11 Aug 2025
2-Year Rule and Abandoned Land: Authority, Process, and Consequences

Public Spotlight on Abandoned Land Takeover

On 13 July 2025, Mr. Nusron Wahid, the Minister of Agrarian Affairs and Spatial Planning/Head of Land Agency (“MOAA”) made a public statement asserting that the government has the authority to reclaim land from the landowners if such land has remained unutilized for 2 consecutive years, thereby classifying it as abandoned land. He further stated that out of approximately 55.9 million hectares of certificated land in Indonesia, around 1.4 million hectares have been identified as abandoned. This announcement has raised widespread public concern, particularly regarding the government’s authority to take over land that is legally certificated or lawfully held. 

While this may appear sudden, the Minister’s statement is firmly grounded in the legal framework established under Government Regulation No. 20 of 2021 on the Control of Abandoned Areas and Land (“GR 20/2021”) and MOAA Regulation No. 20 of 2021 concerning Procedures for Controlling and Utilizing Abandoned Areas and Land (“MOAA Reg. 20/2021”) (the GR 20/2021 and MOAA Reg. 20/2021 hereinafter shall be referred to as the “2021 Regulations”), both of which have been in force for over 4 years. 

1. Authority

    

   The government’s authority to identify and take over abandoned land is firmly rooted in Indonesia’s land law framework. Articles 27 and 34 of Law No. 5 of 1960 on Basic Agrarian Principles (commonly referred to as the Undang-Undang Pokok Agraria or UUPA) provide that land title may be extinguished if the land is no longer used in accordance with its nature, purpose, or social function. These foundational provisions were further operationalized through the issuance of GR 20/2021 and MOAA Reg. 20/2021.

    

   Under these regulations, MOAA is authorized to:

• monitor and evaluate land and areas suspected for abandonment;

• designate such land as abandoned after following a formal, multi-step process; and

• revert the land to State control, potentially reallocating it through agrarian reform, public interest projects, or the national land bank.

Importantly, this authority applies not only to certificated land, but also to land held under control instruments such as auction deeds or forest release decrees (dasar penguasaan atas tanah or “DPAT”) and non-forest areas which have not been attached with land titles. The 2021 Regulations establish a clear legal basis for State intervention, while also embedding procedural safeguards to prevent arbitrary enforcement.

2. Process

    

   The 2021 Regulations set out a clear process the government must follow before taking control of Abandoned Area or Land.

    

   Difference between Abandoned Area and Abandoned Land

    

   Before explaining the process, it is important to distinguish between two key terms under the 2021 Regulations.

              *) Note: May include others.

The above illustrates that the so-called “2-Year Rule” merely serves as an initial threshold to indicate potential non-utilization, specifically for certificated land and land held under DPAT. In contrast, for license-based land, no fixed non-utilization period is expressly stated in the 2021 Regulations. In both cases, however, further formal procedures are still required before any land can be officially declared abandoned and revert to the State.

Preconditions for Government Control

Before the government can exercise control over land or areas deemed abandoned, it must first conduct a formal inventory process to identify land or areas that are indicated as abandoned.

The timing of inventory depends on the issuance date of the relevant land title or license:

1. For areas licensed before the enactment of GR 20/2021, the inventory may begin immediately upon the regulation’s entry into force;

2. For areas licensed after the enactment of GR 20/2021, the inventory may begin 2 years after the date of issuance;

3. For land with attached titles (e.g., HM, HGB, HGU, HP, HPL, or DPAT), the inventory may begin at the earliest 2 years from the date of title issuance.

Following this, the MOAA will record, administer, and maintain the inventory results for the purpose of reporting, evaluating, and determining further legal action.

Lands or areas flagged during the inventory process as having met abandonment indicators may then proceed to the formal control process, subject to further evaluation and compliance steps under the 2021 Regulations.

Formal Control of Abandoned Area and Abandoned Land

The formal control process involves three sequential stages: evaluation, written warnings, and formal determination.

Note: The above flow chart shows the minimum approximate time for the process of control over abandoned areas and lands. The actual steps may take longer depending on the internal process of the authorities.

1. Evaluation – The government assesses whether the land or area has indeed been neglected, based on documents, utilization plans, and field verification. This stage must be completed within 180 calendardays. If intentional non-utilization is confirmed, the landowner or license holder is given 180 additional calendar days to begin utilization via a formal notification.

    

2. Written Warnings – If no action is taken, up to three written warnings are issued, with decreasing response periods:

   • For Abandoned Areas: 180 > 90 > 45 calendar days.

   • For Abandoned Lands: 90 > 45 > 30 calendar days.

    

3. Determination – If the land or area remains unused after the third written warning, it may be formally designated as abandoned. In the case of certificated land and DPAT land, the authorized official must submit a proposal for abandonment status to the MOAA within 30 business days. From the moment this proposal is submitted, no legal action (e.g., transfer of title or creation of encumbrances) may be taken over the land.

3. Consequences

    

   Once a parcel of land or area is formally determined as abandoned by MOAA , it becomes subject to State control and the following legal consequences, depending on the type and status of the land.

    

Abandoned Areas

Along with the determination as abandoned:

1. The relevant license, permit, or concession is revoked; and/or

2. The areas are confirmed to be under direct State control;

The government may also: (i) assign the area as part of the national land bank; or (ii) reallocate the area to eligible parties (e.g., through public auction or government projects).

Abandoned Land

Depending on the land’s legal basis and extent of abandonment, the following outcomes may apply:

 Following the determination:

1. The former holder is required to vacate the land within 30 calendar days as of the MOAA decision; and

2. The land may be classified as Tanah Cadangan Umum Negara or TCUN (general reserve land) or included in the land bank for redistribution.

ABNR Commentary

While the recent public statement by the MOAA has drawn attention to the government’s authority to reclaim land, the legal basis for such authority has been clearly established through GR 20/2021 and MOAA Reg. 20/2021, which have been in effect for more than 4 years.

These regulations lay out a structured, multi-stage process to identify, evaluate, and, where appropriate, determine land or areas as abandoned. The process begins only after the government indicates that certain land or area is intentionally not utilized through the parameters set forth under the 2021 Regulations and followed up by formal notifications, a detailed evaluation, sequential warnings, and a final ministerial determination.

Notably, this process is neither immediate nor automatic. It incorporates multiple safeguards to ensure fairness and compliance with due process before any legal consequences take effect.

This gradual approach reflects the government’s commitment to regulatory integrity and procedural fairness and reinforces the constitutional principle that land title must be exercised in accordance with their social function.

As the government continues to monitor land utilization more closely, landowners, license holders, and developers are advised to proactively review their land use obligations and seek legal guidance where necessary to mitigate potential exposure to abandonment claims. 

By partners Nafis Adwani (nadwani@abnrlaw.com), Ayik C. Gunadi (agunadi@abnrlaw.com), foreign counsel Gustaaf Reerink (greerink@abnrlaw.com), senior associate Zefanya Tampubolon (zmerari@abnrlaw.com) and  associate Gladyne Mesepy (gmesepy@abnrlaw.com).

This ABNR News and its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.