AGRARIAN REFORM AND RURAL DEVELOPMENT
IN INDONESIA
COUNTRY REPORT**
I. THE BACKGROUND
1.1. Indonesian discretion to the Coordination of
International Conference on Agrarian Reform and Rural development (ICCARD) 2006
The
World Conference on Agrarian Reform and Rural Development conducted in Rome, Italy,
in July 1979, attended by The Republic of Indonesia Commission led by The
Minister of Agriculture. The conference brought about significant declarations
imply that: (1) Most of efforts to development especially to developing countries, have not completely
brought comprehensive success to aspirations and the fundamental desires of the
community in the compliance of human dignity and the social equality as well as
solidarity, (2) Belief in agrarian reform as the key component to rural
development through access to land, water and natural resources more
adequately; better division of political and economy authority, improvement to
more productive field of work, more
participation and integrity of the village community within
production and distribution system, food productivity and food security for all
community category and mobilization of local resources; (3) Agrarian reform of
national level should get support and commitment from international association
based on independent, national
sovereignty, self – resilient and
non-intervention principles. The above-mentioned declaration known later as
“FARMERS CHARTER”.
The
coordination of International Conference on Agrarian Reform and Rural Development
(ICARRD) in Porto Alegre, Brazil, on March 6-10, 2006 is meant to strengthen
the commitment on the importance of agrarian reform and village
development to poverty alleviation as
well as sustainable food security through improving access of farmers towards
agrarian resources following the last WCARRD in Rome 26 years ago. Thus this
meeting is very crucial forum to Indonesia and the world. Considering
those matters the Government of Indonesia states its view point to the
coordination of ICCARD 2006 as follows:
1.
ICARRD place a very strategic value
in the efforts to sharing experience and lesson – learnt from other countries
regarding the best practice in agrarian reform.
2.
In ICARRD the Government of
Indonesia states its commitment to execute agrarian reform and village
development as the way-out to poverty alleviation and existing social
uneven-handedness
3.
The attendance of Commission from
the Republic of Indonesia in ICARRD coordination is an
appropriate event to build strategic association among countries determining to
execute agrarian reform and village development sides with rural community.
1.2.
General description of Indonesia
Indonesia is an archipelago with more or less
17.504 big and small islands spread along Sumatera, Java, Kalimantan/Borneo, Nusa
Tenggara, Sulawesi, Mollucas and Papua. The
Indonesian territory is divided in 33 provinces with 241.973.879 inhabitants in
2005. Based on exclusive economy-zone, Indonesia
covers a territorial of 800 millions hectares, the biggest part of it, about 76%
hectares is territorial waters and the rest of it is land terrestrial. About
120,2 million hectares of the territorial land is in form of jungle and the
rest of the land with coverage of 70.8
million hectares (37%) terrestrially utilized for various farm
cultivations such as paddy- field,
rain-fed agriculture, estate; and non-farm cultivation such as mining industry,
plantation, bush, and savanna.
1.3. Fundamental
Philosophy of Agrarian Reform and Village Development in Indonesia.
For Indonesian People, land is a gift
from the one God, so the relation of the people of Indonesia and the land is an
eternal relationship in which welfare,
prosperity , justness, sustainability and harmony of life are settled.
That basic relation is guaranteed and
protected in Indonesian Constitutions of 1945, as stated in Article 27 Line
(2): All citizens have the right to employment and adequate living for human;
Article 28 H line (4): All citizens have the right to personal property and
that right could not arbitrarily taken by others; Article 33 stating that (1)
Economic matters is structured as common corporation based on family atmosphere
(2) Production sectors important to the country, and cover peoples’ livings is
authorized by the state. (3) Earth, water and natural resources therein
authorized by the state and mostly utilized for people’s prosperity.
The basic relation to welfare and social evenhandedness for
Indonesian people urged the Country/State, as the organization of authority of
the Indonesian citizens to set arrangement for it. Specifically Article 33 Line
(3) of Constitution of 1945 brought about the basic authority as stated in the
National Law of Land. Law No. 5 of 1960 about Agrarian Main Ordinance (UUPA) in
Article 2 Line (2) that a Country has the right to:
1.
Arrange
and administer the allotment, utilization, provisions and maintenance of earth,
water and space;
2.
Determine
and arrange law relations among people and earth, water and space;
3.
Determine
and arrange law relations among people and law actions concerning earth, water,
and space.
The right is included in many policies
and legislation of land matters. The commencement of the rights should refer to
the four(4) principles namely:
Firstly, land matters give real contribution
to improve peoples’ welfare; essentially land matters contribute to the new
resources to prosperity of Indonesia;
secondly, land matters contribute and give real function to create
evenhanded common living structures, especially in relation with land authority
and ownership; Thirdly, land matters give real contribution to guarantee
the living sustainability of nation, state and community. Fourthly, land matters give contribution to create the living
structure of community, state and nation to minimize issues, problems, conflict
and disputes of land matters of the community and Indonesian Country
Besides that, the implementation of authority should refer to
some principles such as: the close relation of unity between Indonesian people
and their father land, their being Indonesian born from the unification of
father land and Indonesian people themselves with the considerations of
communal law which is not opposed to National interests. Other than that, the
private interest must be in conformed to the public interest, considering
principles to environmental conservation an d sustainable development;
considering the land availability, protection to lower - economy level
community, gender perspective and obligation to land cultivation.
The
national development nowadays aimed at setting up employment and poverty
alleviation, which are the strong foundation to improve community welfare for
social evenhandedness. The principles of evenhandedness in the community
developed through process of fundamental right fulfillment as guaranteed in the
Constitution. Almost all of the fundamental rights directly and indirectly
related to land and land matters.
