Agrarian Reform Bill to Impose Cumulative Limits on Land Control and Ownership

Bill on Agrarian Reform (“Agrarian Reform Bill”) will impose cumulative limits on the control and ownership of land by corporations. Bob Hasan, Chairman of the Legislation Body (“Baleg”) of Indonesia’s House of Representatives (“DPR RI”), said that the provision is intended to reduce disparities in land control and ownership in Indonesia.

“The restriction is necessary to ensure that plantation lands are no longer controlled by only a handful of parties,” he told Hukumonline.

Based on the working committee meeting of the DPR RI, the provisions on restrictions on land control and ownership are set out in Article 49 of Agrarian Reform Bill. The article provides that restrictions on the control, ownership, utilization, and use of land shall apply to a single business entity and/or affiliated business entities, whether in the form of land rights or business licensing.

Furthermore, the calculation of the limits on land control and ownership will use the Gini ratio for land control as the basis, with the Government being mandated to measure the success of agrarian reform. According to Bob, these limits will be further regulated in regulation of the government.

Bob said that the provision is intended to prevent excessive concentration of land in the hands of a particular entity, thereby ensuring that the implementation of agrarian reform can promote social justice in the distribution of land assets among the public. “In essence, the Bill is primarily aimed at promoting public welfare,” he said.