Indonesia Updates Land Valuation Framework through MAASP Regulation No. 3 of 2026

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Authors

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Overview

The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency ("MAASP") has issued MAASP Regulation No. 3 of 2026 concerning Land Valuation ("MAASP Reg 3/2026") on 19 February 2026, which came into force on 25 May 2026. This regulation establishes the implementing framework for land valuation in Indonesia, including the methodology, institutional arrangements, and data governance applicable to the preparation and updating of land value information.

The concepts of Land Valuation, Land Value Zone (Zona Nilai Tanah – "ZNT"), and Parcel-Level Valuation (Nilai Bidang Tanah – "NBT") are not entirely new under Indonesian land law. However, MAASP Reg 3/2026 introduces a new standardized, integrated, and technology-driven framework that formalizes and significantly enhances the existing land valuation regime.

MAASP Reg 3/2026 is intended to ensure that land valuation is carried out in a systematic, standardized, and accountable manner, with outputs forming part of a national land value database. The regulation will be relevant for a broad range of stakeholders, particularly those involved in real estate, infrastructure, financing, and land-based investments, where official land value benchmarks increasingly play a central role in regulatory and commercial decision-making.

Organization of Land Valuation

Under MAASP Reg 3/2026, the implementation of land valuation activity comprises the preparation and updating of Land Value Maps (Peta Nilai Tanah). The regulation applies to land valuation conducted on individual land parcels as well as groups of land parcels within a defined zone, covering both agricultural and non-agricultural land within designated cultivation areas. In this context, land value is assessed independently from any buildings or vegetation situated on the land, thereby focusing on the intrinsic value of the land itself.^[1] The land value maps shall consist of:^[2]

1. Land Value Zone (Zona Nilai Tanah – "ZNT") Map, as a representation of average land values within a defined zone;
2. Land Parcel Value (Nilai Bidang Tanah – "NBT") Map, as parcel-level valuation derived through statistical analysis, and the establishment of a structured Land Value Database to store spatial and textual valuation data in digital form;^[3]
3. Other supporting thematic maps providing land value information.

These maps represent estimated land values as at a specific valuation date and are prepared in accordance with standardized mapping requirements.

The regulation provides that the valuation date is fixed on 31 December of the relevant year, and that Land Value Maps are generally valid for a period of 5 (five) years, subject to certain exceptions such as force majeure events resulting in changes in land value, governmental requirements arising from cooperation arrangements, and budget availability, which may result in the Land Value Map being applied for a period longer or shorter than 5 (five) years.^[4] The resulting data is integrated into the national land information system and forms part of a broader digital land value database maintained by the MAASP.

Valuation Methodology

Land valuation under MAASP Reg 3/2026 is based on a combination of transaction data and market offer data, supported by spatial and non-spatial information obtained from various sources.^[5] Data collection is conducted through structured surveys involving landowners, property developers, intermediaries, and relevant public authorities, as well as through requests to data custodians and independent data gathering.^[6]

The regulation adopts a hybrid valuation methodology combining market-based approaches with statistical validation techniques. For ZNT Maps, values are determined through sample analysis and statistical testing, including the application of relative standard deviation thresholds.^[7] For NBT Maps, the regulation permits the use of advanced analytical methods, including spatial regression models and machine learning techniques such as random forest, subject to approval by the relevant authority.^[8] The methodology is designed to ensure consistency and reliability across different regions and valuation contexts, while the regulation also provides for the periodic updating of Land Value Maps, which may be carried out at least once annually.^[9] Updates may be triggered by various factors, including the need to address complaints regarding land value information, institutional requirements, or cooperation-based projects.^[10]

In updating land values, MAASP Reg 3/2026 allows for the use of indexation methods, including the Land Value Index, to adjust existing values where changes are considered reasonable. Where significant changes occur, including changes in land use, a full revaluation may be conducted to determine new land values.^[11]

Utilization

Under MAASP Reg 3/2026, land value information may be utilized to support land and spatial planning services, as well as other purposes related to land value, which shall comprise the following:^[12]

1. As a basis for determining non-tax state revenue (Penerimaan Negara Bukan Pajak – "PNBP") tariffs for land and spatial planning services;
2. As data and information for the preparation of spatial planning;
3. As data and information to be used in estimating land acquisition costs at the planning stage;
4. Data and information for calculating changes in Land Value before and after land consolidation activities; and/or
5. Secondary data or information for other purposes.

In the event of any use of the Land Valuation maps for other purposes related to land value, such use shall be conducted through a cooperation agreement or approval from the Director General of Land Procurement and Land Development of the MAASP.^[13]

MAASP Reg 3/2026 further provides that the land value maps which have been integrated into the relevant system shall be made available for use no later than 2 January of each year, based on a decision issued by the relevant Land Office.^[14] However, where the maps cannot be utilized on such date due to constraints in the computerized land administration system, the most recent maps shall remain valid until the integration of the new maps has been successfully completed.^[15]

Institutional Framework

MAASP Reg 3/2026 confirms that authority over land valuation remains with the MAASP, with implementation delegated to the Director General of Land Procurement and Land Development.^[16] In practice, the execution of land valuation activities may be assigned to regional or local land offices, having regard to efficiency, geographic conditions, and the availability of resources.^[17]

