Indonesia has taken a significant step toward restructuring the legal framework governing land ownership, control and agrarian disputes.
On 22 September 2026, the Indonesian House of Representatives (DPR RI) approved the Bill on Agrarian Reform Regulation (Rancangan Undang-Undang Pengaturan Reforma Agraria) to become law. The legislation was approved during a plenary session after agreement between the government and the DPR.
The new law is significant because it goes beyond the traditional concept of land redistribution. It addresses the broader structure of land control and ownership, agrarian conflicts, restoration of rights, customary land, concentration of land ownership, and institutional mechanisms for implementing agrarian reform.
For landowners, companies, investors, heirs and parties involved in land disputes, the new framework deserves careful attention.
- Agrarian Reform Is More Than Land Redistribution
Agrarian reform is sometimes understood simply as a government programme to redistribute land.The new framework takes a broader approach. It addresses the relationship between:
- land control;
- land ownership;
- land use and utilisation;
- redistribution;
- restoration of rights;
- agrarian conflict resolution;
- customary or communal land;
- and the prevention of excessive reconcentration of land.
The DPR has described the legislation as a structural reform intended not only to redistribute land but also to address the structure and governance of land ownership and control.
This distinction matters. The legal question in an agrarian dispute may therefore extend beyond:
“Who holds the land certificate?” It may also involve:
“How was the land acquired, how has it historically been controlled, whether competing rights exist, and whether the land falls within the framework of agrarian reform?”
That does not mean that an existing land certificate is automatically invalidated. Rather, the new framework provides additional mechanisms through which certain historical and structural land conflicts may be addressed.
- Restoration of Land Rights May Become More Important
One of the most significant aspects of the new framework is the emphasis on the restoration of rights. Depending on the circumstances, restoration may involve mechanisms such as restitution, restoration of legal status, replacement land, or redistribution. This is particularly relevant where a dispute involves a long history of land control rather than a straightforward disagreement between two current certificate holders.
For example, a dispute may involve:
- historical occupation of land;
- subsequent government or corporate control;
- changes in land status;
- competing administrative records;
- customary land claims;
- or historical dispossession.
In such cases, the legal analysis may need to consider not only the present certificate but also the historical chain of rights and the circumstances in which the land changed hands.
However, restoration of rights should not be understood as an automatic right to recover any land previously occupied or claimed. Evidence, legal status, administrative records, third-party rights and the specific provisions of the new law will remain critical.
- Existing Land Certificates Are Not Automatically Cancelled
This is an important point for landowners and investors. The enactment of the Agrarian Reform Law does not mean that every existing land certificate becomes vulnerable simply because the new law has entered the legal framework.
A lawyer should distinguish between at least four situations.
First, a valid certificate obtained through a lawful process.
Second, a certificate potentially affected by an administrative defect.
Third, land that is the subject of a historical or structural agrarian conflict.
Fourth, land that falls within a designated or otherwise relevant agrarian reform programme.
Each situation requires a different legal analysis.
Therefore, a landowner should not assume that the new law automatically threatens an existing title. Equally, an investor should not assume that a certificate alone resolves every potential historical or agrarian risk.
- Customary and Communal Land
The new framework also has important implications for communities asserting customary or communal land rights.
This is particularly relevant in Indonesia because land disputes may involve the interaction between state land, private rights, corporate concessions and customary claims.
In a customary-land dispute, a proper legal review may therefore need to examine:
- the existence and recognition of the relevant customary community;
- historical occupation and use;
- customary boundaries;
- previous releases or transfers;
- government decisions;
- certificates or concessions issued over the land;
- and the current legal status of the land.
The new agrarian reform framework may become particularly relevant where a dispute has a historical dimension and involves the restoration or recognition of rights.
- Companies and Land Concentration
The new law is also relevant to corporate landholding.
One of the stated objectives is to prevent land that has been redistributed or otherwise brought within agrarian reform from becoming concentrated again in the hands of particular parties. The DPR has specifically highlighted the prevention of reconcentration of land ownership.
This raises an important corporate-law question:
Should land ownership always be analysed company by company? Not necessarily.
For sophisticated land due diligence, lawyers may increasingly need to examine:
- affiliated companies;
- common control;
- corporate groups;
- beneficial ownership;
- related-party transactions;
- transfers between affiliated entities;
- and the overall structure of land ownership.
In other words, the legal analysis may need to move beyond the name appearing on a certificate and examine the wider ownership and control structure. For businesses holding significant land assets, this makes corporate and land due diligence increasingly interconnected.