The policy on agrarian reform is an
effort to reorganize the relation between community and the land. In other
words, rearranging the authority, ownership and evenhandedness land use. The
fundamental rights of community fulfilled by opening larger access to land for
community as the resources of welfare.
It is understandable that the agrarian
reform is a vast and cross sectors work. Its implementation needs supports of
strong law basis in order to unify the deeds of all constituents in actuating
the agrarian reform aimed, at least starts from the government sector that
needs understanding and deeds from related sectors. Coordination of
stakeholders including Non-Governmental Organization is crucial to the success
of agrarian reform program.
II. GENERAL DESCRIPTION OF AGRARIAN ISSUES
Since the Indonesian independence, we
have realized that there have been many issues on land matters inherited from
the colonialism. The outstanding issues are:
First: the imbalance of authority,
ownership, land use and land utilization, while there is increasing need of
land due to the rapid population growth; Second:
the dualism in law: the traditional law and international/western law. Thirdly: the uncertainty on protection
to land right of the most of the community. The second issue is under control
following the commencement of UUPA (Agrarian Main Ordinance), but not with the
first and third which have been continuing up to now.
The existence of agrarian issues,
mainly caused by the increasing needs of land, as the result of rapid increase
of the population growth and the economic activities while the number of land
and the potency of it is very limited. This situation has brought to land
authority competitiveness, the land ownership, land - use and land utilization
that end to definite conflicts of interest.
2.1.
Imbalance structures of land authority and land ownership
Village community usually generates
income through agricultural activities wherein access to land and ability to
mobilize the family members to work on the land are essential to their family
lives. The limited land to cultivate has resulted into increasing numbers of peasant
farmers or landless farmers in villages. The condition might be worse since
most of them are not formally authorize the land as their own land, even if so,
the protection to the rights to land is not strong enough. This also gives bad
impact to the low access of the farmers to capital especially access to credit
from banks.
In 1983 the percentage of agricultural
practices of peasant farmers (less than 0,5 hectares) in land authority group
achieved 40.8 percent from the total of agricultural practices. The proportion
increased to 48.5 % within 10 years.(1993). The increased percentage was worse
with the decrease of average number of land authority of the farmers, from 0.26
hectares to 0,17 hectares. The figure depicted in Table-1.
Following to that above condition, the
result of Agriculture Census of 2003 indicated the more difficult position of
the Indonesian farmers, which stated that the peasant farmers increased to 56.5%.
The farmer households increased from 20.8 millions in 1993 to 25.4 millions in
2003. From that total number, 54.4% of the households are in Java island and
45.1% are out of Java island. The former census showed 56.1% of farmer
households lived in Java and 43.9% out of Java. During that period the
percentage of peasant farmers increased more rapidly than of out of Java. In
1993 the percentage of peasant farmers households in Java was around 69.8%,
while in 2003 increased up to 74.9%. In out of Java island in 1993 the
percentage of peasant farmer households was 30.6% while is 2003 increased to
33.9% (depicted in Figure-1).
FIGURE 1
Table-1. Agricultural rural practices distribution in Indonesia
(1983-1993)
|
No.
|
Group of width agricultural
practices (ha)
|
Agricultural distribution |
|||
|
1983
|
1993
|
||||
|
|
|
% agricultural
practices
|
Average width (ha)
|
% agricultural
practices
|
Average width
(ha)
|
|
1.
|
<
0,5
|
40,8
|
0,26
|
48,5
|
0,17
|
|
2.
|
0,5 – 1,99
|
44,9
|
0,94
|
39,6
|
0,90
|
|
3.
|
2,0 – 4,99
|
11,9
|
2,72
|
10,6
|
3,23
|
|
4.
|
> 5
|
2,4
|
8,11
|
1,3
|
11,9
|
|
Ø Total
agriculturalparctices (juta)
Ø Total areas (juta ha)
Ø Average width of
agricultural practices (ha)
|
15,9
16,7
1,05
|
17,9
15,4
0,74
|
|||
From the point of view of distribution
among islands there is also imbalance in land use and land utilization.
Nationally the land use distribution has no consequential problem at all. From
the point of view of geographic land distribution, we could see the imbalance
of land use between Java and Bali and other
areas. The land use in Java-Bali areas is more intensive compared to other
areas. This caused from the un-spread population distribution correlated to the
level of land fertility.
The fertile areas enable better living
to the surrounding inhabitant that lead neighboring residence to move in, this
resulting in the increasing number of the inhabitants of the areas.
Automatically the condition will lead to more centralized inhabitants or
un-spread population distribution of the whole areas in Indonesia.
(Figure-3 and 4).
From the point of view of distribution
among islands there is also imbalance in land use and land utilization.
Nationally the land use distribution has no consequential problem at all. From
the point of view of geographic land distribution, we could see the imbalance
of land use between Java and Bali and other
areas. The land use in Java-Bali areas is more intensive compared to other
areas. This caused from the un-spread population distribution correlated to the
level of land fertility.
The
fertile areas enable better living to the surrounding inhabitant that lead
neighboring residence to move in, this resulting in the increasing number of
the inhabitants of the areas. Automatically the condition will lead to more
centralized inhabitants or un-spread population distribution of the whole areas
in Indonesia.
PICTURE 3 AND
4)
Picture - 3. Intesity of land use of of each island of 2002
Picture-4. Composition of types of land use area – based
Geographically with no respect to irrigation system, the land use for paddy field in majority situated in Java and Bali (43.9%). The rest spread over Sumatera (29.8%), Kalimantan (12.8%), Sulawesi (9,2%), Nusa Tenggara and Maluku (4%) and a small amount in Papua. It is obviously seen that there is imbalance of paddy-field among areas. (Table-2) Whilst Table-3 depicts the Indonesian Plantation sectors located in Sumatera covering around 67.6% from the total of plantation areas in Indonesia. For more vast plantation and bigger scale of ponds, the spread areas presented in Table-4.
