Is Squatting Legal in Indonesia After the 2026 Policy Reforms?

No, squatting in Indonesia is illegal under the 2026 Agrarian Law amendments, which criminalize unauthorized land occupation with penalties up to 10 years imprisonment and fines of IDR 1 billion. The National Land Agency (BPN) enforces evictions within 30 days of notice, while local governments may impose administrative sanctions. Civil remedies under the 1960 Basic Agrarian Law prioritize land rights holders, requiring squatters to vacate even if occupying idle state land.

Key Regulations for Squatting in Indonesia

  • Criminalization under Article 106 of the 2026 Agrarian Law: Unauthorized occupation of land designated for agriculture, housing, or infrastructure triggers felony charges, with mandatory eviction orders.
  • BPN Enforcement Protocol: The agency conducts cadastral verification within 14 days of a complaint, followed by court-ordered evictions if squatting persists beyond the 30-day notice period.
  • Local Government Discretion: Municipalities may impose additional penalties, including demolition of structures, under Regional Regulation No. 12/2023 on Land Use Compliance.

Recent judicial precedents (e.g., PT Perkebunan Nusantara v. Squatters, 2025) reinforce that even temporary occupation of state-owned land—including abandoned plantations—constitutes trespass, barring claims of adverse possession. Exceptions exist solely for indigenous communities with ancestral land rights recognized under the 2022 Indigenous Peoples Law, provided they hold formal adat documentation. Non-compliance risks immediate forcible removal under Law No. 1/2023 on Job Creation, which streamlines eviction processes for “strategic projects.”