The utilization of peatlands as agricultural areas that does not pay attention to the sustainability aspects often contributes to climate change and the decline in the peat ecosystem function. For better peatland management and to prevent more severe environmental losses, knowledge of the impacts on chemical and hydro-physical peat characteristics in a specific area is required. This study was aimed to assess the chemical and hydro-physical characteristics of the peat utilized as agricultural land. The study was conducted by field measurements and peat sample analysis in the laboratory. The results indicated that peat managed as agricultural land is categorized as deep inland peat with more than 3 m thickness and dominated by sapric type in the surface layer. Intensive agricultural management significantly changes some peat’s chemical characteristics by increasing the pH, phosphor, potassium, calcium, and magnesium contents. Otherwise, the peat management has lowered the hydrological function characterized by increasing water level depth, bulk density, reducing the water content and hydraulic conductivity. Hydrological peat functions on agricultural peatland should be restored by applying appropriate canal blocking. Paludiculture systems should be considered as promising agricultural land management that combines adaptive crops and suitable tree species with high economic value for the community.