Indonesia Moves to Reclaim Abandoned Land, Balancing Development and Community Rights
Indonesia’s government is enacting new regulations aimed at reclaiming land left fallow by developers, a move intended to provide greater certainty for communities and prevent land speculation. The new rules, outlined in Government Regulation (PP) Number 48 of 2025, define “abandoned land” and establish conditions under which the state can exert control, while also carving out key exceptions to protect customary rights and ongoing development projects.
The regulations come as housing developers increasingly utilize strategies to maintain control of land holdings awaiting construction. According to industry representatives, this practice is designed to avoid having land categorized as idle and subsequently seized by the state. Developers commonly employ “land banks” – reserves of land intended for future housing projects – and often collaborate with local communities to maintain these areas in the interim.
“This means that local people are welcome to cultivate the land until the land is used by the developers,” a senior official stated, noting that many developers currently allow communities to use undeveloped land for agriculture, such as growing vegetables.
Defining Abandoned Land and State Control
PP Number 48 of 2025 defines abandoned land as legally held property – including land with ownership rights, building use rights, and business use rights – that is intentionally left uncultivated, unused, unexploited, and/or unmaintained. The regulation outlines specific circumstances under which the state can assert control over such land.
For freehold land, state control is limited to situations where the land has been deliberately left unused for extended periods, specifically if it is:
- Dominated by the community and effectively becomes part of a village territory.
- Continuously controlled by another party for 20 years without any legal basis.
- Fails to fulfill its social function as land rights.
The rules are stricter for other types of land rights. Building use rights (HGB), use rights, and management rights can be subject to enforcement if not actively utilized or maintained within two years of issuance. Similarly, business use rights (HGU) and land obtained through land control mechanisms must be utilized within two years of issuance or creation. These regulations apply to large-scale areas including mining concessions, plantations, industrial zones, tourism developments, and large residential projects.
Exceptions to the Rule: Protecting Key Land Uses
Despite the potentially broad scope of the regulations, PP Number 48 of 2025 includes several key exceptions. Land Management Rights held by customary law communities are explicitly exempt from state control. Additionally, land designated as “Land Bank Assets” – strategic reserves for future development – and land managed by the Batam Concession Agency and the Nusantara Capital Authority (IKN) are also protected.
Crucially, land that has been officially certified and is being used in accordance with its designated purpose will not be subject to seizure. This provision aims to prevent disruption to legitimate economic activity and established land use patterns.
Concerns and Calls for Clarity
While the Indonesian Housing and Settlement Developers Association (Apersi) acknowledges the government’s intent to provide clarity and protect community interests, concerns remain regarding the definition of “abandoned land.” Junaidi Abdilah, General Chair of Apersi, emphasized the need for a clear and acceptable categorization.
“The status of abandoned land must really be in an acceptable category. Don’t just let it be used by unscrupulous people in the field,” Abdilah stated. He further argued that the public has a right to understand precisely what types of land could be classified as abandoned, to prevent potential abuse of the new regulations.
The implementation of PP Number 48 of 2025 will likely be closely watched by developers, landowners, and communities across Indonesia, as the government seeks to balance economic development with the equitable use of land resources.
