Land that has been purchased, controlled under an agreement, or even covered by a land-right certificate cannot necessarily be used for housing, warehousing, commercial development, or other non-agricultural activities.
One restriction that must be examined is whether the land parcel is included in the Protected Paddy Field Map, commonly referred to as the LSD Map.
Since 4 February 2026, the control of paddy-field conversion has been governed by Presidential Regulation Number 4 of 2026 on the Control of Paddy-Field Conversion. This regulation replaced Presidential Regulation Number 59 of 2019 and strengthened the integration of paddy-field protection into spatial plans.
However, LSD status is not the only legal layer that must be examined. Businesses must also distinguish among LSD, Sustainable Food Agricultural Areas (KP2B), Sustainable Food Agricultural Land (LP2B), spatial plans, and spatial-use approvals.
Distinguishing LSD, KP2B, LP2B, and Spatial Plans
Protected Paddy Fields, or LSD, are paddy fields whose function is maintained to support national food security. Land parcels included in LSD are determined through the LSD Map established by the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency.
The LSD Map is subsequently used as a basis for integrating paddy-field protection into:
- Sustainable Food Agricultural Areas, or KP2B; and
- Sustainable Food Agricultural Land, or LP2B,
as designated in spatial plans.
Regional Spatial Plans (RTRW) and Detailed Spatial Plans (RDTR) determine the designated use of, and requirements for using, space within a particular area. Accordingly, colours shown on a spatial map, including informal expressions such as a “yellow zone”, cannot independently constitute a legal basis for concluding that land may be developed.
The legal assessment must refer to the applicable area or subzone nomenclature, land-use and activity requirements, and spatial-planning regulations for the relevant location.
Three Land-Status Scenarios to Examine
Before considering conversion for commercial activities, an owner or prospective purchaser must determine which of the following three scenarios applies to the land parcel.
1. The land parcel is not included in the LSD Map
If a land parcel is not included in the LSD Map, its proposed use must still be examined against the RTRW or RDTR, the Spatial Utilisation Activity Conformity approval (KKPR), the status and type of land right, environmental approvals, Building Approval (PBG), and relevant business licences.
Exclusion from the LSD Map does not mean that the land may automatically be used for commercial activities.
2. The land parcel is included in the LSD Map but has not been designated as KP2B or LP2B in the spatial plan
Article 17 of Presidential Regulation Number 4 of 2026 provides that land included in the LSD Map but not yet designated as part of KP2B or LP2B in a spatial plan may not be converted before obtaining a land-use change recommendation from the Minister.
The application procedure continues to refer to Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024, to the extent that it does not conflict with Presidential Regulation Number 4 of 2026.
The recommendation is not an automatic entitlement. The application will be assessed by reference to the submitted documents, the condition of the land parcel, the spatial plan, existing land use, and the substantive criteria prescribed by the regulation.
3. The land parcel has been designated as KP2B or LP2B in the spatial plan
If a land parcel has been designated as KP2B or LP2B in a spatial plan, the recommendation route under Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024 cannot be used as an ordinary mechanism for developing a commercial project.
The land is governed by Law Number 41 of 2009 on the Protection of Sustainable Food Agricultural Land, as amended by Law Number 6 of 2023, and Government Regulation Number 1 of 2011.
In principle, converting LP2B is prohibited. Exceptions are available only in circumstances expressly prescribed by law, including public-interest projects and/or National Strategic Projects. Conversion for disaster-related infrastructure is governed by separate requirements.
Those exceptions must not be equated with ordinary housing developments, commercial estates, warehouses, factories, or private projects.
Who May Apply for a Recommendation?
An application for a recommendation to change the use of LSD may be submitted by:
- an individual;
- a legal entity; or
- a government institution.
The application is submitted to the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency through the Director General responsible for the control and enforcement of land and spatial matters. The regulation also allows electronic submission.
Documents to Prepare
Applications by individuals or legal entities must include:
- an application letter requesting a recommendation to change the use of LSD;
- a statement committing to carry out the development within a maximum period of three years;
- a map or sketch of the requested location;
- evidence of ownership and/or control of the land;
- information concerning the proposed use and utilisation of the land;
- a copy of the applicant’s identity document;
- a copy of the applicant’s taxpayer identification number;
- for a legal-entity applicant, a copy of its deed of establishment and legal-entity approval;
- evidence of a KKPR application, if any; and
- the KKPR or a self-declaration by a micro or small enterprise, if any.
For applications relating to business activities, the applicant must also attach:
- its Business Identification Number (NIB), if registered in the OSS System; and
- the Indonesian Standard Industrial Classification (KBLI) code being applied for.
The regulation uses the expression “evidence of ownership and/or control of the land”. Accordingly, a Deed of Sale and Purchase, land-right certificate, conditional sale and purchase agreement, relinquishment document, or other document must be assessed according to its respective legal function.
A conditional sale and purchase agreement does not by itself prove that the land right has been transferred to the purchaser.
Review and Analysis of the Application
After receiving the application, the Director General reviews the completeness and conformity of the documents within a maximum of five Days (five business days).
If the documents are incomplete or non-compliant, the application will be returned. The applicant has a maximum of 14 Days (14 business days) to complete or correct them. If the documents are not completed within that period, the applicant must submit a new application.
An application declared complete will be analysed by the technical recommendation team. The analysis must at least cover:
- conformity with the LSD Map;
- conformity with the spatial plan;
- the boundaries and area of the requested location;
- the ownership or control status of the land; and
- the land’s existing use.
The analysis also considers public interests, disasters, national and regional food-security programmes, National Strategic Projects, and investment on a national scale.
