DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

Indonesia's Land Bank Agency uses agrarian reform to prevent business-community land disputes

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • Indonesia's Land Bank Agency aims to prevent disparities between businesses and communities through agrarian reform.
  • The agency will implement agrarian reform on its managed land (HPL) using a "term rights" scheme to protect smallholders.
  • This approach aims to empower communities over 10 years, granting them ownership rights and preventing land acquisition by businesses.

Indonesia's Land Bank Agency (Badan Bank Tanah) is prioritizing agrarian reform as a key strategy to bridge the gap between businesses and local communities, according to Muji Martopo, Head of the Agrarian Reform Division. Speaking in Jakarta, Martopo emphasized that the agency's mandate, derived from the Job Creation Law and Government Regulation No. 64 of 2021, includes fostering equitable land access.

Perhaps one thing that is interesting regarding agrarian reform activities is the emergence of new ideas on how agrarian reform activities should be carried out on the Land Bank Agency's HPL, the Land Bank Agency's Management Rights.

— Muji MartopoExplaining the innovative approach to agrarian reform on managed land.

A novel approach involves conducting agrarian reform activities on land managed under the agency's "Hak Pengelolaan" (HPL) or management rights. This strategy aims to circumvent challenges associated with direct redistribution of land that already has individual ownership certificates. Martopo highlighted instances where community-owned, certified land was acquired by companies for business purposes.

To counteract this, the agency proposes a "term rights" scheme above the HPL. Under this model, the Land Bank Agency acts as a protector of community interests. After approximately 10 years, if the agrarian reform beneficiaries actively utilize the land for their livelihoods, ownership rights will transfer to them. The beneficiaries include small-scale farmers, fishermen, and salt farmers, among others specified in regulations.

With this scheme, the Land Bank Agency will be present to defend the community.

— Muji MartopoDescribing the role of the agency in the term rights system.

Martopo expressed optimism that this decade-long empowerment program will foster community self-sufficiency, reducing the incentive for individuals to sell their land to corporations. The agency currently manages about 35,011.75 hectares of HPL, with roughly 11,714 hectares specifically allocated for agrarian reform. This initiative is viewed as a strategic government agenda to enhance community welfare by providing access to land as a productive asset.

There will no longer be companies enticing subjects to sell land to companies. Let the community enjoy their rights.

— Muji MartopoStating the goal of preventing land exploitation by businesses.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog