Production Sharing Agreement for Agricultural Land Encumbered with Liens in Southeast Sulawesi Indonesia

Abstract

The aim of the research is to attempt to analyze the form of production sharing agreement for agricultural land which is encumbered with liens which is widely applied by agricultural communities so that a model of production sharing agreement can be identified that is in accordance with the characteristics of agricultural communities in Southeast Sulawesi, Indonesia. The method used is a qualitative descriptive research type with an empirical normative approach and using secondary data. The research results show that the form of agricultural land production sharing agreement which is burdened with liens which is widely applied by the agricultural community of Southeast Sulawesi is mostly done orally between the parties based on customary law. Understanding of agreements made following the traditions, beliefs and customs of the local community which include the use of agricultural or cultivated land, distribution of results, time and duration of the agreement, obligations and responsibilities of the parties, dispute resolution, and protection of honor and customs. The ideal form of an agricultural land production sharing agreement which is encumbered with a lien is to protect the interests of the parties, the form of the agreement should be in writing before and ratified by an authorized official and the contents of the agreement should include a mechanism for sharing the results or profits from the agricultural business, the time period includes the period during which the agricultural business will take place. and production sharing agreement, payment of profit sharing, responsibility of the parties, settlement if one party does not fulfill its obligations, and termination of the agreement.