National Land Agency BPN - Republic of Indonesia (1995):
International Workshop on the Implementation of Rural Land Consolidation

5. Implementation of Rural Land Consolidation in Indonesia

by Dr. Ir. H. M. Nad Darga Tallurputra: Deputy II of The Head of BPN

5.1 Preface

Land Consolidation is welcomed by the government as well as the societies of Indonesia. It comes under the jurisdiction of Badan Pertanahan Nasional (BPN), the National Land Agency, and had been implemented in urban and rural areas, with prospect of becoming a means of product increment and a means to efficiate rural land cultivation.

It was experimentally discovered that on the outer island like Sumatera, Kalimantan, Sulawesi and Irian Jaya, the success of Landreform has been through the implementing of method of Land Consolidation. Traditional and customary land holdings in these areas generally start with the deforestation of lands for shift cultivation which is bound to create uncertainly regarding the "adat" land holding system itself as it also creates oversized amounts of land holdings, and inefficient and ineffective usage of lands.

To support current activities on agricultural development it is thus for undertakings in this sector to be efficiated and made productive. This calls for Land Consolidation by way reforming the holdings and usages of inefficient and unproductive rural lands. A decree was, subsequently, issued by BPN (No. 4/1991) giving general overviews on the implementing of Land Consolidation which was further broken down into protocol (No. 410-4245) giving direction and practicalities.

The objectives of Land Consolidation in Indonesia is to reform the present holding of lands so as to make it in accordance with General Planning of Regional Spatial Plan (Rencana Umum Tata Ruang Wilayah-RUTRW), and to optimize the use of lands within an orderly network of spatial planning to support the nation's development. Thus is Land Consolidation defined as "a policy for the reforming of holdings and using of lands; the acquiring of land for public development; and for the increment of environment qualities and the preserving of natural resources, by active participation oft the society" (BPN Decree No. 4/1991).

Within the framework of land policy, Land Consolidation is:

• To reshape the existing physical condition of land holding and landuse to be in accordance to RUTRW.
• To acquire lands in support to development by means of creating cost-equivalent-lands (CEL) in undertaking of Land Consolidation.
• To increase the efficiency and productivity of lands, and the quality of environment as well as the conserving of lands, through a consistent landuse planning.
• To mobilize the potential of society in support to national and BPN development.
• To create legal certainty on the consolidated lands itself.

The budget for rural Land Consolidation is acquired through agribusiness enterprises of NESS (Nucleus Estate and Smallholder System) and PESS (Private Estate and Smallholder System). Heralding these systems are PT Minanga Mandala (in South Sumatera) and PT London Sumatera (in South and German Sulawesi).