Indonesia passes Agrarian Reform Law amid land dispute concerns

Indonesia's House of Representatives (DPR) passed the Agrarian Reform Regulation Law on September 22, 2026. The legislation aims to resolve long-standing land disputes, redistribute land, and curb land concentration through a new framework and a specialized national oversight body.

The law has introduced regulatory uncertainty for Malaysian plantation companies with significant investments in Indonesia. Analysts note that while the law addresses land ownership limits and conflict resolution mechanisms, the specific impact on corporate performance remains unclear until implementing regulations and derivative rules are established.

Civil society groups, including the Agrarian Reform Consortium (KPA), have expressed concerns regarding the final draft. Critics argue the law may limit effective land redistribution, make it difficult to challenge state-controlled land, and potentially expose certain land occupants to criminal charges. Data from the KPA indicates that between 2015 and 2024, approximately 3,234 agrarian conflicts affected 7.4 million hectares and 1.8 million households.