Agrarian Reform Officially Regulated under Law No. 10 of 2026

Introduction

On 30 September 2026, Law No. 10 of 2026 on the Regulation of Agrarian Reform (“Agrarian Reform Law”) was promulgated and took effect. The Agrarian Reform Law consists of 14 chapters and 52 articles and constitutes the first statute specifically governing agrarian reform as a legal framework at the statutory level. This Law aims to restructure the control, ownership, use, and utilisation of land through asset reform and access reform, among other things, to reduce disparities in land control, resolve agrarian conflicts, guarantee access to land for vulnerable groups, achieve food sovereignty, and prevent the concentration of land control in the hands of a limited number of parties.

The enactment of the Agrarian Reform Law was motivated by the need to establish a fairer, more comprehensive, integrated, and sustainable arrangement of land control and utilisation in accordance with the constitutional mandate. To date, the implementation of agrarian reform has continued to face several obstacles, including fragmented authority among institutions, weak mechanisms for resolving structural agrarian conflicts, inconsistent implementation of the social function of land, and the lack of integration between asset reform and access reform. Furthermore, the previous regulations on agrarian reform, which were dispersed across various regulations subordinate to statutes, were considered inadequate to address the issue of abandoned land and provide protection for indigenous communities, farmers, and fishermen. Through this Law, the Government establishes a more comprehensive national regulatory framework for agrarian reform, covering data collection, the designation of land objects and beneficiaries, conflict resolution, restoration of rights, land redistribution, and the economic empowerment of land beneficiaries.

Key Provisions

Principles, Objectives, and Stages of Implementation

Agrarian reform is based on nine principles, including social justice, equality (including gender equality, according to the Elucidation), legal certainty, and the social function of land (Article 2). One of its principal objectives is to prevent land from becoming concentrated once again in the hands of a limited number of parties (Article 3). Agrarian reform is implemented through the State's right of control over land, prioritising the utilisation of land by its beneficiaries (Article 4), based on a roadmap to be stipulated by Presidential Regulation (Article 5). Article 6 establishes nine implementation activities: the preparation and designation of Agrarian Reform Priority Locations (Lokasi Prioritas Reforma Agraria or “LPRA”), receipt of proposals for land objects, conflict resolution, measurement of land objects, restoration of rights, redistribution, legalisation of rights, and empowerment of beneficiaries. The results of monitoring and evaluation must be reported to the President annually (Article 7). Article 8 requires ministries, institutions, Regional Governments, Village Governments, and relevant parties to provide data and support for the implementation of agrarian reform.

Implementing Institution with Extensive Powers

The Agrarian Reform Law establishes an Institution under and accountable to the President to implement agrarian reform, as stipulated in Article 10. Pursuant to Articles 11 and 12, the Institution is tasked with planning, implementing, monitoring, and evaluating agrarian reform. In carrying out these duties, the Institution is responsible for formulating national strategies, managing and updating data, determining implementation targets and stages, identifying and designating agrarian reform objects and subjects, and implementing asset reform through land redistribution and the restoration of rights.

Article 13 grants the Institution several powers that directly affect businesses, including the authority to temporarily suspend land administration and business licensing processes, including the issuance, transfer, encumbrance, extension, renewal, and registration of land rights, as well as the designation and determination of forest areas in respect of agrarian reform objects subject to conflict. The Institution may also request the temporary suspension of field activities involving violence or potentially resulting in violence, whether carried out by members of the public or security personnel. In addition, the Institution is authorised to verify and validate agrarian reform objects and subjects, resolve agrarian conflicts, implement the restoration of rights, land redistribution, and the empowerment of agrarian reform subjects, as well as issue binding settlement decisions.

The establishment, duties, functions, powers, and organisational structure of the Institution shall be further regulated by Presidential Regulation, as stipulated in Article 14.