- Agrarian Reform and State-Owned Assets
Another complex area concerns land connected to the State or State-owned enterprises.
Agrarian reform may intersect with:
- State land;
- State-owned assets;
- BUMN assets;
- land concessions;
- and other forms of government-controlled land.
The legislative discussion itself identified the need to address situations where claims for restoration of rights intersect with the legal regime governing State assets and BUMN assets.
This means that a land dispute involving a State entity should not be approached as an ordinary private land dispute. A proper assessment may require simultaneous consideration of:
land law + administrative law + State asset law + corporate law + litigation procedure.
- What About Inherited Land?
The new law does not replace Indonesia’s inheritance law.
A dispute between heirs over inherited land remains fundamentally a question of succession, ownership and land registration. However, an inheritance dispute may also contain an agrarian dimension. For example: A family has historically controlled a parcel of land. One heir later registers or transfers the land in his or her own name, while other heirs claim that the land formed part of the family estate.
The primary issues may involve inheritance rights, ownership and the validity of the transfer. But if the underlying history also involves customary land, State acquisition, redistribution, or a broader structural agrarian conflict, the new Agrarian Reform Law may become relevant as an additional legal framework. This is why land disputes should be analysed according to their full legal history, rather than by looking only at the latest certificate.
- A New Institutional Framework
The legislation also strengthens the institutional architecture for implementing agrarian reform. The legislative process contemplated a dedicated institution for agrarian reform, with responsibility for planning, implementation, supervision and the resolution of agrarian conflicts.
This is significant because Indonesian land disputes frequently cross institutional boundaries.
A single dispute may involve:
- the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN);
- local government;
- forestry authorities;
- plantation authorities;
- State-owned enterprises;
- private companies;
- customary communities;
- and the courts.
The effectiveness of the new framework will therefore depend not only on the statutory provisions themselves, but also on their implementing regulations and the way the new institutional mechanisms interact with existing administrative and judicial remedies.
- What Does This Mean for Foreign Investors?
Foreign investors should not interpret the new law simply as a restriction on foreign investment. The more immediate practical issue is land due diligence. Before acquiring or investing in a business connected to Indonesian land, investors should consider more than the existence of a certificate. A comprehensive review may need to examine:
Title and registration- Who holds the registered right, and what type of land right is involved?
Historical ownership – How was the land acquired and what happened before the current title was issued?
Corporate structure – Are there affiliated entities holding adjoining or related parcels?
Land use- Is the actual use of the land consistent with the applicable rights, permits and spatial planning?
Disputes – Are there existing claims by individuals, communities, heirs or customary groups?
Government involvement – Is the land connected to State assets, concessions or government programmes?
Agrarian reform exposure- Could the land fall within an agrarian reform programme or be affected by an existing agrarian conflict?
For investors, these questions can be considerably more important than simply asking whether a certificate exists.
- What Landowners and Companies Should Do Now
The practical implications of the new law will become clearer as the implementing regulations are issued and the relevant institutions begin applying the framework.
In the meantime, landowners and companies with significant land interests should consider reviewing their existing documentation.
A useful preliminary land-risk review should include:
- Certificate and land-right verification.
- Historical ownership and acquisition documents.
- Corporate ownership and affiliation structure.
- Land-use and spatial-planning compliance.
- Existing or potential disputes.
- Claims by heirs or customary communities.
- Government or BUMN involvement.
- Previous transfers, releases or acquisitions.
- Existing litigation or administrative proceedings.
- Potential exposure to agrarian reform programmes.
For businesses holding substantial land assets, this is also an opportunity to review whether their current corporate structure and land portfolio remain appropriate under the developing regulatory framework.
Conclusion
Indonesia’s new Agrarian Reform Law represents a significant development in the country’s land-law landscape.
Its importance lies not simply in the redistribution of land, but in its broader attempt to address the structure of land ownership and control, restoration of rights, agrarian conflicts, customary land and the prevention of reconcentration.
For landowners, investors, companies and families involved in land disputes, the central lesson is straightforward:
Land ownership should be analysed not only by looking at the present title, but by understanding the legal history, ownership structure and circumstances surrounding the land.
As the new law moves from legislation into implementation, its interaction with existing land, corporate, inheritance, administrative and litigation frameworks will be particularly important.
At Sigma Law Firm, we assist clients with Indonesian land disputes, corporate and commercial matters, legal due diligence and complex litigation involving Indonesian assets.
For advice on a specific land dispute or investment, a review of the underlying documents and land history is essential before determining the appropriate legal strategy.