Agrarian Reform Agency, Land Redistribution and Ownership Caps: UU 10/2026
Law Number 10 of 2026 on the Regulation of Agrarian Reform (Undang-Undang Nomor 10 Tahun 2026 tentang Pengaturan Reforma Agraria) was passed with the joint approval of the House of Representatives and the President. President Prabowo Subianto signed it in Jakarta on 30 September 2026, and it was promulgated the same day in State Gazette 2026 Number 144. The law has 52 articles. Article 1 defines agrarian reform as the restructuring of the control, ownership, use and utilisation of agrarian resources, especially land, through asset and access arrangements for the prosperity of the people.
Key Provisions
A new implementing agency. Under Article 10, agrarian reform is carried out by an agency that sits under and answers to the President. Article 11 gives it the task of planning, implementing, and monitoring and evaluating agrarian reform. Its powers under Article 13 include setting priority locations, temporarily halting land administration, business licensing and forest area designation over reform land in agrarian conflict, and issuing binding decisions on conflict settlement, rights restoration, redistribution and empowerment. Article 14 leaves its formation and structure to a Presidential Regulation, and Article 15 requires a supervisory board, also to be set up by Presidential Regulation.
Planning and priority locations. Article 5 requires an agrarian reform roadmap, drawn up by the agency and set by Presidential Regulation. Article 16 sets the criteria for priority locations: inequality of control and ownership, agrarian conflict, abandoned land, poverty, absentee land, and holdings above the legal maximum.
Land that can be redistributed. Article 19(1) lists thirteen sources of reform land. They include state land held in good faith and used continuously for 20 years; community land overlapping with land rights or business licences; holdings beyond the maximum; abandoned land; absentee land; and rights surrendered voluntarily. After the agency designates the land, the relevant ministries, regional governments and state enterprises must release it or remove it from their asset or forest-area records within one year (Article 19(7)). Lawful holders not involved in the conflict are entitled to fair compensation (Article 19(8)).
Who can receive land. Article 22 names three kinds of beneficiaries: individuals, community groups and customary communities. An individual must be an Indonesian citizen, at least 18 years old or married, and resident in the same subdistrict as the land or in a neighbouring subdistrict of the same regency or city. Eligible individuals include landless farmers, farmers holding under 0.5 hectares, farm labourers, women without access to land, and small fishers with vessels of up to 60 gross tonnes.
Duties of beneficiaries. Beneficiaries must use the land actively and keep it fertile (Article 26). If land is left unused for two consecutive years, the agency issues a written warning; if it is still unused one year later, the right is revoked and may be given to another party (Article 27).
Rights granted. Article 33(1) allows ownership rights, building rights, use rights, commercial cultivation rights, customary or shared ownership rights, or other rights under the law. Under Article 33(7), certificates cannot be issued in forest areas that already hold a social forestry approval or customary forest status.
Protection and prevention. Article 35(1) provides that beneficiaries, community companions and any person defending their land rights cannot be prosecuted under criminal or civil law. Article 35(2) obliges the Government to prevent new conflicts, including by applying free, prior and informed consent and prohibiting violence and intimidation. Article 36(4) bars transfers of reform land that would concentrate holdings.
Ownership caps. Article 37 requires the Government to set minimum and maximum land holdings, including a cumulative cap for one business entity and its affiliates; state-owned and regional enterprises and cooperatives are exempt from that cap (Article 37(5)). The limits aim to cut the land Gini ratio to 0.30 (Article 37(7)). A single parcel covering a whole small island, or directly bordering the coastline, cannot be granted as one right to one person or legal entity (Article 37(8)).
Reporting and Criminal Provisions
The agency reports to the President and the House at least once a year, within three months after the fiscal year ends, and must publish its reports (Article 39). Falsifying documents or maps to influence designations carries up to four years in prison or a category IV fine (Article 41(1)). An official who unlawfully issues decisions that transfer reform land to a party not entitled to it faces up to seven years or a category V fine (Article 42). Continuing to occupy designated land without a valid basis carries up to four years (Article 44).
Transitional and Closing Provisions
Ministries exercising agrarian reform powers must delegate them to the agency within one year; after that, the powers are deemed delegated (Article 46). When the agency is formed, the functions of the Agrarian Reform Task Force and other reform bodies pass to it (Article 47). Holders of commercial cultivation rights and plantation business permits must surrender at least 20 percent of the area of the land held under commercial cultivation rights (Article 48). Implementing regulations are due within one year of promulgation (Article 49(1)), and the law does not apply retroactively (Article 51).
Read the official text of UU 10/2026 in the BPK legal database.
Checked against the official text of UU 10/2026 on 8 November 2026. This is not legal advice; report corrections to contact@crpg.id.
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