Board to ensure transparency, participation, accountability, and effectiveness in the implementation of agrarian reform. Further provisions regarding the establishment of the Supervisory Board will be regulated in a Presidential Regulation.

As explained above, BRAN has the authority to designate LPRA, objects of agrarian reform, and subjects of agrarian reform. LPRA refers to locations or areas prioritized for the implementation of agrarian reform, as determined by BRAN based on several criteria, including areas experiencing disparities in possession, ownership, use, and utilization of agrarian resources, areas experiencing agrarian conflicts, areas with abandoned land, and areas where land possession exceeds the maximum limit. The designation of LPRA areas serves as the basis for resolving agrarian conflicts, restoring land rights, redistributing land, and empowering the subjects of agrarian reform.

The Agrarian Reform Law regulates that the objects of agrarian reform will include land and other agrarian resources.  It further sets that the objects of agrarian reform may derive from the result of agrarian conflict resolution or non-conflict, including:

1. state-owned land and/or other areas of use that have been occupied in good faith and continuously utilized by the people/community for 20 (twenty) years;
2. community land (tanah masyarakat) that overlaps with and/or conflicts with rights to cultivate (Hak Guna Usaha – “HGU”), rights to build, rights of use, rights of management, and/or business permits, whether still valid or already expired;
3. community land that conflicts with or overlaps with forest areas and/or business permits in the forestry sector, state-owned property, regionally-owned property, assets of state-owned enterprises, or assets of regionally-owned enterprises that have been occupied and utilized by the community in good faith and continuously, whether located within or outside forest areas;
4. land subject to HGU, rights to build, rights of use, rights of management, and business permits that exceed the maximum limits and/or exceed the area of the rights and/or permits granted;
5. land acquired from the obligation to provide at least 20% (twenty percent) of the area of state land granted to holders of HGU in the process of land rights adjustment, grant, and extension;
6. replacement land for poor communities living in disaster-prone areas, critical lands, and/or lands that have lost their environmental carrying capacity;
7. transmigration land that overlaps with and/or conflicts with HGU, rights to build, rights of use, rights of management, forest areas, business permits, state-owned property, regionally-owned property, assets of state-owned enterprises, or assets of regionally-owned enterprises;
8. abandoned land that has not yet been and/or has been continuously occupied and utilized by the people/community;
9. land acquired through the obligation to provide land that was not carried out in accordance with the provisions of laws and regulations;
10. absentee land;
11. land with ownership exceeding the maximum limit;
12. emergent land; and
13. land rights voluntarily surrendered by the rights holder.

Furthermore, the subjects of agrarian reform consist of individuals, community groups, and indigenous communities. With regard to individuals, the Agrarian Reform Law sets several general criteria i.e., Indonesian citizen, not less than 18 years old or already married, domiciled in the territory of the land redistribution object in one district or its boundary provided that it is within one regency/city.

The subjects of agrarian reform have the right to receive land distributed from the objects of agrarian reform based on a decision by BRAN.

It is important to note that the provisions regarding the subjects and objects of agrarian reform under the Agrarian Reform Law are nothing new. They have been already included in Presidential Regulation No. 62/2023 (and before that regulation of 2018). The Agrarian Reform Law centralizes authority by assigning the determination of the subjects and objects of agrarian reform to BRAN, previously, this authority rested with the Minister (for determining objects) and the regent or mayor, with input from the district or city agrarian reform task force (for determining subjects).

Regarding subjects, the Agrarian Reform Law does not designate legal entities (i.e., cooperatives, village-owned enterprises, foundations, and legal entities established for religious purposes) as subjects of agrarian reform, as provided for in Presidential Regulation No. 62/2023. However, cooperatives are still included as subjects of agrarian reform as part of the “Community Groups” subject cluster as stipulated in the Agrarian Reform Law.

Furthermore, the provisions regarding the objects of agrarian reform are essentially aligned with the provisions concerning Land Subject to Agrarian Reform (Tanah Objek Reforma Agraria – “TORA”) in Presidential Regulation No. 62/2023. The difference is that under Presidential Regulation No. 62/2023, TORA is grouped into three clusters: TORA from forest areas, TORA from non-forest areas, and TORA resulting from the resolution of agrarian conflicts. Meanwhile, the Agrarian Reform Law directly specifies which lands can be the objects of agrarian reform.

Resolution of Agrarian Conflicts

The agrarian conflicts handled by BRAN are those resulting from overlaps between community and/or village lands and land rights, forest areas, or other business permits, and which have far-reaching social, political, economic, defense, security, or cultural impacts on the community. Areas of agrarian conflict generally consist of land that has long been occupied by communities for generations, serving as a source of livelihood and community identity; subsequently, without the consent of the communities on that land, decrees are issued by public officials, thereby causing agrarian conflicts.

