The Indonesian government is moving to reclaim unused land, a policy that could open up opportunities for affordable housing development, according to officials. The move comes as the country seeks to address housing shortages and ensure land is used for the benefit of its citizens.
Developers are already taking steps to avoid having their land designated as “neglected” and subject to government seizure, often by allowing local communities to use it for agricultural purposes. This practice helps demonstrate continued land use and prevents classification as abandoned.
Junaidi Abdilah, Chairman of the Indonesian Real Estate Developers Association (Apersi), explained that developers typically maintain “land banks” for future housing projects. “The surrounding community is allowed to cultivate the land until the developers are ready to use it,” he said, according to reports on February 9, 2026.
SCROLL TO CONTINUE WITH CONTENT
The new regulations, outlined in Government Regulation Number 48 of 2025, aim to provide clarity and security for citizens regarding neglected land. Abdilah stressed the importance of a clear definition of what constitutes “neglected land” to prevent arbitrary seizures.
“The status of neglected land must have a category that can be accepted. It shouldn’t just be exploited by unscrupulous individuals in the field,” he stated.
According to the regulation, neglected land includes land rights, management rights, and land obtained through established land control that is intentionally left uncultivated, unused, unutilized, and/or unmaintained. The regulation covers various types of land, including land designated for mining, plantations, industry, tourism, large-scale housing, and other areas developed with permits or concessions.
The rules specify conditions under which privately-owned land can be subject to government intervention, such as if it’s been occupied by the public and become a settlement, continuously occupied by others for 20 years without a legal relationship, or if the social function of the land rights is not fulfilled. Land designated for building rights, usage rights, and management rights can be subject to intervention if not utilized or maintained for at least two years after the rights are granted.
Similarly, land designated for cultivation rights and land obtained through established land control can be subject to intervention if not utilized for at least two years after the rights are granted or established.
Land Exempt from Seizure
The regulation does include exemptions. Land held by customary law communities, land designated as state land assets, land managed by the Batam Authority, and land managed by the Nusantara Capital Authority (IKN) will not be subject to seizure. Land with valid certificates and used in accordance with its designation will likewise be protected.
The new policy underscores the government’s commitment to ensuring land is used productively and for the benefit of the Indonesian people. Housing Minister Maruarar Sirait, also known as Ara, said the government is considering using reclaimed land for housing for low-income residents, according to a statement on February 9, 2026. “We will think about how to use the existing state land for (housing for) MBR,” Ara said.
(abr/das)
