THE BINDING POWER OF UNWRITTEN PROFIT SHARING AGREEMENTS ON AGRICULTURAL LAND WITH THE MARO SYSTEM IS ASSOCIATED WITH LAW NUMBER 2 OF 1960 CONCERNING PROFIT SHARING

Abstract

This research aims to analyze the interaction between Law Number 2 of 1960 and the maro system, as well as its implications for the binding force of unwritten agricultural land production sharing agreements. Through a normative juridical approach, this research examines the provisions of the law and judicial practices related to the recognition of oral agreements in the maro system. The analysis shows that, although the law requires production sharing agreements to be in writing, judicial practice in Indonesia shows flexibility in recognizing oral agreements as a valid form of agreement. This research also reveals the importance of legal reform or policy adjustments to accommodate unwritten production sharing agreements, strengthening justice and legal certainty for land owners and cultivators. These findings offer an important contribution to the understanding of traditional agricultural law and practice, emphasizing the need for legal approaches that are more inclusive and adaptive to the needs of Indonesian agricultural communities.