The resolution of agrarian conflicts is carried out through the following stages:

1. receipt and collection of reports on agrarian conflicts from the public and the government;
2. assessment, examination, and verification of agrarian conflicts from both physical and legal perspectives;
3. coordination and cooperation with ministries and/or agencies regarding conflict resolution;
4. issuance of decisions regarding the resolution of agrarian conflicts;
5. determination of the objects and subjects of agrarian reform based on the results of agrarian conflict resolution;
6. restoration of the rights of communities affected by agrarian conflicts;
7. resolving agrarian conflict issues in cooperation with relevant ministries/agencies; and
8. monitoring and evaluating the implementation of decisions regarding the resolution of agrarian conflicts.

Further provisions regarding the resolution of agrarian conflicts shall be stipulated in Government regulations.

Land Restitution and Land Redistribution

The Agrarian Reform Law establishes mechanisms for land restitution regarding objects of agrarian reform owned by certain parties (such as indigenous communities) whose rights have been lost, transferred, or taken over by others as a result of agrarian conflicts, government policies, administrative actions, or other causes that are contrary to the law or agrarian justice. BRAN is granted exclusive authority to identify claims, determine the rightful parties, and directly return the land to the communities concerned. Such restitution ensures the restoration of legal status through the granting of new land rights or equivalent substitute land if physical restitution is not possible.

Land redistribution is a series of activities aimed at reorganizing, distributing, and/or fulfilling land rights derived from the objects of agrarian reform to the eligible subjects of agrarian reform as a form of restoration of rights resulting from agrarian conflicts or other actions that give rise to land rights. BRAN carries out land redistribution to subjects of agrarian reform through the following stages: identification and verification; mapping of the objects and subjects of redistribution; determination of the type of land rights for redistribution purposes; and the handover of proof of land rights ownership to the recipients.

Obligation to Surrender 20% of Land for the HGU Holders

The Agrarian Reform Law imposes an obligation on HGU holders and holders of plantation business permits must surrender at least 20% (twenty percent) of the total area of their HGU land.

This provision does not impose a new obligation but rather reaffirms obligations already established in laws and regulations prior to the enactment of the Agrarian Reform Law. This is stipulated in several laws and regulations. One of the legal bases is Article 58 of Law No. 39 of 2014 on Plantations, as lastly amended by Law No. 1 of 2026 on Criminal Law Adjustments (the “Plantation Law”). This provision requires plantation companies that have obtained business licenses for cultivation—where all or part of their land originates from (i) areas designated for other uses outside of HGU; and/or (ii) areas derived from the release of forest areas—to facilitate the development of community plantations covering at least 20% (twenty percent) of the total land area.

This obligation is in line with Article 27 letter i of Government Regulation No. 18 of 2021 on Rights of Management, Land Rights, Apartment Units, and Registration, which stipulates that one of the obligations of HGU holders is to facilitate the development of community plantations covering at least 20% (twenty percent) of the land area granted under the HGU, provided that the rights holder is a legal entity in the form of a company and the land is used for plantation purposes.

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The facilitation may be in the form of loan, profit sharing, other agreed financing means (e.g., grant) or other partnership methods. Therefore, the “to deliver” the 20% of HGU land should be interpreted as “to facilitate” as set forth in the prevailing laws and regulations.

The authority responsible for overseeing the implementation of the obligations stipulated in the Plantation Law is held by the central and regional governments in accordance with their respective jurisdictions. Under Presidential Regulation No. 62/2023, this authority is exercised by the implementation team for the acceleration of agrarian reform (Tim Pelaksana Percepatan Reforma Agraria), chaired by the Deputy for Regional Development and Spatial Planning Coordination at the Coordinating Ministry for Economic Affairs, as well as the Provincial Agrarian Reform Task Force (Gugus Tugas Reforma Agraria), chaired by the governor. Meanwhile, under the Agrarian Reform Law, these authorities are exercised and centralized through BRAN.

Further provisions regarding the obligations of HGU holders and holders of plantation business permits shall be stipulated in a Presidential Regulation.

Limits on Land Possession or Ownership

The state is obligated to prevent the re-transfer of land obtained through agrarian reform that leads to the concentration of land ownership, possession, use, and utilization. Therefore, the Agrarian Reform Law prohibits the transfer of land obtained through agrarian reform if such a transfer results in the concentrated possession, ownership, use, and utilization of land. To ensure fairness in land rights, ownership, possession, use, and utilization of land that exceeds established limits is not permitted. Furthermore, in the framework of land management, the government is obligated to conduct sustainable land management by taking into account environmental carrying capacity, ecosystem characteristics, disaster risks, and the livelihood needs of the community.

