Agrarian Reform in Indonesia

Indonesian Positive Law-

The government in order to realize the equitable distribution of the structure of control, ownership, use and utilization of land has established Presidential Regulation Number 86 of 2018 concerning Agrarian Reform.

In the description it is stated regarding:

Definition of Agrarian Reform

Based on the provisions of Article 1 number 1 of Presidential Regulation Number 86 of 2018 concerning Agrarian Reform, it is stated that Agrarian Reform is a realignment of the structure of control, ownership, use, and more equitable use of land through asset management and accompanied by structuring access to the prosperity of the Indonesian people.

Objectives of Agrarian Reform

Agrarian Reform aims to as stated in the provisions of Article 2 of Presidential Regulation Number 86 of 2018 concerning Agrarian Reform, namely:

1. Reducing inequality in land tenure and ownership in order to create justice.
2. Handling Agrarian Disputes and Conflicts.
3. Creating a source of prosperity and welfare of agrarian-based communities through the regulation of land tenure, ownership, use and utilization.
4. Creating jobs to reduce poverty.
5. Improving people’s access to economic resources.
6. Improving food security and sovereignty.
7. Improving and maintaining the quality of the environment.

Implementation of Agrarian Reform

The implementation of agrarian reform is regulated in the provisions of Article 3 – Article 16 of Presidential Regulation Number 86 of 2018 concerning Agrarian Reform.

The implementation of agrarian reform is carried out by the central and local governments which include:

1. Agrarian Reform Planning
2. Implementation of Agrarian Reform

Agrarian Reform Planning

Agrarian reform planning includes:

1. Planning of asset structuring of the control and ownership of land objects of Agrarian Reform (TORA).
2. Planning for the arrangement of access in the use and utilization and production of Agrarian Reform Object Land (TORA).
3. Planning to increase legal certainty and legalization of Agrarian Reform Object Land (TORA);
4. Planning for the handling of agrarian disputes and conflicts.
5. Planning of other activities that support agrarian reform.

Agrarian Reform Object Land (TORA) is land controlled by the state and/or land that has been owned by the community to be redistributed or legalized (Article 1 number 4 PP No. 86/2018).

Implementation of Agrarian Reform

The implementation of agrarian reform includes:

1. Asset Structuring
2. Access Structuring

Asset Structuring

The definition of asset structuring as stated in the provisions of Article 1 number 2 of Presidential Regulation Number 86 of 2018 concerning Agrarian Reform is the realignment of land tenure, ownership, use and utilization in order to create justice in the field of land tenure and ownership.

Asset structuring consists of two activities, namely:

1. Redistribution of assets;
2. Legalization of assets;

Regarding the redistribution of assets and the legalization of assets will be further elaborated with a separate article, given the existing limitations.

Access Structuring

Access Arrangement has the meaning as stated in the provisions of Article 1 number 3 of Presidential Regulation Number 86 of 2018 concerning Agrarian Reform, which is the provision of opportunities for access to capital and other assistance to Agrarian Reform Subjects in order to improve welfare based on land use, which is also called community empowerment.

The access arrangement is cluster-based in order to increase economies of scale, added value and encourage entrepreneurial innovation in Agrarian Reform Subjects which include:

1. Social mapping; intended to determine the potential, opportunities, and constraints that the Subject of Agrarian Reform has as a target group for structuring access.
2. Institutional capacity building is carried out through the formation of access arrangement target groups based on business type.
3. Business assistance; carried out through equitable partnerships.
4. Skill improvement; is carried out through counseling, education, training, technical guidance.
5. The use of appropriate technology is carried out through cooperation with universities, the business world, research institutions, and ministries/institutions or local governments.
6. Business diversification; carried out by diversifying the types of businesses to maximize efforts to improve welfare.
7. Facilitation of access to capital; carried out by financial institutions, cooperatives, business entities through corporate social responsibility (CSR) funds.
8. Facilitation of marketing access (offtaker) is carried out through the establishment of a policy of providing loans to the target group of Access Arrangements with low interest with a long period of time.
9. Strengthening commodity databases and information is carried out by accommodating and distributing the results of the efforts of the target group of Access Arrangements.
10. Provision of supporting infrastructure; is carried out by compiling an Access Structuring database which is used as the basis for supervision.

Access Structuring is carried out with the pattern:

1. Direct grant by the government.
2. Cooperation between communities that have a Certificate of Property Rights (SHM) and legal entities through an equitable partnership program.
3. Cooperation between community groups that have joint ownership rights with legal entities through land programs as capital participation.

The access structuring activities are carried out by the relevant ministries which are coordinated with the agrarian reform task force team. (RenTo) (210722)