Agrarian Reform Priority Locations (LPRA)

Article 16 paragraph (1) stipulates that an area may be designated as an LPRA if it is affected by disparities in land control, agrarian conflicts, or poverty, or if the area contains abandoned land, absentee land, or landholdings exceeding the maximum limits. According to the Elucidation of Article 16 paragraph (1), an LPRA may be located in rural areas, plantations, forests, mining areas, coastal areas, or urban areas. Absentee land refers to agricultural land whose owner resides outside the sub-district in which the land is located or outside an adjoining sub-district. A designated LPRA must include potential land objects, potential beneficiaries, and conflict resolution targets, and must subsequently be entered into the agrarian reform information system, as provided for in Article 16 paragraphs (4) and (6). Free trade areas (such as Batam and Sabang) and land management rights held by ministries/institutions are excluded under Article 16 paragraph (5).

Agrarian Reform Objects: Land Eligible for Redistribution

Article 19 paragraph (1) establishes 13 sources of land that may constitute agrarian reform objects, arising from both conflict resolution and non-conflict situations:

1. State land or other land use areas under the good-faith possession of communities for 20 years;

2. Community land overlapping with Cultivation Rights (Hak Guna Usaha or “HGU”), Building Use Rights (Hak Guna Bangunan or “HGB”), Rights of Use (Hak Pakai), Management Rights (Hak Pengelolaan), or business licences, whether still valid or expired;

3. Community land subject to conflicts involving forest areas, forestry licences, State/Regional Government assets, or assets of State-Owned Enterprises/Regional-Owned Enterprises;

4. Land subject to rights or licences exceeding the maximum limits or the area granted;

5. Land arising from the obligation to provide at least 20% of the area of State land granted to HGU holders, in the process of conversion, granting, and extension of rights;

6. Replacement land for poor communities in disaster-prone areas or critical land areas;

7. Transmigration land overlapping with or subject to conflicts involving rights, licences, forest areas, or State assets;

8. Abandoned land;

9. Land arising from unfulfilled land provision obligations;

10. Absentee land;

11. Land under possession exceeding the maximum limits;

12. Accreted land; and

13. Land subject to rights voluntarily surrendered by the rights holder.

Specifically for land referred to in item 3, possession of the land must have continued for at least 20 consecutive years in good faith, pursuant to Article 19 paragraph (3). Agrarian reform objects are designated by a decision of the Institution, as provided for in Article 19 paragraph (5). Subsequently, the relevant ministries, Regional Governments, and State-Owned Enterprises are required to relinquish assets or forest areas designated as agrarian reform objects within a maximum period of 1 year, in accordance with Article 19 paragraphs (6) and (7), as well as Article 21. Where such relinquishment affects legitimate rights holders or third parties not involved in the conflict, Article 19 paragraph (8) guarantees their right to receive fair and reasonable compensation based on mutual agreement.

Furthermore, Article 20 affirms that water constitutes a people's right in the nature of collective ownership. Accordingly, the Government is required to reorganise the control of agrarian resources where such control results in the loss of community access to water.

Agrarian Reform Subjects: Land Beneficiaries

Articles 22 and 23 stipulate that agrarian reform subjects may comprise individuals, community groups in the form of associations, community organisations, unions, or cooperatives, as well as indigenous communities designated by the Institution. Individual beneficiaries must be Indonesian citizens, at least 18 years of age or married, and reside in the sub-district where the land object is located or in a directly adjoining sub-district, as stipulated in Article 22 paragraph (4).

Furthermore, Article 22 paragraph (5) establishes 13 categories of agrarian reform beneficiaries, including landless farmers or farmers owning less than 0.5 hectares of land, tenant farmers, agricultural labourers, women without access to land, transmigrants whose land is subject to conflict, fishermen and small-scale salt farmers, the urban poor, and disaster victims. Specifically for indigenous communities, agrarian reform also encompasses the recognition and restoration of customary territories, as stipulated in Article 24.