Tabel-2. Paddy field use based on areas of irrigation system
|
NO.
|
AREAS
|
Techncal irrigation
paddy field
|
Non-irrigation field
|
Total
dimension of field
|
|||
|
Width
(Ha)
|
%
|
Width
(Ha)
|
%
|
Width
Paddy field
(Ha)
|
%
|
||
|
1.
|
Sumatera
|
997,060
|
23.74
|
1,332,040
|
36.84
|
2,329,224
|
29.80
|
|
2.
|
Jawa and Bali
|
2,442,100
|
58.14
|
988,440
|
27.34
|
3,430,698
|
43.89
|
|
3.
|
NTB and Maluku
|
154,920
|
3.69
|
155,120
|
4.29
|
310,144
|
3.97
|
|
4.
|
Kalimantan
|
228,850
|
5.45
|
772,890
|
21.38
|
1,001,845
|
12.82
|
|
5.
|
Sulawesi
|
373,500
|
8.89
|
346,630
|
9.59
|
720,239
|
9.21
|
|
6.
|
Papua
|
4,240
|
0.10
|
20,640
|
0.57
|
24,980
|
0.32
|
|
|
Indonesia
|
4,200,670
|
100.00
|
3,615,760
|
100.00
|
7,816,130
|
100.00
|
Table-3 . Plantation coverage by Areas to 2004
|
NO.
|
AREAS
|
Coverage of estate width
|
|
|
(HA)
|
%
|
||
|
1
|
Sumatera
|
11.276.929
|
67,51
|
|
2
|
Jawa and Bali
|
682.978
|
4,09
|
|
3
|
Kalimantan
|
2.590.584
|
15,51
|
|
4
|
Sulawesi
|
1.340.262
|
8,02
|
|
5
|
Nusa Tenggara and Maluku
|
605.015
|
3,62
|
|
6
|
Papua
|
208.303
|
1,25
|
|
|
TOTAL
|
16.703.771
|
100,00
|
Table 4. Estate and Ponds in Big Scale by area of 2006
|
NO.
|
AREAS
|
Coverage of Land Operational Right
|
|
|
(Ha)
|
%
|
||
|
1
|
Sumatera
|
3.528.881,69
|
53.60
|
|
2
|
Jawa Dan Bali
|
2.141,80
|
22.44
|
|
3
|
Kalimantan
|
1.101.256,64
|
16.72
|
|
4
|
Sulawesi
|
326.372,59
|
4.96
|
|
5
|
Nusa Tenggara and Maluku
|
103.489,08
|
1.57
|
|
6
|
Papua
|
46.776,88
|
0.71
|
|
|
TOTAL
|
6.584.035,30
|
100.00
|
2.2 The Shift of Agricultural Land Function to
Non Agricultural Land
Function
As an agrarist
country the agricultural sector has significantly contributed to growth of
economy in Indonesia. During its economy crisis a few years ago, the superior
agricultural sector oriented to export proved to be tough to deal with the
crisis impact. Although the role has been proved to be tough in economic
development, the sustainability of the agricultural practices should
necessarily get attention, this is mainly due to the big threats to the
availability of land for agricultural activity caused by the rapid conversion
of agricultural land to non-agricultural ones.
In the mean time
the agricultural land covers only about 40.5 million hectares comprises of paddy field (4.5%), rainfed agriculture (8%)
and plantation of (8.7%). The areas is shrinking due to the other land use
conversion. The rapid agricultural land conversion to non-agricultural could
give impact to other living aspects, among others are:
(a)
Decreasing food productivity leading to food insecurity ;
(b)
Diminishing the livelihood resulting in unemployment that
leads to social issues;
(c) Diminishing
high cost investment of agricultural infrastructure( such as irrigation).
Some factors leading to rapid agricultural land conversion to
non-agricultural land use are:
(a) Population Factor: the rapid increase of
population number results in land
demands for housing, indistrial services and other public services Besides that the improved living standard
plays important role in additional land demand for more intense
activity of the community.
(b)
The demands of land for non agricultural activity among
others are the development of real estate, indistrial estate, trading areas and
other servives need large areas of land, and some parts of it taken from
agricultural land includng paddy field.
(c)
The economic factor, that is the high level of profit of
land rent taken from non-agricultural sector and the low land rent of the
agricultural land. Low incentive of agricultural practices due to the high
production cost, while the agricultural products is relatively low and
fluctuating. Other that that, other basic needs of household is more frequently
put the households in no other choice than selling some parts of their
agricultural land.
(d)
Cultural-Social factor such as the existing rule of
legacy that caused in fragmented agricultural land and the result do not
fulfill the scale of advantageous income
generating activities.
(e) Environment
degradation such as long dry season that results in water shortages for land
irrigation especially paddy field; the excessive use of fertilizer and
pesticides wich gives impact to the increasing of certain pest infection caused
by the diminishing of natural predator of related pest and the polluted
irrigationn water; the environmental damage of paddy field areas will cause
sea-water intrution to land areas which is potential to paddy field
toxification.
(f)
Local development which prioritizing the development of
short - term profit promising sector in order to improvelocal income and ignoring the long term importance and thorough
national importance.
(g) The
weaknesses of law enforcement existing
regulations.
