Overview

Indonesia originally enshrined its long-standing commitment to agrarian reform through the specific principles that were set out under Law No. 5 of 1960 on Basic Agrarian Principles (“Law 5/1960”), which states that any individuals or legal entities that hold rights over agricultural land must actively utilize or cultivate said land themselves.^[1] The implementation of this active utilization principle was subsequently manifested through determinations of the minimum and/or maximum land areas that are permitted in relation to certain types of land rights, as well as a prohibition on any land ownership that exceeds the established limits.^[2]