The Agrarian Reform Law stipulates that the government shall set minimum and maximum limits on land possession and ownership. The minimum limit is set at an area sufficient to ensure a decent standard of living in accordance with applicable laws and regulations. The maximum limit is set at an area sufficient to ensure equitable distribution of land possession and ownership, based on the availability of productive areas, cultivated areas, population density, environmental carrying capacity, and the total area of the regency or city, in accordance with applicable laws and regulations.

In order to reduce disparities in land possession and ownership, the maximum limits on land possession, ownership, utilization, and use apply cumulatively to a single business entity and/or its affiliated business entities, whether in the form of land rights or business licenses.  In this context, the spirit of limiting cumulative land ownership is also reflected in the regulations regarding the obtainment of Location Permits applicable to corporation, which later evolved into the Spatial Utilization Activity Conformity (KKPR) regime. Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia No. 17 of 2019 on Location Permits, as amended by Regulation of the Minister of Agrarian Affairs No. 13 of 2020 (“MoAA Regulation No. 13/2020”) regulates restrictions on the issuance of Location Permits by taking into account the affiliation between a business entity and other business entities within the same group.

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The provisions regarding maximum limits in the Agrarian Reform Law do not apply to state-owned enterprises, regionally-owned enterprises, and cooperatives.

These structural restrictions are specifically intended to reduce the Gini ratio of land ownership in a particular region to a maximum of 0.30.  As a reference, data on the Gini ratio regarding land ownership and possession in Indonesia is currently scattered across various sources. According to the 2025–2029 Strategic Plan of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, the Gini ratio of land possession inequality as of 2024 stood at 0.68.  This figure indicates that 68% of Indonesia’s land and wealth is controlled by just 1% of the population.  Meanwhile, in August 2026, Embun Sari, Director General of Agrarian Reform at the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, stated that Indonesia’s Gini ratio for land ownership remains high at approximately 0.77.  Furthermore, data from the National Land Agency in 2022 indicates that the Gini ratio of land ownership and possession is 0.58.  The following data shows the Gini ratio of land ownership and possession in Indonesia since 1973:

1. 1973: 0,55
2. 1983: 0,5
3. 1993: 0,64
4. 2003: 0,72
5. 2013: 0,68

In this context, the Gini ratio classification published by the Central Statistics Agency can be used as a reference for interpreting the level of disparity, with the following details:

1. Ratio 0–0.2: Low category
2. Ratio 0.2–0.4: Moderate category
3. Ratio 0.4–0.6: High category
4. Ratio 0.6–1.0: Very high category

Based on this classification and despite the differences in the figures mentioned above, the Gini ratio of disparities in land ownership and possession in Indonesia indicates a level of disparity that falls within the high to very high categories. Thus, the establishment of a 0.30 threshold in the Agrarian Reform Law is intended to reduce disparities in land ownership and possession, which currently remain in the high to very high categories.

The government will consider several factors when setting minimum and maximum limits on land possession and ownership, such as the Gini ratio of land possession and ownership, land availability, population density, poverty rates, environmental conditions and functions, and the limited area of a province or regency/city.

In addition, land that encompasses the entire area of a small island or that directly borders the coastline may not be granted as a single land right to a single individual or legal entity. In this context, it is also necessary to examine the regulations governing land ownership on small islands as set forth in Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 17 of 2016 on Land Management in Coastal Areas and on Small Islands (“MoAA Regulation No. 17/2016”). Article 9 of MoAA Regulation No. 17/2016 limits the granting of land rights on small islands to a maximum of 70% of the island’s total area, subject to spatial planning and/or zoning plans.

This provision also requires that at least 30% of a small island’s area be directly controlled by the state for designated protected areas, public spaces, or the public interest. Thus, the provision regulated in the Agrarian Reform Law has been adopted in principle by the ministerial regulation. Nevertheless, this provision makes it more definitive on the limit of land ownership in relation to the small islands.  On another matter but directly related, what constitutes “land parcels directly bordering the coastline”, requires further clarification. Further details regarding the application of minimum and maximum limits on land ownership and possession, including their implications for land parcels on small islands, must await further regulations in a Government Regulation, as mandated by the Agrarian Reform Law.

Business entities should take note of this provision because the maximum limit is calculated on a cumulative basis, including land ownership by affiliated business entities. Furthermore, land ownership that exceeds the maximum limit may be subjected to agrarian reform and, based on a decision by BRAN, may subsequently be redistributed to the subjects of agrarian reform.

