Legal Issues in the Subdivision of Purchased Land Acquired by Individuals under Agrarian Reform

Abstract

               Agricultural land reform is an important tool of the state to ensure fair distribution of land and provide security for small farmers. One method is for the state to purchase land from private owners and allocate it to farmers through hire-purchase contracts, which eventually allow farmers to gain ownership. However, in practice, certain legal problems in managing this purchased land may conflict with the goals of agricultural land reform.
               This study aims to: (1) examine how purchased land is subdivided under the Agricultural Land Reform Act, (2) analyze the legal and policy impacts of such subdivisions on landholding structures, and (3) propose ways to improve the law and practices to prevent negative consequences. The research is based on documentary study of primary and secondary sources, with analysis comparing legal principles and actual practices. The findings are then discussed to draw conclusions and suggest improvements, as well as to contribute new knowledge in this field.
               The results show three main types of subdivision under the Act. First, subdivision during hire-purchase: under the 2021 Regulation of the Agricultural Land Reform Committee, farmers may transfer their rights to spouses, children, or relatives. If transferred to more than one person, the land may be divided into smaller plots, which can become too small for farming and contradict the intention of Section 39 to keep landholdings large enough for livelihood. Second, subdivision after farmers gain ownership: Section 39 of the 1975 Act strictly prohibits subdivision, so any transaction to divide land after ownership is granted by the Agricultural Land Reform Office (ALRO) is legally invalid. Third, subdivision under exceptions in Section 39: for example, inheritance by legal heirs, transfers to agricultural cooperatives, or transfers back to the ALRO. These exceptions may still lead to land being divided, even if subdivision was originally prohibited.
               In conclusion, subdivision of purchased land is possible during the hire-purchase stage, but once ownership is obtained from the ALRO, it is strictly prohibited. However, the exceptions in Section 39 create situations where prohibited land may still end up being subdivided.