Government Plans to Revise Land Reform Policy and Review Absentee Land Ownership Rules

The Government is planning to revise its landreform policy by amending Government Regulation in Lieu of Law No. 56 of 1960 on the Determination of Agricultural Land Size (“Perppu 56/1960”) and Government Regulation No. 224 of 1961 on the Implementation of Land Distribution and Compensation, as amended by Government Regulation No. 41 of 1964 (collectively referred to as “PP 224/1961”).

Sugama Putra, Head of the Sub-Directorate for the Control of Land Tenure and Ownership at the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (“ATR/BPN”), stated that the proposed revisions are intended to align the regulatory framework with present-day developments.

According to Sugama, several provisions of the existing regulations are no longer relevant. He cited the rules on absentee land ownership as an example, explaining that they should be reassessed in light of advances in technology and infrastructure, which have made it significantly easier for landowners to access and manage land located outside their place of domicile. 

"The circumstances of the past differ from today's realities. This issue needs to be reviewed further, particularly because improvements in infrastructure have made access much easier," he said.

In addition, Sugama explained that the revisions are intended to strengthen law enforcement against violations involving agricultural land. He observed that the sanctions currently prescribed under the two regulations are insufficient to ensure compliance and to create a meaningful deterrent effect. Among the violations identified are land ownership exceeding the statutory maximum area, the conversion of agricultural land without following the prescribed legal procedures, and land control that is inconsistent with the owner's registered domicile.

"The regulation of land ownership limits has also not been fully effective, largely because the legal framework governing agricultural land has been in place for a very long time," he said.

Sugama further noted that the proposed amendments are designed to reinforce the legal enforcement framework by ensuring that every parcel of land has a clear legal status, strengthening the protection of land rights, and realizing social justice in land ownership.