An observation conducted from
1994-1999 depicts the conversion
of kinds of agricultural land use of
paddy field, rainfed agriculture and settlement land is approximately 108
hectares, wherein 57.000 hectares or more than 56% of the land use conversion
taken from paddy field lands.(Table 5)
Tabel-5. LAND USE
AGRICULTURE CONVERSION TO NON AGRICULTURE FROM 1994 – 1999 IN INDONESIA
|
Type of Conversion Land used
|
1994-1995
(Ha)
|
1995-1996
(Ha)
|
1996-1997
(Ha)
|
1997-1998
(Ha)
|
1998-1999
(Ha)
|
Total
(Ha)
|
|
Paddy
field to
a.
residence
b.
Industry
|
10645
782
|
1175
16054
|
3537
22596
|
888
72
|
1837
131
|
18082
39635
|
|
Total
|
11427
|
17229
|
26133
|
960
|
1968
|
57717
|
|
Rainfed
agriculture to
a.
residence
b.
Industry
|
2471
252
|
5695
410
|
2912
460
|
1065
42
|
616
510
|
12759
1674
|
|
Total
|
2723
|
6105
|
3372
|
1107
|
1126
|
14433
|
|
Mixed
Cropping Garden to
a.
residence
b.
Industry
|
7349
176
|
6161
717
|
2803
364
|
163
74
|
2663
354
|
19139
1685
|
|
Total
|
7525
|
6878
|
3167
|
237
|
3017
|
20824
|
|
Estate
crops to
a.
residence
b.
Industry
|
165
1332
|
447
52
|
1232
293
|
6842
52
|
84
3
|
8770
1732
|
|
Total
|
1497
|
499
|
1525
|
6894
|
87
|
10502
|
|
Total
conversion agriculture land to
a.
residence
b.
Industry
|
20630
2542
|
13478
17233
|
10484
23713
|
8958
240
|
10316
998
|
63866
44726
|
|
Total
|
23172
|
30711
|
34197
|
9198
|
11314
|
108592
|
2.3
Agrarian
Conflict
The agrarian conflict or dispute in
this report is a conflict of a piece of land and any growing things and any
things included therein claimed by certain party to the other party. In many
cases this begins with the permits issuance and right to land use of certain
piece of land for big enterprise or development projects proposed by the
government.
It has generally been understood that
land conflicts that initially simple, in timely be the most complicated
conflict due to uncompleted undertaken. In the mean time agrarian conflict
happens everywhere and needs sound resolution in juridical and political ways.
Agrarian conflicts could be identified as latent problems, meaning that
although an agrarian conflict has been undertaken and assumed to have been be
resolved, similar problem or case could arise unexpectedly the other day.
In order to ease and to efficiently
undertake the agrarian conflicts, in general l agrarian conflicts are grouped
in 8 big classifications, they are:
1). Estate Land Conflict caused by:
-
Unaccomplished
compensation process;
-
Inherited
land of the people taken over for plantation;
-
The
width of the land in field is larger that it is stated in the certificate of
Rights to Building Use (HGU);
-
The
estate land is a district land inherited from a sultanate or the certain
communal;
-
The
estate land which is not well cultivated, under scoring of appraisal to be in
the Fourth (IV) or Fifth (V) class.
2). Conflicts to proposal of right to
land located in forest areas and the agrarian conflict between community and
public corporation of Indonesian Forestry.
3). Agrarian Conflict of registration
to land rights related to the overlapping rights or conflict to land
territorial border.
4). Agrarian Conflict related to land
occupation and/or compensation demand of community whose land is exempted for developer to real estate, industrial
estate, office buildings and tourism
areas.
5).
Agrarian Conflicts related to claims of sultanate land which is difficult to
determine the existence rights to the land.
6).
Agrarian conflicts related to exchanging the “bengkok” land for use of village employees as a replacement of
salary.
7).
Other agrarian conflicts such as conflicts of abandoned land and vacant land.
The highest intensity of the conflict
is the conflict of plantation estate (344 cases). Following to that is conflict
existing resulted from public policy with relevant to public services
development and city facility of 243 cases, housing/real estate development and
open new city of 232 cases, development of productive forest areas of 141
cases, development of industrial estate and factories of 115 cases, check dam
construction and irrigation of 77 cases development of tourism facilities (hotels
and resorts) of 73 cases, development of large scale Mining industry of 59
cases and development of Military facility of 47 cases.
Table-6. Total Agrarian cases based on land
allotment
|
No
|
Types of conflicts
|
Total
|
%
|
|
1
|
Plantation
|
344
|
19,6
|
|
2
|
Public facility/city facility
|
243
|
13,9
|
|
3
|
Housing complex/new city
|
232
|
13,2
|
|
4
|
Foresttfy Production
|
141
|
8,0
|
|
5
|
Industrial estate
|
115
|
6,6
|
|
6
|
Check dam/irrigation
|
77
|
4,4
|
|
7
|
Torism/hotel/Resort
|
73
|
4,2
|
|
8
|
Mining
|
59
|
3,4
|
|
9
|
Military facility
|
47
|
2,7
|
|
10
|
Forest conservation
|
44
|
2,5
|
|
11
|
Ponds
|
36
|
2,1
|
|
12
|
Government Faclity
|
33
|
1,9
|
|
13
|
Transmigration
|
20
|
1,1
|
|
14
|
Transmigrasi
|
11
|
0,6
|
|
15
|
Others
|
278
|
15,9
|
|
|
Total conflicts
|
1.753
|
100
|
III. POLICY TO AGRARIAN REFORM AND ITS IMPLEMENTATION
3.1.
The
Implementation of Agrarian Reform
Agrarian reform is a policy to open
access to land of the community as the resource of welfare. As we all
comprehend that agrarian reform in not something new. The agrarian reform in Indonesia
experienced a rise and fall as times go by. Following the national independence
the government has been carrying out agrarian reforms began with the
elimination of free-from tax payment villages( 1946) and private lands (1958).