A site inspection is not an invariably mandatory stage. It may be conducted if required by the circumstances and the results of the application review.
Three Possible Outcomes
Based on the analysis, the Minister may issue a recommendation stating that:
- the LSD may be converted;
- the LSD may be converted subject to conditions; or
- the LSD may not be converted.
A recommendation permitting conversion may be issued when the proposed activity conforms with the spatial plan and satisfies the prescribed criteria. Relevant criteria include the existence of a land technical consideration for non-agricultural use, a non-agricultural land right, a KKPR or non-agricultural permit, existing buildings or land filling, location within a National Strategic Project, land acquisition for a public interest, disaster-response infrastructure, or a government and academic study concluding that the land can no longer functionally be maintained as LSD.
A conditional recommendation may be issued in certain circumstances where the proposed location does not yet conform with the spatial plan but a condition or document recognised under Article 15(7) of Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024 exists.
Conversely, a recommendation cannot be issued if the land is located in a food-crop area or subzone and/or a protected area or zone under the spatial plan and its existing condition remains a paddy field.
The recommendation must be issued within a maximum of 14 Days (14 business days) after the documents have been declared complete and compliant. The decision format in Appendix VIII to Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024 provides that the recommendation is valid for three years from the date of issuance.
A Recommendation Does Not Change Zoning or Constitute a Building Permit
A land-use change recommendation does not by itself:
- amend the RTRW or RDTR;
- convert the land parcel into a commercial zone;
- issue a KKPR;
- change the type of land right;
- grant an environmental approval;
- issue a Building Approval; or
- grant all required business licences.
The recommendation is only one layer of approval in the land-development process. Its holder must continue to satisfy all applicable spatial-planning, land, environmental, building, and sectoral licensing requirements.
Is Replacement Land Always Required?
The obligation to provide replacement land does not automatically apply to every recommendation to change the use of LSD.
The obligation principally arises under the LP2B conversion regime where conversion is permitted under an exception in Law Number 41 of 2009 and Government Regulation Number 1 of 2011.
Where replacement land is required, Article 46 of Law Number 41 of 2009 prescribes the following minimum areas:
- three times the area converted, for irrigated land;
- twice the area converted, for reclaimed tidal and non-tidal swampland; or
- the same area as the land converted, for non-irrigated land.
Whether replacement land is required must therefore be determined after specifically examining the land’s LSD and LP2B status, irrigation conditions, the legal basis for conversion, and the type of project.
Checks Before Purchasing or Developing Land
A prospective purchaser or developer should not rely solely on a certificate, information from the seller, colours on an online map, or a conditional sale and purchase agreement.
Preliminary due diligence should at least cover:
- the coordinates and boundaries of the land parcel;
- the parcel’s status under the LSD Map;
- any KP2B or LP2B designation under the RTRW or RDTR;
- the permitted activities and land uses in the relevant subzone;
- the status, type, term, and holder of the land right;
- any KKPR, permit, concession, or land technical consideration;
- the land’s existing use and existing buildings;
- the irrigation network and productivity of the paddy field;
- the conformity of the proposed business activity and KBLI code; and
- environmental approvals and construction permits.
If the transaction proceeds before the recommendation process is complete, the agreement should address conditions precedent, cost allocation, deadlines, termination rights, refunds, and responsibility for the risk that the recommendation or required permits are not obtained.
Conclusion
Owning or controlling land does not automatically confer a right to convert Protected Paddy Fields.
The first step is not to apply to turn the land into a “commercial zone”, but to determine the position of the land parcel under the LSD Map and the spatial plan. The next question is whether the parcel has been integrated into KP2B or LP2B.
Only LSD not yet designated as KP2B or LP2B in a spatial plan may use the recommendation mechanism under Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024. The recommendation still does not replace a spatial-plan amendment, KKPR, environmental approval, land right, or construction permit.
For purchasers and developers, checking LSD status before signing the transaction is safer than trying to resolve spatial-planning obstacles after paying the purchase price.
Read the Indonesian version: Alih Fungsi Lahan Sawah Dilindungi untuk Kegiatan Komersial.
Prasetyo Law Office
Prasetyo Law Office is a law firm based in Jakarta, Indonesia, providing integrated legal services to clients across a broad range of matters, from commercial transactions to cross-sector litigation. Drawing on years of experience, we not only understand the regulatory framework but also the dynamics of the industries and businesses in which our clients operate. We provide comprehensive legal advice and strategic solutions to help clients manage legal risks across their business challenges.
For further information regarding this issue, please contact us:
Prasetyo Law Office
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Principal sources: Law Number 41 of 2009 on the Protection of Sustainable Food Agricultural Land, as amended by Law Number 6 of 2023; Government Regulation Number 1 of 2011 on the Designation and Conversion of Sustainable Food Agricultural Land; Presidential Regulation Number 4 of 2026 on the Control of Paddy-Field Conversion, particularly Articles 16, 17, and 26 to 28; Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 2 of 2024, particularly Articles 12 to 16 and Appendices VI and VIII; Regulation of the Coordinating Minister for Food Affairs Number 2 of 2026; and the applicable LSD Map and RTRW/RDTR for the relevant land location.
Disclaimer: This publication is provided for general information and educational purposes based on the regulations and materials available as of 13 August 2026. It does not constitute legal advice or a formal legal opinion and should not be used as the sole basis for any particular reporting, licensing, transaction, or dispute. Indonesian regulations, OSS System functionality, and administrative practices may change. Advice tailored to the relevant facts and verification of current requirements should be obtained before taking action. Receipt or use of this publication does not create an advocate-client relationship.
