Implementation and Legal Consequences of Profit Sharing Agreements for Rice Farmland Between Landowners and Farmers in Tanggetada Subdistrict, Kolaka Regency

Abstract

This study analyzes the implementation of rice farming profit sharing agreements between landowners and tenant farmers in Tanggetada Subdistrict, Kolaka Regency, identifies the underlying factors of using verbal agreements, and examines their legal implications. Using an empirical legal method with a qualitative approach, data were gathered through document analysis and in depth interviews in Lamedai, Lalonggolosua, and Oneeha Villages. The results show that profit sharing agreements are conducted entirely orally based on local custom and mutual trust, failing to comply with Article 3 of Law Number 2 of 1960, which mandates written agreements before the Village Head. The
primary driving factors include strong cultural mutual aid principles, limited farmer capital, and landowners' efforts to keep land productive to avoid violating prohibition on absentee ownership under Article 10 of the Basic Agrarian Law. Legally, while these oral agreements remain binding under Articles 1320 and 1338 of the Civil Code, they possess weak formal evidentiary weight, potentially causing legal uncertainty during disputes.