In 1960 the agrarian reform was
carried out simultaneously, through out Indonesia. Starting with the
issuance of Law No. 5 of 1960 on the Profit Sharing Agreement, this law aimed
at setting up a fair profit sharing between land - owner and the peasant.
Besides that the law gives protection to peasant with rights and obligation
determination of land owner and the peasant.
Following to the previous law, Law No.
5 of 1960 issued concerning the Fundamental Regulations in the Main Ordinance
as the first constitution set up by the
government of the Republic
of Indonesia for the
replacement to colonial constitution
known more as Agrarian Main Ordinance (UUPA). The Agrarian Main
Ordinance is the constitution of agrarian reform. Agrarian Main Ordinance
besides consisting the formulations of agrarian law reorganization to the new
agrarian law also consisting of principals on agrarian reform in Indonesia as
stated in Article 6,7,10,11,13,and 17 of Agrarian Main Ordinance.
Article 6 states that land employs a
social function, Article 7,10 and 17 place a law fundament to restructure the
imbalance land authority and land ownership, in the way of setting up the
limited width of land ownership or authorized by individual person or families;
and it is a compulsory for land owner to – basically – self sufficiently
managing their land actively.
Article 11 gives protection to lower
economy level people. Article 12 and 13 gives the foundation to the government
to coordinate the land base business in order to improve the production and
peoples welfares, give guarantee to each Indonesian citizen a standard of
living in line with human dignity individually or for the family. Article 14
places a fundamental regulation to land utilization.
The first step of the Agrarian reform
in Indonesia
actuated in a number of programs including:
1.
Agrarian
law reform;
2.
Exemption
of foreign rights and colonial concessions on land;
3.
Seizing
feudalism exploitation;
4.
Re-arrangement
of the land ownership and land authority
and other matters related to regulations to land authority;
5.
Planning,
provisions, intention and utilization of earth, water and resources including
in it, in a good plan to conform to one’s ability and capability.
In order to implement the agrarian
reform the government issued Law No. 56 of 1960 regarding Decree on
Agricultural land Ownership that regulates (a). the determination of maximum
width of agricultural land authority and land ownership, (b). determination of
minimum width of agricultural land authority and land ownership, (c).
Prohibition to any actions resulting land small splitting of land ownership,
and (d). redeem and l return pledging
lands. The implementation of this Law the government issued Government
Regulation No. 224 of 1961 on the Land Distribution Conduct and Compensation as
well as other ordinance.
In its implementation the fourth
program renowned as land reform covering:
1.
Prohibition
to excessive agricultural land;
2.
Prohibition
to absentee land ownership;
3.
Redistribution
to land of maximum limit, lands assumed to be absentee and lands used of self
territory of jurisdiction and other state lands;
4.
Regulation
on redemption and returning the pledged land;
5.
Reorganizing
the agreement on agricultural profit sharing, and
6.
The
determination on maximum limit to agricultural land ownership with the
prohibition to commit any actions resulting the agricultural land splitting.
Land reform aimed at:
(1)
Social - economic: a) .improving social economic
condition of the people by strengthening rights to ownership and put content of
a social function to the rights to ownership, b).improving national product
especially agricultural product to
increase income and standard of living;
(2)
Social – politics: a). eliminating of land-lord and
exemption to vast land ownership, b).address evenhanded distribution on living
resources to farmers in the form of land in order to get justness on product
sharing
(3)
Mental-psychological:
a) improving working spirits for peasant farmers by giving assurance to rights
to land ownership, b). Improving working relation between the land owner and
the peasant
It is very obvious that the objective
of the land reform in Indonesia
is mainly to improve income and living standard of the farmers as the
fundamental or prerequisite to conduct economic development entering justness
and prosperous community.
One of the most significant action to
Land Reform Program is redistribution to land (re-distributive land reform) as
the provision to rights to land ownership on lands to farmers who fulfill the
requirements. Therefore land re – distribution is an instrument to overcome
imbalance of land authority and land ownership that will end to poverty
alleviation- not only distribute land but simultaneously followed with other
activities, such as facilitation to land reform farmers to increase production
by giving working capital, seeds, fertilizer, agricultural technology and
product market, overall as the cross-sector coordination.
The first, second and the third out of
the five programs considered to be successful, yet the fourth and the fifth-
especially the fourth on the land reform said to be failed. The low political
support, law enforcement, financial unavailability, inaccurate data of
information and unclear conduct of constitution and inadequate implementing
organization and human resource give additional backwards to agrarian reform
not as expected and leaves a lot of work and issues.
Furthermore, the change in politics
constellation in Indonesia
after of 1965 year caused the dim on land reform as well agrarian reform. Not
diminishing but, moving. The land to distribute to the peasant/landless farmers
formerly addressed to be land impacted to land reform program, excessive land
taken from maximum limits and absentee land, shifting to state-authorized land.
Agrarian reform face some constraints
in the implementation, therefore the program of land distribution kept
actuating following 1965. The land distribution program not done
systematically, comprehensively, and aside from the coordination and synergy
inter sector. The land distribution program of land reform object has distributed
approximately, 1.159.527.273 hectares, to 1.510.762 households.
Table-7. Total land reform object redistributed (covering
all land category – land of land reform object )
|
No
|
Provinces
|
Total Redist.1961 s/d 2005
(Ha)
|
Total accpetance Redist 1961
s/d 2005 (KK)
|
Average width recieved by
the community (Ha)
|
|
1.
|
Sumatera
|
255.392,620
|
0,943
|
|
|
2.
|
Jawa Dan Bali
|
546.848,774
|
0,604
|
|
|
3.
|
Kalimantan
|
104.030,962
|
1,335
|
|
|
4.
|
Sulawesi
|
172.561,917
|
0,929
|
|
|
5.
|
Nusa Tenggara Dan Maluku
|
77.833,000
|
1,131
|
|
|
6.
|
Papua
|
2.860,000
|
1,351
|
|
|
|
Total
|
1.159.527,273
|
0,768
|
The compensation the government paid
to the past land owner (1967-2005) amounted 58.092.036.316 to excessive land
and absentee land covers 121.483.3947 hectares (Table-8).