Rights and Obligations of Beneficiaries

Article 25 stipulates that agrarian reform subjects are entitled to legal certainty over land through proof of ownership, empowerment support, and guarantees of legal protection throughout the implementation of agrarian reform. For indigenous communities, such rights also include the recording of land in the land register. Guarantees of legal protection are provided through the registration mark for Agrarian Reform Priority Locations (“LPRA”), which identifies agrarian reform objects and subjects, as well as through the prevention of the issuance of Government decisions concerning the control, ownership, and use of land that are inconsistent with the objectives of agrarian reform.

On the other hand, Article 26 requires every agrarian reform subject to actively and independently possess, use, and utilise land in accordance with the objectives of agrarian reform, while maintaining soil fertility and environmental sustainability. If an agrarian reform land object remains unused for 2 consecutive years, the Institution is required to issue a written warning requiring that the land be put back into use or cultivation. If, within 1 year from the issuance of the warning, the land remains unused or uncultivated, the land rights shall be revoked and may be granted to another party in accordance with the provisions of laws and regulations. Further provisions concerning the warning mechanism, revocation of rights, and granting of rights to other parties shall be regulated by Presidential Regulation, as stipulated in Article 27.

Agrarian Conflict Resolution

Article 28 stipulates that agrarian conflicts handled by the Institution include conflicts arising from overlapping community and/or village land with land rights, forest areas, or other business licences that have broad social, political, economic, defence, security, or cultural impacts. Such conflicts generally arise from injustices in the control, ownership, use, and utilisation of land resulting from unequal power relations between communities and business entities, legal entities, or Government agencies. This Law also recognises that conflicts frequently occur in respect of land that has long been occupied by communities across generations and has become a source of livelihood and identity for those communities, but in respect of which public officials subsequently issue decisions without community consent.

Agrarian conflict resolution must be carried out effectively, transparently, and fairly, prioritising deliberation and the restoration of social relations, without prejudice to the rights of aggrieved parties and while maintaining legal certainty for both agrarian reform subjects and the parties concerned. Article 28 paragraph (4) establishes five principles of conflict resolution, namely:

• Recognition of agrarian conflicts;

• Favouring agrarian reform subjects;

• Justice-based resolution;

• Restoration of land rights; and

• Empowerment of agrarian reform subjects.

Such resolution aims to end conflicts, fulfil and restore community rights over land, address disparities in land control and ownership, provide legal certainty, and prevent the recurrence of agrarian conflicts.

Furthermore, Article 29 stipulates eight stages of agrarian conflict resolution, namely:

1. Receipt and collection of reports on agrarian conflicts from the public and the Government;

2. Assessment and physical and legal verification of conflicts;

3. Coordination and cooperation with relevant ministries and/or institutions;

4. Issuance of agrarian conflict resolution decisions;

5. Designation of agrarian reform objects and subjects based on the results of conflict resolution;

6. Restoration of the rights of communities affected by conflicts;

7. Resolution of conflict-related issues through cooperation with relevant ministries/institutions; and

8. Monitoring and evaluation of the implementation of conflict resolution decisions.

The results of conflict resolution must be consistent with the objectives of agrarian reform and integrated into a single agrarian reform database. Further provisions concerning the mechanism for resolving agrarian conflicts shall be regulated by Government Regulation, as mandated by Article 29 paragraph (3).

Restoration of Rights, Redistribution, and Empowerment

The restoration of rights applies to land that has been lost or taken into possession by another party as a result of conflicts, Government policies, or administrative actions contrary to law. Such land shall be returned, or replaced with other land or an equivalent form of remedy if its return is not possible (Article 31). Redistribution shall be carried out in stages, from mapping and public outreach to the delivery of proof of ownership (Article 32 paragraph (1)). Parties, including corporations, that continue to possess land designated as an agrarian reform object shall be issued a written warning (Article 32 paragraph (2), and may be subject to criminal penalties if they lack a valid legal basis for such possession (Article 44).