The regulation further allows the involvement of non-government valuers, including registered appraisers and mapping consultants, provided they meet the required qualifications and have undergone relevant training.^[18] Land valuation activities may also be conducted through cooperation arrangements with other government institutions or regional authorities.^[19]

In all cases, a formal valuation team must be established, consisting of designated officials and certified valuers, to ensure proper coordination, accountability, and technical oversight in the implementation of valuation activities.^[20]

Complaints and Data Governance

MAASP Reg 3/2026 introduces a formal mechanism for the submission of complaints in relation to land value information. Parties^[21] may submit objections where there is doubt or disagreement regarding the published land values.^[22] Any submission of a complaint must be accompanied by the following documents:^[23]

1. A written application addressed to the Head of the Land Office;
2. A copy of the complainant's identity document, deed of establishment of a legal entity, deed of establishment of a business entity or non-legal entity organization, or the relevant power of attorney (if applicable);
3. A copy of the land title certificate or other evidence of land control/possession;
4. The file number of the land value information service;
5. The extract of the land value information;
6. Evidence of a sale and purchase transaction; and/or
7. Other supporting evidence explaining the relevant land value.

Such complaints are subject to verification and clarification processes conducted by the complaint management officer, following which the complaints will be distributed to the relevant Land Office for further handling. The Land Office receiving the complaint distribution shall process the complaint periodically, at least once every 3 (three) months. Following the handling process at the Land Office level, the complaint shall subsequently be forwarded to the Regional Office for further follow-up and resolution.^[24]

Transitional Provisions

Under Article 65 of MAASP Reg 3/2026, a set of transitional provisions is introduced to ensure continuity of land valuation activities and the orderly implementation of the new framework, as follows:^[25]

1. Land Value Maps currently under preparation or updating shall continue and be completed in accordance with the provisions of MAASP Reg 3/2026;
2. Existing Land Value Maps currently being utilized for land and spatial planning services, as well as other purposes related to land value, shall remain valid until updated land value information is issued under MAASP Reg 3/2026;
3. Existing cooperation agreements relating to the utilization of Land Value Maps entered into prior to the enactment of this regulation shall remain valid until the expiry of their respective terms;
4. Any ongoing complaints regarding land value information shall be resolved in accordance with the provisions of MAASP Reg 3/2026;
5. Further transitional provisions shall apply to the Land Office.

The implementation of the land valuation information system and its integration into the computerized land administration system must be completed within 1 (one) year from the issuance date of MAASP Reg 3/2026, which shall fall on 25 May 2027.^[26]

Conclusion

MAASP Reg 3/2026 represents a significant development in Indonesia's land administration framework by establishing a standardized, data-driven approach to land valuation. The introduction of structured Land Value Maps, supported by statistical and technology-based methodologies, is expected to enhance transparency, consistency, and reliability in land value determination.

In practice, the regulation is likely to increase the role of official land value data in regulatory, fiscal, and commercial contexts, including land acquisition, taxation, and project development. Stakeholders should therefore closely monitor the implementation of Land Value Maps in relevant areas and assess the potential implications for their existing and planned land-related activities.

1. Article 3 of MAASP Reg 3/2026. ↩
2. Article 4 (4) of MAASP Reg 3/2026. ↩
3. Article 1 of MAASP Reg 3/2026. ↩
4. Articles 6 (4) and 12 of MAASP Reg 3/2026. ↩
5. Article 7 of MAASP Reg 3/2026. ↩
6. Article 10 of MAASP Reg 3/2026. ↩
7. Article 20 of MAASP Reg 3/2026. ↩
8. Article 29 of MAASP Reg 3/2026. ↩
9. Article 32 (2) of MAASP Reg 3/2026. ↩
10. Article 33 of MAASP Reg 3/2026. ↩
11. Article 40 of MAASP Reg 3/2026. ↩
12. Article 53 (3) of MAASP Reg 3/2026. ↩
13. Article 53 (4) of MAASP Reg 3/2026. ↩
14. Article 54 (1) of MAASP Reg 3/2026. ↩
15. Article 54 (3) of MAASP Reg 3/2026. ↩
16. Article 5 (2) of MAASP Reg 3/2026. ↩
17. Article 5 of MAASP Reg 3/2026. ↩
18. Articles 2 (2) and 2 (4) of MAASP Reg 3/2026. ↩
19. Article 5 (5) of MAASP Reg 3/2026. ↩
20. Article 2 of MAASP Reg 3/2026. ↩
21. Article 57 of MAASP Reg 3/2026 stipulates that parties entitled to submit objections consist of: (i) individuals (including Indonesian citizens and foreign citizens domiciled in Indonesia); (ii) government institutions; (iii) legal entities; (iv) social or religious foundations; (v) community organizations; or (vi) business entities or institutions without legal entity status. ↩
22. Article 56 of MAASP Reg 3/2026. ↩
23. Article 58 of MAASP Reg 3/2026. ↩
24. Articles 58–61 of MAASP Reg 3/2026. ↩
25. Article 65 of MAASP Reg 3/2026. ↩
26. Article 65 (f) of MAASP Reg 3/2026. ↩

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

In this article

1. General Overview
2. Maximum Limit of Economic Benefits
3. Repayment Capacity Analysis
4. Miscellaneous

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