Tabel-8. Compensation payment realization to land
superflous from maximum limit and Absentee from year 1967-2005
|
No.
|
Province
|
Total ex owners
|
Width (Ha)
|
Total compensation (Rp)
|
|
1
|
Sumatera
|
770
|
26.362,3465
|
7.365.395.058
|
|
2
|
Jawa & Bali
|
29.331
|
70.160,3631
|
37.333.171.283
|
|
3
|
Kalimantan
|
5
|
868,1355
|
349.639.040
|
|
4
|
Sulawesi
|
1.230
|
20.944,3955
|
11.387.811.696
|
|
5
|
Nusa Tenggara & Maluku
|
250
|
3.148,1541
|
1.656.019.239
|
|
6
|
Papua
|
|
|
|
Total |
31.586
|
121.483,3947
|
58.092.036.316
|
|
The above condition initiated
revitalizing to agrarian reform. This initiative actuated in the issuance of
Indonesian Peoples’ Advisory Assembly Decree Nr.: IX/MPR/2001 on Agrarian
Reform and natural Resources management, to give basis and aims to evenhanded,
sustainable and environmental-friendly agrarian reform and ensuring
institutional strengthening to implement the program.
The aims of policy on agrarian reform
are:
a.
Carrying
- out research and study to various decree/regulations relevant with agrarian
in the frame work of policy synchronization among sectors in order to the
existence of constitution based on the principles stated in Article 4 of the
constitution.
b.
Rearranging
the land reform regarding evenhandedness on land authority, land use, land
utilization, land ownership with consideration to land ownership for peoples.
c.
Conducting
land records through land registration and inventory on land authority, land
use, land utilization, land ownership systematically and comprehensively, in
the frame- work of land reform.
d.
Giving
solution to existing conflicts related to agrarian resources and anticipates
conflict potency in the future to guarantee law enforcement base on the
principles included in Article 4 of the constitution.
e.
Strengthening
the institution and the authority in undertaking agrarian reform and give
solution to conflict related to agrarian resources
f.
Taking
efforts to financial and agrarian reform implementation program and solutions
to existing agrarian conflicts
Following to the aims the government has
issued Presidential Decree No. 34 of 2003 on the National Policy on Land
Matters to set concepts, policy and comprehensive and integrated national land
system in the frame-work of Unitary
State of the Republic of Indonesia.
3.2.
The
Development of Agriculture and Village.
The development of agriculture and
village in Indonesia
aimed at improving community welfare and decreasing the number of poor
households. The main problem to cope is the splitting of development into
various sectors. In many cases, the development in land exploitation
overlapping with other claims and interests. This resulted in uncompleted
village development. The prevalence to poverty in villages becomes general
phenomena found in many areas in Indonesia.
In 2002, the number of poor community
was about 38.4 millions (18.2%), wherein the percentage of poor community in
villages places 21.1%.higher than that of cities’ reaching to 14.4% (depicted
in Table 10). The poor communities in villages usually are farmers, work in
agricultural sector. The high level of the poor community could not be
separated from the structural problems related to community and land. The
unorganized relations between community and land leads to poverty for the
biggest part of Indonesian people, unjustness and continuing conflicts even
structural conflicts.
Table-9. Development of Poor Community 1978 – 2002
(million people)
|
Year
|
Percentage of poor community
|
Total poor community
|
|||||
|
City
|
Village
|
City and Village
|
City
|
Village
|
Total
|
||
|
Village+city
|
Agriculture
|
||||||
|
1996
|
9,7
|
12,3
|
11,3
|
7,2
|
15,3
|
22,5
|
|
|
19961),3)
|
13,6
|
19,9
|
17,7
|
9,6
|
24,9
|
34,5
|
|
|
19981),2)
|
21,9
|
25,7
|
24,2
|
17,6
|
31,9
|
49,5
|
|
|
19991),3)
|
19,5
|
26,1
|
23,5
|
15,7
|
32,7
|
48,4
|
26,0
|
|
20001),4)
|
14,60
|
22,38
|
19,14
|
12,3
|
26,4
|
38,7
|
20,1
|
|
20011)
|
9,79
|
24,84
|
18,41
|
8,6
|
29,3
|
37,9
|
23,4
|
|
20021)
|
14,46
|
21,10
|
18,20
|
13,3
|
25,1
|
38,4
|
20,6
|
1)Based on poverty
standard of 1998
2)Susenas, December 1998
3)Susenas regular
February. Without East Timor
4)Susenas 2000, without NAD dan Maluku
Other issue related to village
development is the low agricultural productivity compared to other sectors.
Seen from the Domestic Product Gross (Product Domestic Bruto) per manpower,
based on constant price in 1993, the income of agriculture labor was around
0.23-0.26 compared to income of non-agricultural labor. Not only has this related
to the low access of the farmers to various capital resources but also a
reflection to the low average of land authorized by farmers. (See Table-10).
