Indonesia’s ‘2 Year Rule’: What Happens to Abandoned Land?

In recent years, the Indonesian government has placed increasing emphasis on efficient land use and agrarian reform. As part of this initiative, the so-called “2 Year Rule” was introduced, which allows the state to reclaim land that has not been used for its intended purpose for two consecutive years.

Legal Basis and Regulations

The regulatory framework is built on two main legal instruments:

• Government Regulation No. 20/2021, and
• MOAA Regulation No. 20/2021

These define when and under what conditions the Ministry of Agrarian Affairs (MOAA) can classify a plot of land as “abandoned.” The ministry is authorized to monitor, evaluate, and take into state ownership land deemed abandoned – including privately owned land and land subject to permits (e.g., industrial or agricultural).

The Process Steps

1. Survey and Inventory

The government monitors land use and collects data on owners and actual activities.

2. Assessment

Document review and on-site inspections are conducted, which can take up to 180 days.

3. Warnings

If the land is not being used, authorities issue three levels of written notices:

• First warning: 90-day deadline
• Second: additional 45 days
• Third: final 30-day grace period

4. Official Decision

If the owner still does not take action, the land is classified as “abandoned” and may be taken into state ownership.

Exceptional Cases

The rule does not apply in all situations. Exceptions include:

• land with disputed ownership
• areas affected by natural disasters
• conservation areas or land with special status

Consequences and Objectives

Land classified as “abandoned” may be transferred to state ownership and then used for agrarian reform, infrastructure development, or public interest projects.

The government’s goal is not punishment, but rather to encourage land use and better utilize national resources. The process is not automatic – every case involves official investigation, evidence gathering, and multiple warnings before state takeover.

Summary

The “2 Year Rule” is an important element of Indonesia’s land policy, aimed at reactivating abandoned and underutilized land. While it involves strict procedures, its transparent mechanism ensures that owners receive multiple opportunities to remedy the situation before the land is permanently transferred to state ownership.