As outlined in the beginning of this writing, the determination of minimum and maximum limits on land ownership or possession is not a new concept in Indonesian legislation. Even before the regulation on the location permits, for example, Government Regulation in Lieu of Law (Perppu) No. 56 of 1960 on the Determination of Agricultural Land Area was issued as mandated by Article 17 of the Agrarian Law. This Perppu regulates, among other things: the government’s efforts to ensure that every farmer owns a minimum of 2 hectares of agricultural land and sets a maximum limit on agricultural land ownership. Furthermore, there is Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 18 of 2016 on the Control of Agricultural Land Ownership, which sets limits on agricultural land ownership by individuals and legal entities. Limitations on agricultural land ownership by individuals are determined based on the population density of the area where the agricultural land is located, namely:

1. not dense, with a maximum area of 20 hectares;
2. less dense, with a maximum area of 12 hectares;
3. moderately dense, with a maximum area of 9 hectares; or
4. highly dense, with a maximum area of 6 hectares.

Moreover, the limits on agricultural land ownership for legal entities are in accordance with the decree granting such rights.

The spirit of the provisions on land possession limits is also reflected in the regulations governing the obtainment of Location Permits. Regulations regarding the obtainment of location permits have been stipulated since 1993, most recently in 2020, before such permits were replaced and subsequently evolved into the KKPR mechanism. MoAA Regulation No. 13/2020 sets forth the limits on the area of land possession granted through location permits to business entities and other business entities that constitute a single group, not exceeding:

1. Housing and residential development businesses
   • Housing and residential areas
     1. Within 1 province: 400 hectares
     2. Nationwide: 4,000 hectares
   • Hotel resort areas
     1. Within 1 province: 200 hectares
     2. Nationwide: 4,000 hectares
2. Plantation businesses operated as large-scale plantations granted HGU
   • Sugarcane commodity
     1. Within 1 province: 60,000 hectares
     2. Nationwide: 150,000 hectares
   • Other food commodities
     1. Within 1 province: 20,000 hectares
     2. Throughout Indonesia: 100,000 hectares

Nevertheless, the existence of a maximum limit on land ownership does not automatically guarantee the effectiveness of its implementation. Under the Location Permit regime, MoAA Regulation No. 13/2020 has regulated a number of supervisory instruments, including the obligation of Location Permit holders to report every 3 (three) months on land acquisition and use to the Head of the Land Office as stipulated in Article 22, as well as monitoring and evaluation by the competent authority as stipulated in Article 25.

The results of such monitoring and evaluation may serve as the basis for the renewal, issuance of a new Location Permit, or revocation of a Location Permit. However, these provisions do not, by themselves, address whether the available mechanisms are sufficient to ensure that all land holdings by business entities and other business actors within the same group can be identified and accounted for in the application of the maximum land holding limit. It remains to be confirmed whether the agrarian reform supervisory mechanism to be established in the future will be similar to the Location Permit regime.

Thus, provisions regarding minimum and maximum limits on land ownership or possession are nothing new in Indonesia’s land laws and regulations. Nevertheless, the inclusion of these limits in the Agrarian Reform Law further reinforces the spirit of agrarian reform aimed at reducing disparities in land ownership or possession within a certain region of Indonesia.

Criminal Sanctions for Corporations

The Agrarian Reform Law introduces strict criminal penalties against corporations that unlawfully influence the determination of the objects or subjects of agrarian reform, the resolution of land conflicts, or the issuance of BRAN decisions by forging documents; altering, destroying, or concealing a document; or using forged documents. Such criminal offenses are punishable by a criminal fine of no less than Category IV (IDR 200,000,000 (two hundred million Rupiah)) and no more than Category VII (IDR 5,000,000,000 (five billion Rupiah)), as stipulated in Law No. 1 of 2023 on the Criminal Code, as amended by Law No. 1 of 2026 on Criminal Penalty Adjustments (KUHP).

Criminal penalties apply to any person who uses violence, threats of violence, intimidation, manipulation of law enforcement, or other means to obstruct the implementation of agrarian reform, the exercise of rights by subjects of agrarian reform, community advocacy activities, or the performance of BRAN’s duties and authorities. Violations of these provisions are punishable by imprisonment for a maximum of 4 (four) years or a criminal fine of up to Category IV (IDR 200,000,000 (two hundred million Rupiah)). If such acts result in serious injury, the penalty increases to imprisonment for a maximum of 5 (five) years or a criminal fine of up to Category IV (IDR 200,000,000 (two hundred million Rupiah)).

