Abstract

The agreement for profit sharing carried out in Nagari Sungai Durian, Padang Pariaman district is to implement a profit sharing agreement in verbal form based on agreement between landowners and cultivators, and trust between landowners and cultivators. based on Production Sharing Agreements rules in Indonesia, form of agreement for profit sharing must be in written form. the form of the agreement made in Nagari Sungai Durian Padang Pariaman Regency is in the form of oral because the production sharing agreement made verbally has been done hereditary and has become a habit by the people in Nagari. The right of the landowner is to accept the distribution of land yields in accordance with the agreement of the parties, while the obligation of the landowner is to surrender the land to the cultivator, and the right of the cultivator is to accept the distribution of land according to the agreement. the land he cultivated well for the landowner. Production sharing agreements made orally in Nagari Sungai, Padang Pariaman Regency are invalid because the agreement does not meet the nature of customary law, which is concrete and does not fulfill Law Number 2 of 1960 concerning production sharing agreements contained in article 3 paragraph (1) which states , the profit sharing agreement must be in written form and there must be two witnesses between the two parties

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