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Agrarian Reform

By October 30, 2018 No Comments

Agrarian reform is a restructuring of the structure of control, ownership, use and utilization of land through asset and access arrangement for the prosperity of the Indonesian, conducted by the central and local government (“Agrarian Reform”). Under the President Regulation Number 19 of 2018 (“Perpres No. 19/2018”), Agrarian Reform aims to (i) reduce inequality in land controlling and ownership, (ii) handle the agrarian conflicts, (iii) create agrarian-based sources of prosperity and society welfare, (iv) create job field (v) improve the public access to economic resources, (vi) increase food security and sovereignty and (vii) improve and maintain the quality of life.

Implementation of Agrarian Reform

The implementation of Agrarian Reform is conducted on the object of Agrarian Reform land (“Land Object”), namely land controlled by the state and/or owned by the society. The implementation stages of Agrarian Reform are (i) planning stage and (ii) implementation stage.

Planning Stage

Planning stage includes (i) asset arrangement of control and ownership of Land Object, (ii) access arrangement of use, utilization and production of Land Object, (iii) planning for legal certainty and legalization of Land Object, (iv) planning land dispute handling and conflict of Land Object and (v) planning other activities that support the Agrarian Reform. Agrarian Reform planning becomes a reference for work plans and budgets of ministry/institution, and local development plans.

Implementation Stage

Implementation stage includes asset arrangement and access arrangement, where asset arrangement as the basis for access arrangement. Asset arrangement is conducted through land redistribution and asset legalization.

Asset Arrangement

Land RedistributionObject of Land Object is redistributed as follows:

  • right to cultivate (“HGU”) and right to build (“HGB”) which has expired and not extended or renewed within 1 (one) year.
  • land with an area at least 20% of HGU land which is converted to HGB, due to the obligation of HGU holder in relation to changes of spatial plan allocation.
  • land with an area at least 20% of state land given to the HGU holder.
  • land that is relinquished from forest area controlled by society based on the regulation.
  • state land that has been abandoned.
  • land resulting from dispute resolution and agrarian conflict.
  • ex-mining land outside the forest area.
  • tanah timbul (aanslibbing).
  • land granted by company to society regarding their corporate social responsibility, land resulting consolidation, donating land as the substitution of consolidation and state land which controlled by society.
  • ex-erpacht, partikelir and eigendom land with an area more than 10 bauw.
  • maximum excess land, absentee land and autonomy or ex-autonomy land.

Land Redistribution is determined for (i) agriculture with maximum area 5 hectare and given the Certificate of Right of Ownership (“SHM”) or joint ownership rights, and (ii) non-agriculture, which given by SHM or Certificate of Right of Ownership on Condominium Unit (“SHMSRS”).

Determination of Land Object redistribution must be in accordance with land capability, land suitability and spatial plan. Changes to the use and utilization of Land Object redistribution are possible as long as having obtained the permit from Minister of Agrarian and Spatial Plan/Head of National Land Agency (“Minister”).

Land redistribution may be given to an (i) individual, (ii) community with joint operation right, and (iii) legal entity, which complies with the criteria.

Asset Legalization

Object of asset legalization includes:

  • transmigration land that has not been certificated, which is not included in the forest area or has been given with management rights for transmigration; and
  • land owned by the society.

Asset legalization may be given to (i) an individual with certification of transmigration land or certification of land owned by the society, and (ii) community with joint ownership rights and legal entity, with certification of land owned by the society.

Access Arrangement

Access arrangement aims to increase the economic scale and to encourage the society entrepreneur, conducted by (i) direct assistance by the government, (ii) partnership between society which has the SHM and legal entity, and/or (iii) capital participation between society which has the joint ownership rights with the legal entity.

Access arrangement includes the activities as follows:

  • social mapping to find out the potential, problem and opportunity of the society.
  • increase institutional capacity by forming groups based on the type of business.
  • business assistance through partnership.
  • skills improvement by (i) counseling, (ii) education, (iii) training, and/or (iv) technical guidance.
  • the use of appropriate technology by collaborating with university, business entity, research institutions and ministry or local governments.
  • business diversification.
  • facilitation of capital access carried out by financial institutions, cooperation (koperasi) or business entity through social environmental responsibility, by way of lending.
  • facilitation of access to marketing by accommodating and distributing business results.
  • strengthening database and commodity information for supervision.

Handling Agrarian Conflict

Handling of agrarian conflict is conducted with legal certainty and social justice principles, by involving:

  • individuals.
  • individual/group and legal entity.
  • individual/group and institution.
  • legal entity and legal entity.
  • legal entity and institution.
  • institution and institution.

Handling of dispute and agrarian conflict will be facilitated by the Agrarian Reform task force, which will be regulated in regulation of Minister.


Adrian Fernando Simangunsong