Furthermore, criminal penalties apply to corporations that continue to occupy, possess, utilize, or develop land that has been designated as an object of agrarian reform, provided that such actions are not based on a valid right, permit, or other lawful basis for possession; such corporations are subject to a criminal fine of at least Category IV (IDR 200,000,000 (two hundred million Rupiah)) and at most Category VI (IDR 2,000,000,000 (two billion Rupiah)).

Moreover, criminal sanctions may be imposed on a corporation if, either directly or indirectly, in its own name or using the name of another party, it holds, owns, or possesses land resulting from agrarian reform that, in aggregate, exceeds the maximum limit on land possession or ownership, with a criminal fine ranging from at least Category IV (IDR 200,000,000 (two hundred million Rupiah)) to at most Category VI (IDR 2,000,000,000 (two billion Rupiah)). This provision may apply to the possession or ownership of land that is formally registered in the name of another party but is substantively still possessed or controlled by a specific party, provided that the elements of the criminal offense set forth in this provision are met.

Transitional Provisions

Upon the enactment of the Agrarian Reform Law:

1. Ministries and agencies exercising authority in the field of agrarian reform are required to delegate such authority to BRAN no later than 1 (one) year after the enactment of the Agrarian Reform Law;
2. All provisions of laws and regulations governing possession, ownership, use, utilization, the granting of rights, permits, concessions, management, and the resolution of agrarian conflicts shall remain in effect to the extent they do not conflict with the provisions of the Agrarian Reform Law;
3. The resolution of agrarian conflicts, the restoration of land rights (land restitution), land redistribution, and the empowerment of subjects of agrarian reform that were already underway or in the process of being implemented prior to the effective date of the Agrarian Reform Law shall remain in effect and be integrated into the implementation of agrarian reform pursuant to the Agrarian Reform Law;
4. Any conflicts, overlaps, or inconsistencies in authority among ministries/agencies, state-owned enterprises, regionally-owned enterprises, and regional governments in the implementation of agrarian reform shall be resolved in accordance with the provisions of the Agrarian Reform Law;
5. Ministries/agencies, state-owned enterprises, regionally-owned enterprises, and regional governments shall align regulations, policies, and decisions regarding the granting of land rights, licensing, and governmental actions related to the implementation of agrarian reform with the provisions of the Agrarian Reform Law; and
6. Ministries/agencies, state-owned enterprises, regionally-owned enterprises, regional governments, and other parties with authority over agrarian resources are required to align their policies with the objectives of agrarian reform as set forth in the Agrarian Reform Law.

Furthermore, upon the establishment of BRAN, all duties, functions, authorities, programs, activities, rights, and obligations relating to the implementation of agrarian reform that were previously carried out by various stakeholders, including the Agrarian Reform Task Force (Gugus Tugas Reforma Agraria), the Agrarian Reform Acceleration Implementation Team (Tim Pelaksana Percepatan Reforma Agraria), and other task forces or institutions having duties and functions in the field of agrarian reform under applicable laws and regulations, shall be transferred to BRAN.

Implementing Agrarian Reform Law

The Agrarian Reform Law governs that all provisions under the law are non-retroactive. All instructed implementing regulations must be enacted no later than 1 (one) year after the law has become effective. All existing implementing regulations are still valid provided that they are not conflicting with the provisions under the Agrarian Reform Law.

In essence, the Agrarian Reform Law aims to address the issues, developments, and legal needs that have arisen in the implementation of agrarian reform in Indonesia. The objectives to be achieved through the Agrarian Reform Law are the establishment of a national agrarian reform system capable of correcting agrarian structural inequalities; providing legal certainty and protection for the rights of the people; resolve agrarian conflicts fairly and with a focus on restoration; ensure that the redistribution of land and other agrarian resources is targeted at the appropriate recipients and subjects; integrating asset management with economic empowerment; prevent the re-emergence of inequalities in land possession; and achieve equitable and sustainable management of agrarian resources.

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Reference:

• Law No. 10 of 2026 on Agrarian Reform.
• Law No. 5 of 1960 on the Basic Provisions of Agrarian Law
• Law No. 1 of 2023 on the Criminal Code, as amended by Law No. 1 of 2026 on Criminal Penalty Adjustments
• Government Regulation in Lieu of Law No. 56 of 1960 on the Determination of Agricultural Land Area
• Presidential Regulation No. 62 of 2023 on the Acceleration of Agrarian Reform Implementation
• Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 17 of 2016 on Land Management in Coastal Areas and on Small Islands
• Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 18 of 2016 on the Control of Agricultural Land Ownership.
• Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 13 of 2020 concerning Amendments to Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 17 of 2019 concerning Location Permits