Abstract:
The profit-sharing agreement is one of the rights derived from customary
legal practices recognized in the Basic Agrarian Law, albeit categorized as a
temporary right due to its perceived elements of coercion. This research aims to
assess the extent to which the Basic Agrarian Law maintains its regulations in this
temporary form while acknowledging the often detrimental practices to farmers.
Additionally, this study seeks to determine how much the concept of local wisdom in
the implementation of a profit-sharing-based agricultural system can be considered
to meet the elements of legal utility. The research method employed is normative
legal research, with data analyzed normatively through the interpretation and
discussion of research materials based on laws, legal norms, theories, and legal
doctrines related to the core issues. The findings of this research are descriptive,
utilizing both primary and secondary data. The research results indicate that,
normatively, the Basic Agrarian Law has not undergone revision, thus still
regulating temporary business rights, even though, in practice, the temporary basis
still involves elements of coercion. Another outcome reveals that the concept of local
wisdom in profit-sharing systems must fulfill elements of legal utility. However, in
practice, especially concerning the three main factors required by the law, such as
a written agreement, profit distribution, and duration of the agreement, it is
concluded that they do not meet the principle of legal utility.