Beneficiaries may be granted Ownership Rights (Hak Milik), HGB, Rights of Use (Hak Pakai), HGU, customary land rights (Hak Ulayat), or joint ownership, meaning a single right jointly held by a group to prevent land from being fragmented or becoming concentrated once again (Article 33). Land certificates shall be issued by the Land Office based on a decision of the Institution, but may not be issued in social forestry areas or customary forests (Article 33 paragraphs (6) and (7)). Empowerment constitutes a mandatory component of redistribution and provides opportunities for partnerships between beneficiaries, businesses, and financial institutions (Article 34).

Legal Protection and the Obligation to Obtain Community Consent

Article 35 paragraph (1) guarantees the suspension of the issuance of Government policies concerning agrarian reform objects until a decision of the Institution has been issued. The same Article stipulates that beneficiaries, community facilitators, and any person defending their land rights may not be subject to criminal or civil proceedings. To prevent new conflicts, the Government is required to apply the principle of free, prior and informed consent (FPIC) from affected communities in the granting of land rights, the issuance of business licences, and the adoption of development policies, and to use community maps as a basis for comparison (Article 35 paragraph (2)). This provision may potentially prolong the licensing process for land-based projects.

Restrictions on Transfers and Maximum Limits on Land Control

Land acquired through agrarian reform may not be transferred if such transfer results in the concentration of land control (Article 36 paragraph (4)). Accordingly, such land cannot be freely sold or pledged as security. The Government will also establish minimum and maximum limits on land control (Article 37). For corporations, the maximum limit shall be calculated cumulatively together with their affiliated business entities, covering both land rights and business licences (Article 37 paragraph (4)). Exceptions are granted only to State-Owned Enterprises, Regional-Owned Enterprises, and cooperatives (Article 37 paragraph (5)). The target of these restrictions is to reduce the Gini coefficient of land control to 0.30 (Article 37 paragraph (7)). Furthermore, a single parcel of land encompassing an entire small island or directly bordering the coastline may not be granted to a single individual or legal entity (Article 37 paragraph (8)). The specific land area limits shall be regulated by Government Regulation.

Participation, Reporting, and Funding

Article 38 grants the public the right to participate actively in the implementation of agrarian reform, particularly in agrarian conflict resolution, land redistribution and restoration of land rights, as well as the empowerment of agrarian reform subjects. The Institution and the Government are required to guarantee meaningful public participation by providing adequate mechanisms, facilities, time, and support. Members of the public who participate are also protected against threats, intimidation, criminalisation, violence, discrimination, and other actions that obstruct participation, including through the provision of protection for complainants, witnesses, and related parties. Further provisions concerning public participation shall be regulated by Government Regulation.

Furthermore, Article 39 requires the Institution to submit reports on its performance and the implementation of agrarian reform to the President and the House of Representatives (Dewan Perwakilan Rakyat or “DPR”) at least once annually, no later than 3 months after the end of the fiscal year. Such reports must, at a minimum, contain updates on the resolution of agrarian conflicts, restoration of land rights, land redistribution, empowerment of agrarian reform subjects, as well as follow-up plans and improvements to the implementation of national agrarian reform. The Institution is also required to publish the reports through the agrarian reform information system and other public media that are easily accessible to the public, while observing the provisions concerning public information disclosure and personal data protection.

Article 40 stipulates that funding for the implementation of agrarian reform shall be sourced from the State Budget (Anggaran Pendapatan dan Belanja Negara or “APBN”), Regional Budget (Anggaran Pendapatan dan Belanja Daerah or “APBD”), and other lawful and non-binding funding sources in accordance with the provisions of laws and regulations.