Table-10. Income
level of abricultural labor and non agriculture 1993– 2003 (Rp/year constant
price 1993)
|
Period/year
|
Agriculture
|
Non
Agriculture
|
Ratio
Agriculture and/Non Agriculture
|
|
1993-1997
|
1.656.886
|
7.054.242
|
0,23
|
|
1998-1999
|
1.653.568
|
6.356.905
|
0,26
|
|
2000-2003
|
1.673.812
|
6.955.986
|
0,24
|
|
2000
|
1.627.685
|
6.708.731
|
0,24
|
|
2001
|
1.682.225
|
6.753.018
|
0,25
|
|
2002
|
1.690.718
|
7.021.665
|
0,24
|
|
2003
|
1.694.619
|
7.340.531
|
0,23
|
The development in agricultural sector
focused more in fulfilling the national demand for food and in some cases this
effort has not been in compliance to improve farmers income. The development in
agricultural product, mainly rice, started since the independence era with the
presence of Kasimo Plan, a Quarterly based plan(1948-1950) through the setting
up of Association to Village Community Education (Balai Pendidikan Masyarakat Desa). This effort experienced up and
down condition ended with the proclamation of Padi Sentra (Rice for People) in 1958
aimed at improving rice productivity through intensification program. The Padi Sentra applied Pasca Usah Tani technology including 1).
Vast, timely Water provision; 2). The application of potential high yielding
seed; 3). Adequate Fertilizer provision ; 4) Integrated pest-control and, 5).
Appropriate Planting methodology.
Following the previous efforts, in
1963 Bogor Institute of Agriculture conducted research action applying
“following agricultural practices” (pasca
Usaha Tani) in Karawang and were able to improve the harvest in double. The
success of the project later followed by the Department of Agriculture with the
famous program of mass demonstration and bettered called Bimas (Mass Guidance) in 1967.
Simultaneously with the extensive Mass Guidance program, the Rice
Research Institute(IRRI)invented new break through in technology in the form of new high
yielding seed responsive to fertilizer,
they were IR5 and IR8 (PB5 and PB8).
A number of achievements have
encouraged the improvement of rice productivity in 1969-1993, by more than 250%
and so with the other agricultural commodities. (Table-12) This achievement has
brought Indonesia
to be a self-sufficient country in 1984 which was previously known as the world
biggest Importing Country.
Besides the positive impact stated,
the government had to bear high cost to the above the success of rice
intensification program due to the import of the most of production in chemical
fertilizer and pesticides. The use of fertilizer package has changed the
framers to rely on the package and the consumption of the fertilizer is
decreasing from time to time.
At the same time this tendency caused
decreasing damage of environment and the pest resistance to pesticides. Some
unexpected pest attack broke out in many places and the land quality is
decreasing due to continuous utilization.
From the farmer’s sides who
implemented intensification program, and had to pay for agro input attainment
while the subsidy of credit for farmers was not given evenly to use for
farmers, resulted in higher benefits to rich farmers. The accumulated
improvement of intensification program has intensively created new rich farmers
in villages in their efforts to extend the land authorizations. This condition
give more conflicts to dull farmers who had less than 0.5 hectares, the
alternative for them was cultivating the land with what they had or selling the
land to rich farmers.
During 1973 –1993 the number of rich
farmers was relatively constant in 11.5-11.9% from the total farmer households,
but the total percentage of areas they possess was improving from 47.1% to
50.2%. Meaning that there was improvement of average width areas they authorize.
The average of landownership of the farmers in the ownership deviance is 2.00 –
4.99 hectares, and so with the farmers own more than 5.0 hectares, the average
of ownership increased by 11.90 hectares from 9.45 previously.
Table-11.
Production of agricultural of 1969-2002 commodity
|
Commodity
|
1969
(000 ton)
|
1993
(000 ton)
|
Increase (%)
|
|
Rice
Corn
Maize
Soy
bean
Peanut
Beef
egg
milk
|
12.249
2.292
10.917
389
267
309
36,3
28,9
|
30.741
6.764
15.280
1.476
674
1.130
535
382
|
251
295
140
379
252
366
1.466
1.322
|
IV. THE AGENDA OF AGRARIAN REFORM AND VILLAGE
DEVELOPMENT
IN
INDONESIA
National development in Indonesia is
decided by the government and aimed at the work creating for poverty
alleviation as the strong fundament to improve standard of living of the
community to create social evenhandedness. The principles of social
evenhandedness developed through a process for fulfillment to people’s basic
rights as guaranteed in the constitution. The policy on National Development
envisaged in the National Intermediate Development Plan (2004-2009) designed
referring to the long term vision of the Indonesian country (20 year – term), that
is:
”The Establishment of modern
Indonesian indomitable, peaceful, just and democratic, and prosperous,
idolizing human dignity , independency and unity based on the Five Basic
Principles and Indonesian constitution of 1945 “
Referring
to that statement the government proclaim a program related to agrarian reform,
agricultural revitalization, village revitalization including village
infrastructure development.
In the document of “Membangun
Indonesia yang aman, adil dan sejahtera” (“DEVELOPING INDONESIA TO BE SECURE,
EQUITABLE AND PROSPEROUS”) written by Susilo Bambang Yudhoyono and Muhamad
Yusuf Kalla as the candidates President and Vice President (at that time)
envisaged agenda and economic program for welfare proposed some policies
related to:
a.
Improving
and creating working opportunity
b.
Improving
quality and quantity of infrastructure and social including agricultural infrastructure,
village infrastructure relation of villages-and cities in East
Indonesia,
c.
Agricultural
and village Revitalization and improving the welfare and living quality of
farmers and farmer household.
d.
Developing
various village economy activities by encouraging village industrialization
e.
Poverty
alleviation
f.
Improving
people’s access to qualified education
g.
Improvement
of people access to qualified health services
h.
Diminishing
various imbalance
i.
