Government Regulation on the Conversion of Agricultural Land to Ensure Food Supply Security

Government Regulation No. 1 of 2011 on Designation and Conversion of Agricultural Land for Food Security (‘Regulation’) has been issued to further implement Articles 26 and 53 of Law No. 41 of 2009 on Protection of Agricultural Land for Food Security. The Regulation is one of 8 implementing regulations mandated by Law No. 41 of 2009, which aims to ensure the availability of and to control the conversion of agricultural land so as to ensure food security, and to improve the agriculture business, particularly for farmers. 

Agricultural Land for Food Security is defined as agricultural land, which is designated to be consistently protected and developed to produce staple foods for the purpose of national food security, self-production, and food sovereignty (Article 1 (3) of Law No. 41 of 2009).

The designation of agricultural land for food security covers designation of agricultural areas, land, and land reservation. Articles 11 through 16 provide details on the procedures for the designation of agricultural areas. First, to be designated as an agricultural area for food security, certain criteria and requirements have to be fulfilled. The Minister of Agriculture will propose an area to be designated as agricultural area for food security to the President (in coordination with the Minister of Public Works in relation to spatial planning). In the event that the agricultural area for food security needs special protection, such an area could be further designated as a national strategic area, in which case its spatial planning will be prioritized due to its national impact on state sovereignty, security, economy, society, culture and/or environment.

Articles 20 though 26 provide details on the criteria, requirements, and procedures for the designation of agricultural land for food security. The Regulation also provides procedures on designation of land reserves for food security, which are derived from neglected land and/or former forest areas, which have been relinquished pursuant to the prevailing laws and regulations. Articles 27 through 34 provide further details on land reserves, including the designation criteria, requirements, and procedures. The technical details of the criteria and requirements for designation of agricultural areas, land, and land reserves for food security will be further governed by upcoming ministerial regulation.

Furthermore, the Regulation also contains provisions on conversion from agricultural land for food security to non-agricultural land. The conversion can only be performed by the government, and only for a limited number of reasons, which are: land procurement for public purposes (for instance: public roads, dams, irrigation, drainage and sanitation, airports and railways, and power plants) or the occurrence of a natural disaster (Articles 35 and 36).

Articles 39 though 50 set out the requirements and procedures for the conversion of agricultural land. It should be noted that the conversion of agricultural land has to be followed by the provision of a replacement agricultural area, and compensation to the landowner, which includes compensation of the infrastructure investment value.

The Regulation has been in force since 5 January 2011.