KEPAL Submits Final Arguments in Job Creation Law Review, Raising Concerns Over Land Bank and Farmers’ Rights

Palm Oil Magazine
KEPAL and several civil society organizations have submitted their final arguments in a judicial review of Indonesia's Job Creation Law, urging the Constitutional Court to overturn provisions on the Land Bank, land acquisition, and agriculture that they argue threaten farmers' rights and agrarian reform. Photo: Special

PALMOILMAGAZINE, JAKARTA – The Committee for the Defense of Constitutional Rights (KEPAL), through its Omnibus Law Legal Advocacy Team, has submitted its final arguments to Indonesia’s Constitutional Court in three judicial review petitions challenging Law No. 6 of 2023 on Job Creation. The submission marks the conclusion of court proceedings before the justices begin deliberations.

According to an official statement received by Palmoilmagazine.com on Saturday, July 11, 2026, the three cases challenge key provisions of the Job Creation Law that petitioners argue affect agrarian reform, agriculture, food security, land acquisition, and constitutional protections for farmers and local communities.

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One petition contests provisions previously ruled unconstitutional by the Constitutional Court, including rules on government permits for smallholder seed distribution, foreign investment in horticulture, water resource management, sanctions affecting people living in forest areas, and agrarian reform through the Land Bank Agency.

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Another petition focuses on agriculture and food policies, including concerns over farmland conversion under National Strategic Projects (PSNs) and provisions that critics say could expand food imports.

A third petition challenges regulations governing land acquisition, the expanded definition of ‘public interest,’ compensation mechanisms, Land Management Rights (HPL), and the authority of the Land Bank, which petitioners argue could increase land concentration in the hands of investors.

KEPAL said the government and its expert witnesses failed to adequately address the petitioners’ constitutional concerns during the hearings, arguing that official explanations largely defended existing policies without demonstrating how they safeguard citizens’ rights to land and livelihoods.

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The coalition also questioned the government’s description of the Land Bank as operating under a corporate model, saying this reinforces concerns that investment interests could take precedence over agrarian reform.

The Agrarian Reform Consortium (KPA) said the hearings exposed fundamental weaknesses in the Job Creation Law and urged the Constitutional Court to issue a ruling that strengthens constitutional protections for farmers and agrarian rights. KPA also argued that the Land Management Rights framework under the Land Bank is inconsistent with Indonesia’s 1960 Basic Agrarian Law and cited at least eight agrarian conflicts linked to Land Bank land claims over the past two years.

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Other civil society organizations, including the Indonesia Human Rights Committee for Social Justice (IHCS), Bina Desa, and Indonesia for Global Justice (IGJ), urged the Constitutional Court to uphold constitutional safeguards. They argued that the law prioritizes investment over the rights of farmers, fishers, Indigenous Peoples, and rural communities, and called for the annulment of provisions they believe conflict with the 1945 Constitution. (P2)


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