Improving
natural resources management and conservation of environment quality.
j. Implementing
of Agrarian reform
In
order to create synergic development on agriculture, fishery and forestry
sectors in Indonesia,
in June 2005 the President of the Republic
of Indonesia issued the
Revitalization Program for Agriculture, Fishery and Forestry (RPPK). The
revitalization aimed at improving welfare for most of poor community and put
strong fundament for economic development. Related to agrarian aspect in RPPK
program the government plans to emerge eternal agricultural land covering 15
million hectares through out Indonesia.
To realize the plan a strong foundation of similar program for agrarian reform
is crucially needed.
In
the framework of agricultural revitalization, the development of agricultural
land could be taken up through:
a. Agrarian reform to improve farmer access to land and
water and improve the ratio of land width per capita.
b. Controlling agricultural land conversion and spare
for eternal agriculture land around 15
million hectares
c. Facilitating land use including opening new land
d. Creating conducive situation for village agro
industry as the work provider and opportunity to increase income and welfare of
farmer households
For
that reason one of strategies to agricultural development is development of
village agro-industry. The development of village agro-industry is a strategic
choice in generating and increasing income and at the same time in opening
working opportunity.
The
goal to achieve in the village development through development of agro-industry
is to improve welfare in villages through coordination of improving added
-value and competitiveness of agricultural products. In order to achieve the
goal of developing village agro-industry directed to:
a. Development of cluster industry, that is processing
industry integrated with various areas of raw material and supporting
instruments;
b. Develop processing industry household and small
scale supported with processing industry in larger scale and;
c. Develop processing industry with high
competitiveness to increase export and fulfill domestic demand.
4.1.
The agenda of Agricultural development
Referring to Indonesian vision, vision of
Agricultural development in Indonesia
of 2005-2009 period that is:
”The
Establishment of indomitable (strong) agriculture to stable food security,
increasing the added-value as well as competitiveness of agricultural products
and improvement to farmers’ prosperity”.
The indomitable agriculture and agro-industrial is a
form of agriculture with following characteristics:
1. Knowledge is the main foundation in decision making,
strengthening intuition, habits and tradition
2. Technology advancement is the main instrument in
resources application
3. Market mechanism is the main instrument in good and
services transaction
4. Efficiency and productivity are the main basis in
resource allocation
5. Quality and superiority are the resource,
orientation and goal
6. Professionalism is and outstanding characteristics
The Department of Agriculture has decided 3
agriculture development program for 2005-2009 namely:
1. Food
Security Development Program:
Food security program aimed at
facilitation to guarantee the community access to food, through food
availability, food and consumption distribution, food diversification and food
security (healthy food and religiously accepted). Through the Food Security
Council, in line with its function to have coordination with related
institutions and issue the policy on rice operation for the poor. To guarantee
food availability, marketing agriculture product and comprehensive policy to encourage
conducive food security, the government has made policies related to world
trading (WTO,APEC, AFTA). It is with that reason that Indonesia
together with G33 proposed for Special Product in through the framework of
Special Safeguard Measure (SSM) to guarantee the fair trading and the guarantee
to food security, poverty alleviation and village development in developing
countries.
2. Agribusiness
Development Program:
The development of this program meant to provide
facilitation to:
a.
Development of agricultural
practices to be productive and efficient resulting with various agricultural
products with added - value and high competitive in domestic and international
markets.
b.
The improved
contribution from agricultural sector and national economy, especially through
higher foreign exchange and the growth of gross domestic product
3. Farmer
welfare development program:
The program intended to give welfare to
poor community especially farmers. The program facilitates the improvement of
income through empowerment, improving access to agricultural resources,
institutional development and protection to poor community.
4.2.
The Agenda of Agrarian Reform
In agrarian scope of discipline Indonesia has
formulated its vision as “Land cultivated for peoples” prosperity at the most
to set justness and sustainable community, nationality and state affairs
systems of the Republic
of Indonesia. Based n the
above vision the government has developed and revised the policy to agrarian.
To start with procedures to guarantee that
agriculture could contribute the most part for people’s prosperity, the
organized structure of land authority and land ownership, in justness, less
land conflicts and conflicts related to land. The government has designed
agenda priority on-going, and continuing agenda in the future as follows:
1. Building community trust to National Land Affair
Agency;
2. Developing services and land registration and land
certificates throughout Indonesia;
3. Assurance to people’s right to land (land tenure
shift);
4. Resolution to agrarian conflict in the natural
disaster and conflict areas ;
5. Taking care of
land conflict, in Indonesia
in a systematic way;
6. Developing National Land Information System (SIMTANAS), and land
document security system in Indonesia;
7. Taking care of Collusion. Corruption and Nepotism,
improving participation and community empowerment;
8. Develop database on land ownership and land
authority in a big scale;
9. Consistently implementing the regulations on land
matters ;
10. Develop and revise the politic, law and policy on
land matters.
4.3.
Linkages between Agricultural Development and
Agrarian
Reform
The
linkage between land affairs and agrarian reform among others are;
a. Enlarging agricultural area within the areas of food
crop , horticulture, plantation and animal husbandry;
b. Controlling shift acceleration of land conversion;
c. Cultivating abandoned land;
d. Making efforts to conservation and land
rehabilitation;
e. Strengthening rights to land;
f. Developing water resources for irrigation;
g. Optimizing the irrigation water;
h. Conserving water;
i. empowering the organization managing water;
j. improving the coordination among organizations of
water management
k. improving
agricultural human resource quality managing the land and water.
V. CONLUSION
Agrarian reform and rural development has been a big
deal, needs commitment from many related parties and institution in each
country, as well as commitment support from many countries in unifying action
to achieve agrarian reform and rural development goal and village development.
The implementation of agrarian reform and rural development needs the same
comprehension, understanding, and action of all related parties. Cooperation
among all stakeholders, including Non Governmental Organization will determine
the successful accomplishment of agrarian reform and rural development implementation.
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