Government Regulation Number 48 of 2025 Regulates the Control of Abandoned Land, Can Be Taken Over by the State

Introduction

On 6 November 2025, the Government issued Government Regulation Number 48 of 2025 on the Control of Abandoned Areas and Abandoned Land (“GR 48/2025”), which took effect on that date. This Regulation is issued to ensure that land, as a fundamental asset for development, is genuinely cultivated, used, and utilized to the greatest extent possible for the prosperity of the people, and is not left in an abandoned condition even though it has been granted rights or permits.

GR 48/2025 is established in view of the fact that there remains a significant amount of land that is controlled or owned, whether already certificated or newly acquired, but is intentionally not cultivated or is abandoned. Such conditions hinder the achievement of development programs, food security, and national economic resilience.

 

Comparison

The Government revokes and replaces Government Regulation Number 20 of 2021 on the Control of Abandoned Areas and Abandoned Land (“GR 20/2021”), which is considered ineffective in addressing issues related to the control and utilization of abandoned land. The following table highlights the differences between GR 48/2025 and GR 20/2021:

 

Key Provisions

Obligation to Utilize Land and Areas

Every Holder of a Permit, Concession, Business License, or Holder of Land Rights is required to cultivate, use, and utilize the land or area under its control. Pursuant to Article 2 paragraph (2) and Article 3 paragraph (3), such holders are also required to periodically report the cultivation and utilization of their land to the relevant authorities. Any violation of these obligations constitutes the primary basis for the Government to designate an area as an object of control.

Criteria and Objects of Control

The Government classifies objects of control into two main categories, namely Abandoned Areas and Abandoned Land. Based on Article 4 paragraph (1), Abandoned Areas include mining, plantation, industrial, tourism, or residential areas whose business permits are intentionally not utilized. Meanwhile, Article 6 stipulates that Abandoned Land includes land held under ownership rights, building use rights (Hak Guna Bangunan/HGB), cultivation rights (Hak Guna Usaha/HGU), use rights, and Management Rights that are intentionally not maintained or utilized for at least 2 (two) years from the issuance of the relevant right. Specifically for land under ownership rights, Article 6 paragraph (2) provides an exception whereby such land becomes an object of control only if:

1. It is occupied by the community and constitutes a settlement area;
2. It is continuously controlled by another party for 20 years without any legal relationship with the right holder; or
3. The social function of land rights is not fulfilled.

Procedure for the Control of Abandoned Areas

The process for controlling an area begins with an evaluation. Under Article 15 paragraph (4), the evaluation is conducted within a period of 60 calendar days. If abandonment is established, the Head of the Relevant Institution shall issue Warning Letters in stages as follows:

1. First Warning: Valid for 30 calendar days;
2. Second Warning: Valid for 30 calendar days;
3. Third Warning: Valid for 30 calendar days.

If the third warning is not complied with, as emphasized in Article 19, the area shall be designated as an Abandoned Area, resulting in the revocation of the relevant permit or concession.

Procedure for the Control of Abandoned Land

Pursuant to Article 23 paragraph (4), the evaluation of abandoned land is conducted within only 12 (twelve) calendar days. If abandonment is identified, the Head of the Regional Office shall issue warnings with time limits as stipulated in Article 25, as follows:

1. First Warning: Must be complied with within 14 calendar days;
2. Second Warning: Must be complied with within 14 calendar days;
3. Third Warning: Must be complied with within 14 calendar days.

If the third warning is ignored, Article 27 mandates the Head of the Regional Office to propose the designation of the land as Abandoned Land to the Minister within a maximum period of 6 days.

Legal Consequences of the Designation of Abandoned Land

The designation of land as Abandoned Land results in legal consequences for the right holder. Based on Article 30 paragraph (1), such designation leads to the termination of Land Rights or Management Rights, the severance of the legal relationship, and the confirmation of the land as a state asset. Furthermore, Article 32 paragraph (1) obliges the former right holder to vacate the land no later than 30 calendar days from the date of designation. If the land is not vacated, any objects on the land shall be deemed abandoned assets.

Utilization of Assets Originating from Former Abandoned Land

The State shall take over land that has been subjected to control measures. Pursuant to Article 40 paragraph (1), the utilization of the State General Reserve Land (Tanah Cadangan Umum Negara/“TCUN”) originating from abandoned land is designated for:

1. Agrarian reform;
2. National strategic projects;
3. Land Bank;
4. Other state reserves; and
5. Specific interests as determined by the Minister.

Transitional Provisions

Pursuant to Article 46, the results of the inventory of land indicated as abandoned that existed prior to 6 November 2025 must be followed up in accordance with the provisions of GR 48/2025. Furthermore, based on Article 47, with respect to objects of control of Abandoned Land that have not yet been proposed or have already been proposed for designation as Abandoned Land prior to 6 November 2025, the control process of Abandoned Land shall be continued in accordance with the provisions of GR 48/2025.

In addition, Article 48 stipulates that for objects of control whose term of rights has expired and which have been proposed as Abandoned Land prior to 6 November 2025, the process shall be continued through the designation of Abandoned Land and the utilization of TCUN in accordance with GR 48/2025.

 

Closing

GR 48/2025 accelerates land optimization by replacing GR 20/2021, which is considered ineffective. Through this regulation, the Government shortens the duration of control warnings to 14 days and the evaluation period to 12 days, whereby land that is proven to be abandoned will have its legal relationship terminated, be taken over as a state asset, and be reutilized for public interests such as agrarian reform and national strategic projects.