Criminal Provisions

This Law contains five Articles prescribing criminal offences (Articles 41 to 45), targeting members of the public, corporations, and public officials. The applicable fines refer to the fine categories under the Criminal Code (Law No. 1 of 2023), namely Category IV amounting to IDR 200 million, Category V amounting to IDR 500 million, Category VI amounting to IDR 2 billion, and Category VII amounting to IDR 5 billion. The details are as follows:

Transitional Provisions

The transitional provisions of the Agrarian Reform Law regulate adjustments to the implementation of agrarian reform that commenced prior to the entry into force of this Law. Pursuant to Article 46, all agrarian reform activities must comply with the principles, objectives, policies, and provisions of this Law. Ministries/institutions that have previously exercised authority in the field of agrarian reform are required to delegate their authority to the Institution no later than 1 year from the entry into force of this Law. If such authority is not delegated within that period, the relevant authority shall be deemed to have been delegated pursuant to this Law. Meanwhile, other laws and regulations in the land sector shall remain in force insofar as they do not conflict with the Agrarian Reform Law. Agrarian conflict resolution, restoration of land rights, land redistribution, and empowerment of agrarian reform subjects that have been completed or are ongoing prior to the entry into force of this Law shall continue and be integrated into the implementation of agrarian reform under this Law. Ministries/institutions, State-Owned Enterprises (“BUMN”), Regional-Owned Enterprises (“BUMD”), and Regional Governments are also required to adjust their regulations, policies, decisions, and relevant Government actions to comply with this Law.

Furthermore, Article 47 provides for the transfer of all duties, functions, powers, programmes, activities, rights, and obligations of the Agrarian Reform Task Force (Gugus Tugas Reforma Agraria), the Agrarian Reform Acceleration Implementation Team (Tim Pelaksana Percepatan Reforma Agraria), and other teams or task forces handling agrarian conflicts and agrarian reform to the Institution following its establishment. The Institution's authority encompasses asset and access reform, agrarian conflict resolution, restoration of land rights, land redistribution, empowerment of agrarian reform subjects, and management of agrarian reform land objects. All ongoing processes relating to agrarian conflict resolution, land redistribution, access reform, monitoring and evaluation, and agrarian reform programmes at the time this Law comes into force shall continue to be implemented by the Institution until completion.

Provisions having a direct impact on plantation businesses are stipulated in Article 48, which requires holders of Cultivation Rights (Hak Guna Usaha or “HGU”) and holders of plantation business licences to surrender at least 20% of the area of the HGU land parcel. Further provisions concerning the obligation to surrender such land shall be regulated by Presidential Regulation. Accordingly, the regulations governing the mechanism for implementing the land surrender obligation are still awaiting implementing provisions.

Closing

The Agrarian Reform Law establishes a new legal framework for regulating the control, ownership, use, and utilisation of land in Indonesia. The establishment of an Institution directly accountable to the President, its binding authority to resolve agrarian conflicts, and the provisions concerning the restoration of rights, land redistribution, and beneficiary empowerment constitute the principal instruments for addressing disparities in land control and strengthening the protection of community rights.

For businesses, this Law entails several implications that warrant attention, particularly in relation to the potential designation of land under their possession or use as agrarian reform objects, the obligation to relinquish assets or forest areas, the obligation to surrender at least 20% of the area of HGU land parcels, and restrictions on the control and transfer of land acquired through agrarian reform. The Institution's authority to temporarily suspend land administration and business licensing processes in respect of objects subject to conflict may also affect the legal certainty and continuity of land-based business activities. Furthermore, the threat of criminal sanctions against parties obstructing the implementation of agrarian reform or possessing agrarian reform land objects without a valid legal basis requires due consideration.

Businesses, particularly those operating in the plantation, forestry, and land-based industrial sectors, should review the legal status, history of possession, licensing, and potential land overlaps relating to the land they own or manage. The issuance of Presidential Regulations and Government Regulations as implementing regulations, including those concerning the establishment of the Institution, maximum limits on land control, and the mechanism for surrendering 20% of HGU land, should also be closely monitored, as these regulations will determine the further implementation of the Agrarian Reform Law.